As the earnings season draws to a close, the U.S. bond yield curve continues to invert, worries regarding economic recession linger, international oil prices hit a new low since February, the four major U.S. stock indexes were mixed on Thursday (4th), and energy stocks were under heavy selling pressure ,Dow JonesAnd the S&P index closed slightly, TSMC ADR rose 2.21%.
Investors are awaiting the latest non-farm payrolls data to examine the state of the U.S. economy as a whole and for clues on the pace of the Federal Reserve’s interest rate hikes. Economists estimate that the US Labor Department announced on Friday (5th) that non-farm payrolls increased by 250,000 in July, and the unemployment rate remained unchanged at 3.6%. Analysts concluded that a non-farm payroll increase of as much as 300,000 might force the market to reassess expectations for a potential labor market slowdown and might weigh on the stock market.
Cleveland Fed President Loretta Mester said on Thursday that the Fed needs to raise interest rates further to suppress demand and reduce inflationary pressures. She supports a cycle of rate hikes to continue through the first half of 2023, with the federal funds rate target raised above 4%.
Many countries are paying close attention to the situation in the Taiwan Strait. China held a three-day live-fire military exercise around Taiwan. “The U.S. and countries believe that the escalation is not in anyone’s interest and might have unintended consequences,” U.S. Secretary of State Antony Blinken warned on the sidelines of a meeting of ASEAN foreign ministers in Phnom Penh, Cambodia, on Thursday. “
NATO Secretary-General Jens Stoltenberg: “Pelosi’s visit to Taiwan is not a reason for China to overreact or threaten Taiwan. The United States and other NATO allies have regularly sent senior officials to Taiwan for many years, so this is not a Chinese overreaction. reason for the reaction.”
The new crown pneumonia (COVID-19) epidemic continues to spread around the world. Before the deadline, data from Johns Hopkins University in the United States pointed out that the number of confirmed cases worldwide has exceeded 581 million, and the number of deaths has exceeded 6.41 million. More than 12.3 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Thursday (4th):
Focus stocks
Of the five kings of technology, only Apple slipped. apple (AAPL-US) fell 0.19%; Meta (META-US) rose 1.05%; Alphabet (GOOGL-US) rose 0.093%; Amazon (AMZN-US) rose 2.19 percent; Microsoft (MSFT-US) rose 0.42%.
Dow JonesMore than half of the constituents closed in the dark. Walmart (WMT-US) fell 3.78%; Chevron (CVX-US) fell 2.72%; Verizon Communications (VZ-US) fell 1.99%; Visa (V-US) rose 2.39%; 3M (MMM-US) rose 3.23 percent.
half feeConstituent stocks generally ended higher. AMD (AMD-US) rose 5.93%; NVIDIA (NVDA-US) rose 1.70 percent; Applied Materials (AMAT-US) rose 1.88%; Micron (MU-US) rose 0.93%; Texas Instruments (TXN-US) rose 0.78%; Qualcomm (QCOM-US) rose 1.24%.
Taiwan stock ADR was the best performer with TSMC. TSMC ADR (TSM-US) rose 2.21%; ASE ADR (ASX-US) rose 2.03%; UMC ADR (UMC-US) rose 1.32 percent; Chunghwa Telecom ADR (CHT US) fell 0.22%.
Corporate News
TSMC ADR (TSM-US) received a bonus of 2.21% to US$88.42 per share, the conversion price was 530.52 yuan, and the discount-premium rate reached 6.10%. According to a survey by research firm TrendForce, Intel (INTC-US) The filming schedule of the Meteor Lake chipset has been delayed, and almost all of the 3-nanometer production capacity originally scheduled for next year’s production has been cancelled, which has impacted TSMC’s 3-nanometer production expansion plan. The expansion project is proceeding as planned.
Alibaba (BABA-US) rose 1.79% to $97.43 a share.Alibaba’s first-quarter revenue fell 1% to 205.56 billion in pre-market ThursdayRMBbetter than expected, but net profit fell 50% to 22.739 billionRMBAlibaba faced many unfavorable factors in the quarter, including the escalation of the epidemic and the blockade of major cities such as Shanghai. However, as China unblocks and resumes production, Zhang Yong, chairman of Alibaba’s board of directors, said that in June, he has seen signs of business recovery, and he is not optimistic regarding the future. Confidence in long-term growth.
AMTD Digital (Asia Digital Finance Corporation) (HKD-US) plunged 27.27% to $800 a share on Thursday. Due to rumors that it has ties to Hutchison Whampoa and Cheung Kong Holdings, which are owned by Li Ka-shing, the richest man in Hong Kong, AMTD Digital, a subsidiary of AMTD Group, went public in the United States in just two weeks. It surpassed Tencent, but Cheung Kong denied on Thursday rumors of holding shares in AMTD Digital.
Intel (INTC-US) fell 1.37 percent to $35.66 a share. “Archyde.com” reported on Thursday, citing sources, that Italy is close to reaching an agreement with Intel to build an advanced semiconductor packaging and assembly plant with an initial investment of at least $5 billion, which is part of Intel’s $80 billionEUR (approximately $88 billion) to invest in a part of the European semiconductor supply chain.
Economic data
- The number of Americans receiving unemployment benefits last week reported 260,000, expected 259,000, the previous value of 254,000
- The number of people receiving unemployment benefits in the United States reported 1.416 million last week, 1.370 million is expected, and the previous value was 1.368 million
- US June trade balance reported – $79.6 billion, expected – $80.1 billion, previous value – $84.9 billion
Wall Street Analysis
Dan Suzuki, money manager at Richard Bernstein Advisors, said that the economy and the market are engaged in a fierce tug of war. On the one hand, reasonable growth will support continued inflationary pressures and allow the Federal Reserve to continue raising interest rates. On the other hand, slower growth will ease inflation. The Fed will stop raising interest rates.
British bank Barclays is optimistic that despite rising geopolitical tensions around the world and hawkish rhetoric that the Federal Reserve will continue to raise interest rates aggressively to curb inflation, corporate earnings will be enough to fuel the next rally.
However, investment bank Bernstein expects that due to the continued deterioration of macroeconomic data, corporate financial forecasts will be significantly lowered, the recent strong rebound in the stock market will not continue, and US stocks will fall once more in the short term.
Greg Faranello, head of U.S. rates trading and strategy at AmeriVet, pointed out that the market focus is on Friday’s non-farm payrolls report, and these data need to remain strong or fears of a U.S. recession will intensify.
The figures are updated before the deadline, please refer to the actual quotation.