The U.S. announced that the producer price index (PPI) continued to rise in April, suggesting that inflationary pressures still exist, and market concerns may prompt the Federal Reserve (Fed) to further tighten monetary policy. U.S. stocks opened lower on Thursday (12th). ,WillS&P 500 IndexPushed to a more than one-year low, approaching the brink of a bear market.
Before the deadline,Dow Jones Industrial Averagefell more than 200 points or nearly 0.7%,Nasdaq Composite Indexfell more than 1%,S&P 500 Indexfell nearly 0.8%,Philadelphia SemiconductorThe index fell nearly 0.5%.
The U.S. PPI rose 11% y/y in April, beating expectations for a 10.7% gain, but down from a revised 11.5% a month earlier. April core PPI rose 8.8%, lower than expected 8.9%, the previous value of 9.2%. In April, the monthly growth rate of PPI was 0.5%, which was in line with market expectations, and the monthly growth rate of core PPI was 0.4%, which was lower than the expected 0.6%.
The latest inflation data did not ease investors’ concerns. April’s PPI data looked similar to yesterday’s consumer price index (CPI), but the latter fell slightly from the previous month’s value, but the decline was not large, suggesting that the general The swelling still exists.
On the other hand, the problem for the stock market is that as costs continue to rise, companies have to raise prices to respond, which in turn leads to increased consumer inflation, prompting the Fed to increase the pace of interest rate hikes, posing a threat to economic and corporate profit growth. In addition, some companies were unable to raise prices enough to meet costs, resulting in a severe hit to interest rates.
The same day, the number of people receiving initial jobless benefits last week was 203,000, an increase of 1,000 from the previously revised 202,000 and above the market expectation of 195,000. Continuing unemployment benefits were reported at 1.343 million, below market expectations of 1.38 million.
The trend of international oil prices is still fluctuating. On the one hand, there are concerns about the impact of the global economic recession on demand. On the other hand, the Russian-Ukrainian war affects supply. In addition, the epidemic in China is also one of the influencing factors. The West Texas crude oil futures due in June rose slightly before the deadline. 0.07% to $105.79 a barrel, due in JulyBrent CrudeFutures fell 0.44% to $107.04 a barrel.
As of 21:00 on Thursday (12th) Taipei time:
Stocks in focus:
Lordstown(RIDE-US) surged 7.85% to $1.63 a share in early trade
Electric vehicle start-up Lordstown Motors has completed a $230 million asset sale, selling part of its Ohio assembly plant to Taiwan’s Hon Hai for a $260 million gain after reimbursement of certain operating and expansion costs.
Rivian(RIVN-US) rose 12.04% to $23.08 a share in early trade
U.S. electric vehicle startup Rivian’s first-quarter earnings missed expectations, with a loss of $1.77 per share and an operating loss of $1.6 billion on revenue of $95 million. Analysts expected a loss of $1.45 per share, an operating loss of $1.5 billion and revenue of $131 million. Despite the poor financial report, the outlook remains unchanged and the full-year vehicle delivery target remains at about 25,000.
Disney (DIS-US) fell 3.72% to $101.30 a share in early trade
Despite higher-than-expected growth in streaming subscribers in the second quarter, Disney’s adjusted earnings per share were only $1.08, below the consensus estimate of $1.19, on revenue of $19.2 billion, less than the market’s forecast of $20.3 billion. .
Today’s key economic data:
- The number of people receiving unemployment benefits in the United States last week (as of 5/7) reported 203,000, expected 195,000, and the previous value of 202,000
- Last week (as of April 30), the number of people receiving unemployment benefits in the United States reported 1.343 million, 1.38 million is expected, and the previous value was 1.387 million
- U.S. April PPI annual growth rate reported 11%, expected 10.7%, the previous value of 11.5%
- U.S. April PPI monthly growth rate was reported at 0.5%, expected 0.5%, the previous value of 1.6%
- The annual growth rate of core PPI in the United States in April was 8.8%, expected to be 8.9%, and the previous value of 9.6%
- The monthly growth rate of core PPI in the United States in April was 0.4%, expected 0.6%, and the previous value was 1.2%
Wall Street Analysis:
Christopher Rupkey, chief economist at FWDBONDS in New York, said the U.S. battle with high inflation is not over, but the market can still breathe a sigh of relief that the Fed can raise interest rates in June and July as planned 2 yard (50 basis points), there is no reason to act more quickly to fight inflation.
“As service prices continue to rise, it may become increasingly difficult for the Fed to deny that a wage price spiral is taking place, which means the market faces the risk of further hawkish Fed policy,” said Veronica Clark, an economist at Citigroup in New York.
There are no signs the Fed will become more accommodative in this tightening cycle, ING economists say, and the Fed has more reason than most other central banks to cut its policy rate to neutral, which should support the dollar in coming months Core.