U.S. stocks closed higher on Friday (28th), technology-weightedNasdaq Composite IndexThe gains were led by investors as investors assessed the latest data on inflation and the economy, as well as corporate fourth-quarter earnings reports.
DowReceived red for 6 consecutive days, the longest rally since the end of October last year, closing up 1.8% this week;S&P 500 IndexClosed higher for several days, up regarding 2.5% this week;That fingerIt closed higher for 4 consecutive weeks, setting a record for the longest weekly rise since August last year. This week, the weekly rose more than 4.3%.
U.S. stocks have rebounded strongly since the beginning of the year, led by some of the biggest decliners, including the technology sector, leading the recovery.That fingerSoaring 11% so far this year, it is on track for its best January performance since 2001, easily beating theS&P 500 IndexandDowsynchronous expression.
The US Department of Economy announced on Friday that the personal consumption expenditures price index (PCE) rose by 0.1% in December, and the annual rate of inflation fell to 5% from 5.5% in the previous month. The data, the Fed’s preferred measure of inflation, revealed more signs of cooling in the cost of living in the United States.
Core PCE (ie excluding food and energy prices) rose at a 4.4% annual rate in December, down from a 4.7% increase in November.
Liz Ann Sonders, chief investment strategist at Charles Schwab Financial Group, said on Friday that the annual rate of the PCE index and the core PCE index was fully in line with expectations, and both indicators fell from the same period last year. “This is good news for inflation data.”
Meanwhile, consumer spending fell 0.2% in December. “The consumer is probably the weakest card in the first-quarter GDP deck,” Sonders said.
She continued to expect the Fed to raise its benchmark interest rate by 25 basis points at its policy meeting next week. Economic data this week did not distort that expectation. For the Fed to start cutting interest rates, the labor market and the economy must become “quite significantly” weaker. possible. However, all the economic data released this week appeared to show progress in the Fed’s fight once morest inflation without sparking a sharp rise in unemployment.
Separately, US consumer confidence rose to 64.9 in late January, according to the University of Michigan Consumer Attitude Index. In December, the US existing home sales index rose by 2.5%, ending the six consecutive months of decline.
Nigel Green, chief executive of deVere Group, believes that the reopening of China, weak natural gas prices and increasing signs of a soft landing in the US economy, which appear to show that the Fed is reducing inflation without causing mass unemployment, are among the factors improving the outlook for global markets.
U.S. Treasury yields continued to stay above par as markets expected Fed Chairman Jerome Powell to continue raising interest rates in his press conference.
Investors continued to worry regarding corporate fourth-quarter earnings reports and next-quarter guidance. Schwab’s Sonders said that while overall performance was good, companies that underperformed Wall Street’s expectations were being hit too hard.
Intel (INTC-US) closed down 6.4 percent on Friday following reporting earnings. “Intel’s earnings report disappointed everyone, and the first-quarter revenue guidance was terrible,” said Edward Moya, senior market analyst for the Americas at Oanda.
The performance of the four major US stock indexes on Friday (27th):
Focus stocks
The five kings of science and technology rose across the board. apple (AAPL-US) up 1.37%; Meta(META-US) up 3.01%; Alphabet (GOOGL-US) rose 1.9%; Amazon (AMZN-US) up 3.04%; Microsoft (MSFT-US) edged up 0.06%.
Dow Jones The 30 individual stocks were mixed. Salesforce (CRM-US) fell 0.35%, while Chevron (CVX-US) plunged 4.44%; Goldman Sachs (GS-US) down 0.36%; IBM (IBM-US) edged down 0.04%, Merck (MRK-US) fell 1.39%.
fee halfConstituent stocks rose less and fell more. Marvell (MRVL-US) down 0.32%, NXP (NXPI-US) up 0.84%, Huida (NVDA-US) up 2.84%, Micron (MU-US) up 1.70%; Wolfspeed (WOLF-US) rose 2.37%.
ADRs of Taiwan stocks mostly closed lower. TSMC ADR(TSM-US) fell 0.16%; ASE ADR (ASX-US) fell 1.45%; UMC ADR (UMC-US) down 0.51%; Chunghwa Telecom ADR (CHT US) down 0.49%.
Corporate News
After its earnings report earlier this week, Tesla (TSLA-US) led another surge in consumer discretionary stocks with an 11% gain on Friday.
Chevron (CVX-US) announced its financial report before the market. Although the revenue in the fourth quarter was higher than expected, the profit was lower than expected. The stock price fell 4.44% on Friday.
American Express (AXP-US) announced its fourth-quarter financial report before the market. Although the profit was lower than expected, the outlook for the full fiscal year in the future was optimistic, and the dividend was raised by 15%, which encouraged the share price to close 10.54% higher on Friday.
Amazon announced that starting February 28, it will charge a tiered shipping fee of $3.95 to $9.95 for fresh grocery orders under $150. (While Amazon Fresh grocery shopping is available to everyone, shipping is only available to Prime members)
