2023-10-16 13:45:03
Investors are awaiting the release of key economic data and third-quarter earnings reports from blockbuster companies such as Tesla this week. They are also paying attention to comments from Federal Reserve (Fed) officials including Chairman Jerome Powell. This week is the next monetary policy meeting. The last talk before the policy meeting, which will enter a silent period next week, saw major U.S. stock indexes open higher on Monday (16th).
before deadline,Dow Jones Industrial Averagerose nearly 230 points or nearly 0.7%,Nasdaq Composite Indexrose nearly 60 points or nearly 0.5%,S&P 500 Indexrose nearly 0.6%,Philadelphia SemiconductorThe index rose nearly 0.9%.
Markets were generally calm on Monday after a rush into safe-haven assets last week as investors awaited further developments in the Middle East. Just as the latest U.S. earnings season gets into full swing, the turmoil in the Middle East has created additional worries for traders scrambling to decipher the economic and interest rate outlook.
Before U.S. stocks open,S&P 500 IndexFutures rose 0.3%,Nasdaq 100 futures stabilized after falling last week. The most volatile among them are U.S. Treasuries,10-Year Treasury Bond Yieldjumped, recouping some of last week’s 19 basis point loss, and the 30-year Treasury yield climbed 10 basis points.Brent crude oilPrices held near $91 a barrel after surging nearly 6% on Friday,goldPrices are falling.
Luke Hickmore, investment director of Abrdn Investment Management, said that geopolitical tensions in the Middle East are still the focus of the market, but they seem to be calmer now. However, if the scale of the war is too large, it means that oil will face greater pressure and the market will need to deal with more unrest. Certainty.
U.S. officials have been quick to engage in dialogue with Middle Eastern countries, including secret talks with Iran, to stem the conflict. According to the German media “Bild Zeitung”, US President Biden is considering a personal visit to Israel, and German Chancellor Scholtz is expected to arrive in Israel on Tuesday (17th). Jordanian King Abdullah II is in Rome and is expected to meet with Italian Prime Minister Meloni to ease tensions.
In other news, European and U.S. semiconductor stocks performed poorly after foreign media reported that the U.S. government planned to close loopholes in regulations that restrict China’s access to advanced semiconductor and chip manufacturing equipment. Huida (NVDA-US) shares fell more than 1% before the market opened on Monday.
As U.S. earnings season gets underway, Wall Street strategists warn that the outlook for corporate profits is weakening and could remain subdued. Morgan Stanley analyst Michael Wilson said profit revisions for the S&P 500 have fallen sharply over the past few weeks. Earnings revisions refer to the number of upgrades and downgrades to a company’s stock rating.
According to Citi data, ahead of the earnings season, the rate of downgrades for U.S. stocks has exceeded the rate of rating upgrades for four consecutive weeks. JPMorgan strategist Mislav Matejka expects this to continue.
At the same time, traders are also paying close attention to the latest U.S. economic data and awaiting speeches by several Federal Reserve (Fed) officials this week for clues on the policy outlook.Data on global economic conditions to be released this week include China’s economic growth data and Japan, the United Kingdom andEURInflation data for the region. In addition, after the release of a series of stronger-than-expected economic data in the United States, Fed Chairman Jerome Powell will speak.
As of 21:00 Taipei time on Monday (16th): Focus stocks:
apple (AAPL-US) fell 0.48% in early trading to $178 per share
According to an analysis report by market tracker Counterpoint Research, sales of Apple’s new iPhone 15 in China are far lower than the previous model, reflecting continued weak consumption and the rise of competitors such as Huawei. Wall Street analysts pointed out in a report that Huawei has now taken away the top position in the Chinese market from Apple.
Ford (F-US) rose 0.68% in early trading to $11.89 per share
The United Auto Workers (UAW) said on social media last week that it regretted having to escalate the strike. It was originally to get another offer, but unexpectedly Ford gave the same offer as two weeks ago. . Ford Motor previously said that because the company’s production system is interconnected, the union’s strike strategy has had a knock-on effect on various factories, so it decided to lay off another 550 people from Monday.
Pfizer (PFE-US) rose 2.93% to $33.05 per share in early trading
Pfizer last week once again lowered its full-year revenue forecast to a range of $58 billion to $61 billion. When it announced its second-quarter financial results this year, Pfizer lowered its full-year revenue forecast from US$67 billion to US$71 billion to US$67 billion to US$70 billion. The reasons given for the downward revision at the time were certain short-term headwinds, including the impact of tornadoes in the United States in July this year on pharmaceutical plants.
Today’s key economic data:
none
Wall Street analysis:
Nikolaos Panigirtzoglu, global strategist at JPMorgan Chase, said there is still a lot of macroeconomic uncertainty. The market is pricing in a lot of recession risk in 2022 but excluding 2023 as a recession has not occurred this year and is now in waiting mode while assessing whether a recession will occur in 2024.
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