Investors on Friday (18th) evaluated the hawkish remarks of Federal Reserve officials and digested the better-than-expected financial reports of Applied Materials and American apparel brand GAP. The yield of US bonds continued to rise, and the four major US stock indexes closed in red.
Dow JonesClosed up nearly 200 points, the S & P rose nearly 0.5%,That fingerandfee halfAll are slightly red. For the week, the major U.S. stock indexes fell.Dow JonesThis week’s decline was 0.01%, and the S&P fell 0.69% for the week,That fingerTired down 1.57%,fee halfTired down 1.12%.
In terms of data, data from the National Association of Realtors (NAR) showed that the sales of existing homes in the United States fell for a record nine consecutive months in October, mainly due to the soaring mortgage interest rates, which inhibited people’s ability to buy houses.
In addition, the US leading economic index (LEI) fell 0.8% in October, the eighth consecutive month of decline, indicating that the US economy may have fallen into recession.
In terms of politics and economy, the Federal Reserve officials once once more released hawks, making the market uneasy. Boston Federal Reserve Bank President Collins (Susan Collins) said on Friday that there is little evidence that inflationary pressures are weakening, and the Fed may need to raise interest rates by another 3 yards in order to seek to control inflation. Earlier, St. Louis Federal Reserve Bank President James Bullard (James Bullard) suggested on Thursday that the Fed may need to raise interest rates to a range of 5%-7% to be considered in a restrictive area and to curb inflation.
U.S.-China relations continue to welcome the dawn. Following the visit to Xi Jinping on October 14, U.S. Trade Representative Dai Qi held talks with Chinese Minister of Commerce Wang Wentao on the sidelines of the APEC Leaders’ Meeting in Bangkok, Thailand on Friday. The two sides discussed economic and trade issues, multilateral Communicate with regional economic and trade issues, and agree to continue to maintain communication.
Foreign media quoted sources as saying that the seven major industrial countries (G7) may announce the price ceiling level for Russian oil exports next Wednesday.
The novel coronavirus pneumonia (COVID-19) global epidemic continues to spread. Before the deadline, the Johns Hopkins University (Johns Hopkins University) data pointed out that the number of confirmed cases worldwide has exceeded 637 million, and the number of deaths has exceeded 6.61 million. More than 12.7 billion doses of vaccines have been administered in 184 countries around the world.
The performance of the four major US stock indexes on Friday (18th):
Focus stocks
The five kings of technology were mixed. apple (AAPL-US) rose 0.38%; Alphabet (GOOGL-US) down 0.95%; Microsoft (MSFT-US) down 0.19%; Meta (META-US) rose 0.54%; Amazon (AMZN-US) fell 0.75%.
Dow JonesConstituent stocks have their ups and downs. Allied Health (UNH-US) up 2.85%; Cisco (CSCO-US) rose 2.58%; Merck (MRK-US) rose 1.88%; Salesforce (CRM-US) down 1.1%; Walgreens Boots (WBA-US) down 0.95%.
fee halfConstituent stocks received more dividends. ON Semiconductor (ON-US) up 1.90%; NVIDIA (NVDA-US) down 1.71%; Applied Materials (AMAT-US) down 0.24%; Texas Instruments (TXN-US) down 0.10%; Micron (MU-US) rose 1.21%; Intel (INTC-US) down 0.067%; Qualcomm (QCOM-US) rose 0.81%; AMD (AMD-US) fell 0.45%.
Among the ADRs of Taiwan stocks, TSMC performed the best. TSMC ADR (TSM-US) rose 0.97%; ASE ADR (ASX-US) up 0.63%; UMC ADR (UMC-US) down 0.67%; Chunghwa Telecom ADR (CHT US) up 0.43%.
Corporate News
US semiconductor equipment maker Applied Materials (AMAT-US) fell 0.24% to $104.70 per share on Friday. Applied Materials announced its financial report for the fourth quarter and full year of fiscal year 2022 as of October 30. Revenue, profit and financial forecasts were all better than expected. Applied Materials is optimistic that the improvement of supply chain bottlenecks will help offset the blow of the economic downturn.
American clothing brand GAP (GPS-US) soared 7.38% to $13.67 per share. GAP’s revenue in the third quarter increased by 2% year-on-year to US$4.04 billion, and diluted earnings per share increased by 163% year-on-year to US$0.71, both of which were better than analysts’ estimates.
The world’s largest gay dating app “Grindr” (GRND-US) went public through a merger with a special purpose acquisition company (SPAC) Tiga Acquisition. It soared more than 200% on the first day of listing, closing at $36.50 per share.
JD ADR (JD-US) fell 2.52 percent to $56.07 a share. In the third quarter (as of September 30th), JD.com’s revenue and profit far exceeded analysts’ expectations. The main reason is that China’s new crown epidemic lockdown measures have made more consumers turn to online shopping, which has promoted JD.com’s substantial growth in the previous quarter.
Tesla (TSLA-US) closed down 1.63 percent to $180.19 a share. Tesla has recalled nearly 30,000 Model X vehicles due to airbag hazards, and Tesla will solve the problem through over-the-air (OAT) software updates.
Twitter operations are at risk of shutting down. Musk put forward strict work requirements in his “ultimatum”. Most employees refused to sign the contract, preferring to leave with a three-month severance package.
Economic data
- The annualized total of U.S. existing home sales in October is expected to be 4.38 million, compared with the previous value of 4.71 million
- The annualized monthly rate of existing home sales in the United States in October is expected to be -7.3%, the previous value is -1.5%
Wall Street Analysis
James Athey, investment director of Abrdn Investment Management Co., Ltd., predicted: “Fed officials are still hawkish, but they just want to cool down the risk sentiment a little bit, and the terminal interest rate is not necessarily higher than what the market thought a week or two ago.”
Bank of America strategists expect the Fed to shift policy only in June or July next year, and it would be a big mistake to bet on the Fed easing policy before then.
“This week has been marked by a return to reality, and the market is digesting current data following a sharp rebound in better-than-expected consumer price index (CPI) data, which brings everything back to reality,” said Stephanie Lang, chief investment officer at Homrich Berg.
“We don’t think the rebound following the CPI data is in line with fundamentals, and investors are pricing in a soft landing for the economy, which we think is unlikely to happen,” Lang said. When the hawkish stance comes out, you start to see a correction in the market.”
The numbers are all updated before the deadline, please refer to the actual quotation