Investors are betting that U.S. stocks have bottomed out following a sharp decline this year. U.S. toy maker Hasbro and others reported strong earnings. U.S. stocks opened higher on Tuesday (19th), and the dollar’s fall also boosted the rebound. Chip stocks soared ahead of the vote,half feeIt closed up more than 4.6%,Dow JonesIt rose more than 750 points, and the S&P closed nearly 2.8%.that fingerThe strong bounce is 3.11%, and it has stood on the 50-day moving average for the first time since April this year.
In terms of politics and economics, as the inflation monster strikes, the latest monthly survey of Bank of America shows that 58% of the fund managers surveyed have the lowest allocation to stocks since the 2008 financial crisis, and their cash positions have soared to the highest in 2001. The BofA’s bull/bear indicator remained at 0, indicating that investors were extremely bearish on the market outlook, which may be a signal for a short-term rebound.
The U.S. Senate is regarding to launch its first procedural vote on a long-delayed $52 billion subsidy package for U.S. chipmakers, with the goal of passing the bill early next week. It is reported that the chip bill will include a new, four-year 25% tax credit to encourage companies to build factories in the United States.
The risk of delisting more than 200 Chinese concept stocks is surging. Gary Gensler, chairman of the U.S. Securities and Exchange Commission, said on Tuesday that the current negotiations between the United States and China are constructive, but it is not clear whether the two countries can reach an agreement and whether it can be concluded in accordance with U.S. law. It is required that the Chinese authorities must make a decision to allow inspection of the actual financial reports of Chinese stocks.
The annual maintenance of Nord Stream 1, Russia’s natural gas pipeline to Europe, will end on Thursday (21st), and the European Union is planning to respond to various possible situations. Pipeline 1 will resume as scheduled, but supply will be lower than normal.
The global epidemic of new coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States pointed out that the number of confirmed cases worldwide has exceeded 564 million, and the number of deaths has exceeded 6.37 million. More than 12.2 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Tuesday (19th):
- US stocksDow JonesIt rose 754.44 points, or 2.43 percent, to end at 31,827.05.
- NasdaqThe index rose 353.1 points, or 3.11 percent, to end at 11,713.15.
- S&P 500 IndexIt rose 105.84 points, or 2.76 percent, to end at 3,936.69.
- Philadelphia SemiconductorThe index rose 123.6 points, or 4.61 percent, to end at 2,803.1.
Focus stocks
The five kings of science and technology closed higher. apple (AAPL-US) 2.67%；Meta (META-US) rose 5.11%; Alphabet (GOOGL-US) rose 4.38%; Amazon (AMZN-US) rose 3.91 percent; Microsoft (MSFT-US) rose 2.08%.
Dow JonesConstituent stocks generally rose. Boeing (BA-US) surged 5.69%; Goldman Sachs (GS-US) rose 5.57%; Nike (OF THE US) soared 5.05%; the development of heavy industry (CAT-US) rose 4.18 percent; IBM (IBM-US) fell 5.25%.
half feeConstituent stocks rebounded strongly. AMD (AMD-US) rose 5.46%; NVIDIA (NVDA-US) surged 5.53%; Applied Materials (AMAT-US) surged 5.46%; Micron (MU-US) rose 3.23%; Texas Instruments (TXN-US) rose 3.11 percent; Qualcomm (QCOM-US) rose 4.01%.
Taiwan stock ADR is only weaker than Chunghwa Telecom. TSMC ADR (TSM-US) rose 3.06%; ASE ADR (ASX-US) rose 4.44%; UMC ADR (UMC-US) rose 3.43%; Chunghwa Telecom ADR (CHT US) fell 0.02%.
Corporate News
apple (AAPL-US) rose 2.67% to $151.00 a share. Tianfeng International analyst Ming-Chi Kuo tweeted on Tuesday that although Apple will suspend hiring and reduce spending next year, these changes have not affected supply chain orders. At least the current 2023 hardware product development plan has not changed, and the visibility of equipment orders constant.
Twitter (TWTR-US) rose 2.87 percent to $39.49 a share. Twitter has successfully fought for an expedited trial in its legal battle with Musk, with a U.S. Chancellor of Justice in Delaware ruling in favor of a fast-track five-day trial in October.
IBM (IBM-US) fell 5.25% to $130.88 per share. IBM’s latest earnings beat expectations, but the company lowered its forecast for free cash flow this year, hurt by the exit from Russia and a stronger dollar.
The world-renowned brand toy company Hasbro (Hasbro) (HAS-US) rose 0.71 percent to $79.98 a share. Hasbro’s latest earnings report topped market expectations, mainly due to strong demand for its “Magic: The Gathering” collectible card game and rising product prices.
Travel and gaming stocks rose on news that Chinese Premier Li Keqiang attended the World Economic Forum’s Special Video Dialogue with Global Entrepreneurs on Tuesday, in which he emphasized China’s commitment to implementing economic reopening policies, including the resumption of international travel. Ctrip ADR (TCOM-US) rose 4.41%, Tuniu ADR (TOUR-US) soared 8.62%.
Didi ADR (DIDI-US) surged 13.31% to $3.32 per share. China will fine Didi Chuxing, China’s online ride-hailing leader, more than $1 billion in fines, the Wall Street Journal reported, citing sources, and a year-long regulatory investigation is coming to an end, when Didi can begin the process of listing in Hong Kong.
Economic data
- The United States reported 1.685 million building permits in June, an estimate of 1.65 million, and the previous value of 1.695 million
- The monthly growth rate of building permits in the United States in June was -0.6%, the previous value was -7.0%
- The number of new housing starts in the United States in June reported 1.559 million, an estimated 1.58 million, and the previous value of 1.591 million
- The monthly growth rate of new housing starts in the United States in June was -2.0%, the previous value was -11.9%
Wall Street Analysis
About 9% of S&P companies reported their latest earnings, and regarding two-thirds of them beat earnings estimates, according to FactSet data.
Chris Senyek, a strategist at Wolfe Research, warned: “The market is likely to remain very volatile in the coming months, with more bear market rallies.”
“There might be more downside in equities given the likely downward revision in corporate earnings expectations, but I believe investors are much closer to the bottom than to the top,” said Kristina Hooper, global market strategist at Invesco.
“A sharp pullback in the U.S. dollar boosted equities, as it did in late April,” said Chris Murphy, co-strategist at Susquehanna Financial Group in derivatives.
The figures are updated before the deadline, please refer to the actual quotation.