2023-04-25 20:47:01
A new batch of U.S. corporate earnings reports were released, First Republic Bank deposits fled, and UPS’s earnings report exacerbated concerns about an economic slowdown. Data showed that U.S. consumer confidence fell to a September low in April, and U.S. stocks on Tuesday (25th) ) fell all the way after opening,10-Year U.S. Treasury YieldFalling below the 200-day moving average, all sectors of the S&P were bloodied. The index closed down 1.58%, the worst single-day performance since March 22.
In terms of political and economic news, the 80-year-old US President Biden officially announced his candidacy for the 2024 presidential election on Tuesday, competing for re-election. A situation in which the same candidate competes for two consecutive terms.
The U.S. debt bomb is about to detonate, with U.S. Treasury Secretary Janet Yellen warning on Tuesday that if Congress fails to resolve the debt ceiling, it could trigger an “economic disaster” and push interest rates higher in the coming years.
The US government plans to spend 11 billion US dollars (338.3 billionTaiwan dollar) to establish a new national organization “National Semiconductor Technology Center” across the United States for research and development to enhance the US economy and national security.
Nine Republican senators on Tuesday urged the Biden administration to impose sanctions on Huawei Cloud and other Chinese cloud service providers, citing threats to national security.
U.S. Trade Representative Katherine Tai said on Tuesday that the United States hopes to have closer cooperation with countries in the Indo-Pacific region through the “Indo-Pacific Economic Framework” (IPEF), which will not conflict with other economic organizations.
The Group of Seven (G7) leaders’ summit in May is about to start. The United States tried to propose that the G7 members impose a comprehensive export ban on Russia. This move was opposed by the European Union and Japan.
More than 400 people have been killed and 4,072 injured since civil war broke out in Sudan on April 15, with the World Health Organization (WHO) warning on Tuesday that there was a “very high risk” of a biohazard over the occupation of a Sudanese laboratory. The United Nations (UN) also stated that it has been forced to drastically reduce humanitarian relief missions in Sudan,
The performance of the four major US stock indexes on Tuesday (25th):
- US stocksDow Jones IndexIt fell 344.57 points, or 1.02 percent, to close at 33,530.83.
- NasdaqThe index fell 238.05 points, or 1.98%, to close at 11,799.16 points.
- S&P 500 IndexIt fell 65.41 points, or 1.58%, to close at 4,071.63.
- Philadelphia SemiconductorThe index plunged 101.23 points, or 3.37%, to close at 2,906.28.
Focus stocks
The five kings of science and technology are all exhausted. Amazon (AMZN-US) down 3.43%; Meta (META-US) down 2.46%; Apple (AAPL-US) down 0.94%; Alphabet (GOOGL-US) down 2.00%; Microsoft (MSFT-US) down 2.25%.
Dow JonesConstituent stocks generally fell. Johnson (JNJ-US) rose 0.92%; Dow Chemical (DOW-US) plunged 5.22%; Intel (INTC-US) down 2.63%; American Express (AXP-US) down 2.78%.
fee halfConstituent stocks became the focus of selling. Micron (MU-US) fell 2.30%; Huida (NVDA-US) down 2.96%; AMD (AMD-US) down 4.31%; Applied Materials (AMAT-US) fell 2.64%; Texas Instruments (TXN-US) down 3.70%; Qualcomm (QCOM-US) down 2.81%.
Taiwan stock ADR received more black. TSMC ADR (TSM-US) fell 2.78%; ASE ADR (ASX-US) down 2.01%; UMC ADR (UMC-US) fell 4.01%; Chunghwa Telecom ADR (CHT US) rose 0.07%.
Corporate News
First Republic Bank, whose main business is wealth management services, saw its deposit balance drop sharply in the first quarter, down 40.8% year-on-year. It is rumored that the bank plans to sell US$100 billion in assets to save itself.
First Republic Bank (FRC-US) shares crashed 49.37% to $8.10 per share on Tuesday, closing at a record low. Dragging the KBW regional bank index down nearly 3.5 percent.
American conglomerate GENERAL (GE-US) slipped 1.71% to $98.44 per share. Due to the surge in demand in the aviation industry, GE’s sales in the first quarter were US$13.7 billion, and adjusted earnings per share were US$0.27, both of which were better than Wall Street’s expectations. The first quarter of the past ten years saw positive cash flow.
General Motors (GM-US) fell 4.02% to $32.91 per share. GM on Tuesday reported first-quarter profit and revenue that topped Wall Street expectations and raised its 2023 outlook.
Superior ratio speed (UPS-US) tumbled 9.99% to $176.29 a share, its biggest one-day drop since July 2006. UPS’s net profit per share in the first quarter was US$2.20, and its revenue reached US$22.9 billion. However, UPS lowered the lower limit of its 2023 performance forecast, exacerbating investors’ concerns about the slowdown of the US economy.
Fast food leader McDonald’s (MCD-US) fell 0.50 percent to $291.51 a share. Thanks to the continued purchase of Big Macs and milkshakes by American consumers, McDonald’s latest financial report is excellent, with adjusted net profit of $2.63 per share, higher than the expected $2.33, and revenue of $5.9 billion, higher than the expected $5.59 billion.
3M (MMM-US) fell 0.66% to $104.37 per share. On Tuesday, it said it would cut about 6,000 jobs globally, which, along with the 2,500 global manufacturing job cuts it announced in January, is expected to help save $700 million to $900 million a year before tax, as the company responds to declining demand in several key markets.
Specialty glass maker Corning Inc (GLW-US) closed down 2.32 percent at $32.89 a share. Corning reported better-than-expected first-quarter profit on Tuesday, as higher prices more than offset rising raw material costs and slowing demand. The company’s Gorilla Glass is used in smartphones from companies including Apple and Samsung Electronics.
apple (AAPL-US) weakened 0.94% to $163.77 per share. “Nikkei Shimbun” revealed that Quanta, a major foundry manufacturer, has expanded its layout in Southeast Asia. The new Vietnam factory will be completed before the second quarter of next year, and it will be put into production at the end of next year at the earliest. Quanta’s move may be to grab orders for Apple’s latest-generation MacBook. The outside world is waiting for Quanta’s June 16 shareholders’ meeting to provide further clarification.
Qualcomm (QCOM-US) fell 2.81% to $114.05 per share. Foreign media recently reported that the chip design company Arm (Arm) is building its own chips to show the performance of its products. and its semiconductor “neutral” status.
key data
- The Conference Board Consumer Confidence Index in April reported 101.3, compared with 104 expected and 104.2 previously.
- The revised monthly rate of building permits in the United States in March reported -7.7%, expected -8.8%, and the previous value was 15.8%
- U.S. February FHFA house price index reported an annual rate of 7.0%, expected 3.9%, and the previous value of 5.3%
- The US February FHFA house price index reported a monthly rate of 0.5%, expected – 0.1%, and the previous value of 0.1%
- U.S. Economic Review Council Consumer Confidence Index in April reported 101.3, expected 104.2, previous value 104.2
- The annualized monthly growth rate of new home sales in the United States in March was 9.6%, expected to be 1.1%, and the previous value was -3.9%
- The annualized total of new home sales in the United States in March was reported at 683,000, compared with 630,000 expected and 623,000 previously
- U.S. April Richmond Fed manufacturing index reported -10, expected -9, previous value -5
Wall Street Analysis
“Anytime you hear about a potential default it creates a risk-off environment, and if it’s close to default, or even has defaulted, it doesn’t bode well for risky assets or consumer confidence,” said Brian Price, head of investment management at Commonwealth.
Matt Maley, chief market strategist at Miller Tabak + Co, wrote: “Investors need to take a little longer to adjust their portfolios through common sense to adjust to the reality that this year’s soft landing is a pipe dream. More and more people believe that a recession is imminent. coming, especially with results from First Republic and UPS showing signs of a credit crunch.”
Portfolio manager Ken McAtamney, head of William Blair’s global equity team, believes headwinds remain for U.S. regional banks and signs of stress in the financial system have not yet fully subsided, but the Fed and global central banks are keeping inflation in check despite financial sector instability stay vigilant. “
George Ball, chairman of Sanders Morris Harris, said: “Predictably, the earnings season has been mixed so far. The one thing all earnings reports have in common is cost cutting, which is mainly due to concerns about the economy and investors. margin concerns.”
The numbers are all updated before the deadline, please refer to the actual quotation
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