International oil prices fell, and investors continued to focus on the Russian-Ukrainian war and sanctions by Western countries. U.S. stocks were mixed on Friday (25th). Before the deadline,Dow Jones Industrial Averagerose more than 70 points or nearly 0.21%,Nasdaq Composite Indexdown 0.29%,S&P 500 Indexup 0.09%,Philadelphia SemiconductorThe index fell 0.83%
International oil prices fell under the influence of various news. It was reported that the European Union would not immediately ban Russian crude oil imports. At the same time, the United States agreed to increase the delivery of natural gas to the European Union. In addition, it was reported that the Kazakh CPC Caspian oil pipeline has resumed some Black Sea terminals. Ships are operating, and the rise in oil prices puts the brakes on the brakes.
This week, the stock market is in a state of mixed economic data. The Russian-Ukrainian war has sparked concerns regarding inflation and commodity supply disruptions. Recently, US President Biden said that if Russia uses biological and chemical weapons of mass destruction, it will join NATO. Respond and call for Russia to be expelled from the Group of 20 (G20), once more escalating market concerns regarding the Russian-Ukrainian war.
On the other hand, investors continued to deal with the impact of successive sanctions imposed on Russia by Western countries, including rising raw materials, which in turn triggered inflation and expectations that the Federal Reserve (Fed) will increase interest rates. A key part of the U.S. Treasury yield curve continues to flatten or may invert, fueling debate that economic growth might slow sharply or even decline.
America 10-year Treasury yieldThe yield edged up to 2.414% from 2.34% in the previous session, and the yield has risen for 11 straight sessions in the past 14 sessions.
As of 21:00 on Friday (25th) Taipei time:
Stocks in focus:
Bed Bath & Beyond(BBBY-US) rose 7.38% to $23.73 a share in early trade
Activist investor Ryan Cohen is close to reaching a settlement with retailer Bed Bath & Beyond and will appoint three new directors to the company’s board, with the two sides likely to reach an agreement as soon as Friday, reports say. Cohen’s RC Ventures disclosed this month that it holds a 9.8% stake in Bed Bath & Beyond.
NIO (NIO-US) fell 5.71% to $20.73 a share in early trade
Chinese electric car maker NIO recently reported fourth-quarter earnings, despite a 49% jump in revenue toRMB 9.9 billion yuan, but net loss jumped 54.4% to 2.1434 billion yuan, much higher than analysts’ estimate of 1.51 billion yuan. Q4 deliveries increased 44.3% to 25,034 units, and nearly 100,000 vehicles were delivered in 2021, an annual increase of nearly 110%. However, the company forecast only 25,000 to 26,000 deliveries in the first quarter, lower than Wall Street’s forecast of 28,000 vehicle.
Honest Company(HNST-US) plummeted 27.57% to $4.38 per share in early trade
American Hollywood star Jessica Alba established the Honest Company, a consumer goods company. Due to the sharp decline in masks and disinfection products, the loss in the last quarter reported a few days ago exceeded expectations, and it also gave a bleak financial forecast for the current quarter.
Today’s key economic data:
- The final value of the U.S. Michigan consumer confidence index in March was 59.4, expected to be 59.7, and the previous value of 59.7
- US February existing home sales index reported a monthly rate of -4.1%, expected 1%, the previous value -5.7%
Wall Street Analysis:
Gene Tannuzzo, head of global fixed income at Threadneedle Investments, said the Fed’s efforts to quell inflation will eventually push the bond yield curve to invert, but that doesn’t necessarily mean a recession because it’s a very special cycle. And it’s the first time in more than 30 years that the Fed is catching up with inflation.
Mark Lehmann, chief executive of JMP Securities, said the road ahead for the stock market is still bumpy, and despite the good news regarding the Russian-Ukrainian war a few days ago and the stock market digesting the Fed’s hawkish move to quell inflation, it is still not optimistic in the short term.
