U.S. House of Representatives Speaker Nancy Pelosi arrived in Taiwan on a special plane. The political situation in the U.S., China, and Taiwan was treacherous. Coupled with Fed officials’ remarks on hawkish interest rate hikes, Kaito Heavy Industries, known as the “prosperity canary,” reported poor financial results. The four major U.S. stocks The index was completely exhausted on Tuesday (2nd),Dow JonesIt closed more than 400 points in the black, the S&P fell 0.67%, and the TSMC ADR edged down 0.16%.
On the political and economic front, a surge in U.S. bond yields also worsened sentiment following several Fed officials downplayed expectations of a pause or rate cut by the Fed in 2023. San Francisco Fed Bank President Mary Daly said on Tuesday that she does not support a move to rate cuts next year. Cleveland Fed President Loretta Mester also said it would take several months of evidence that inflation has peaked before the end of the rate hike cycle.
Meanwhile, Chicago Fed President Charles Evans said a 3-yard rate hike in September is also possible, a more aggressive rate than the market expected.
In terms of geopolitics, Nancy Pelosi, Speaker of the U.S. House of Representatives, arrived at Songshan Airport at 10:44 Taipei time on Tuesday, becoming the highest-level U.S. official to visit Taiwan in 25 years and the second U.S. Speaker of the House to visit Taiwan.
White House National Security Council strategic communications coordinator John Kirby reiterated that the United States supports the “one China” policy and does not support Taiwan’s independence, but absolutely supports the right of the Speaker of Congress to visit Taiwan. Beijing has no reason to turn a potential visit consistent with long-standing U.S. policy into some kind of crisis or conflict, or use it as an excuse to increase aggressive military activity in or around the Taiwan Strait.
In addition to banning the import of products from more than 100 Taiwanese food factories and disrupting Taiwan with several military planes, the Chinese authorities announced on Tuesday that they would conduct military exercises around Taiwan from 12:00 on the 4th to 12:00 on the 7th following Pelosi’s special plane arrived in Taiwan. The same three-day blockade of Taiwan’s sea and airspace. Taiwan’s Ministry of National Defense responded that it has closely monitored and strengthened its vigilance, and will respond appropriately in due course.
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 579 million, and the number of deaths has exceeded 6.4 million. More than 12.3 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Tuesday (2nd):
Focus stocks
The five heavenly kings of science and technology fluctuate with each other. apple (AAPL-US) fell 0.93%; Meta (META-US) rose 0.16%; Alphabet (GOOGL-US) rose 0.24%; Amazon (AMZN-US) fell 0.91%; Microsoft (MSFT-US) fell 1.15%.
Dow JonesMore than half of the constituents closed in the dark. Pioneering Heavy Industries (CAT-US) fell 5.82%; Boeing (BA-US) fell 3.42%; Visa (V-US) fell 2.41 percent; Nike (OF THE US) fell 2.21 percent; Salesforce (CRM-US) rose 0.44%.
half feeConstituent stocks were mixed. AMD (AMD-US) rose 2.59%; NVIDIA (NVDA-US) rose 0.46 percent; Applied Materials (AMAT-US) fell 1.33%; Micron (MU-US) fell 0.11%; Texas Instruments (TXN-US) fell 0.88%; Qualcomm (QCOM-US) rose 0.27%.
Taiwan stocks ADR collectively fell. TSMC ADR (TSM-US) fell 0.30%; ASE ADR (ASX-US) fell 0.69%; UMC ADR (UMC-US) fell 1.20%; Chunghwa Telecom ADR (CHT US) fell 0.22%.
Corporate News
The US economic indicator companies and manufacturing giants, known as the “Global Manufacturing Barometer”, have developed heavy industry (CAT-US) fell 5.86% to $183.51 a share on Tuesday. Due to the withdrawal from the Russian market, rising operating costs and the strengthening of the U.S. dollar, the company’s revenue in the second quarter was lower than market expectations. In addition, freight and labor costs rose, and the profit margin also shrank.
Airbnb, a multinational hotel reservation platform (ABNB-US) rose 4.62 percent to $116.34 a share. Airbnb reported a new quarterly record with 103.7 million bookings for lodging and travel “experiences” as tourism recovers, revenue soared 58% to $2.1 billion, and the company announced a $2 billion treasury stock plan .
Uber (UBER-US) surged 18.90% to $29.25 per share. Uber delivered a dazzling report card in the second quarter, with revenue soaring 105% to $8.1 billion, much higher than market estimates of $7.4 billion; net loss of $2.6 billion, Uber’s total order volume in the second quarter reached $29.1 billion an all-time high, an annual increase of 33%.
Tesla (TSLA-US) rose 1.11 percent to $901.76 a share. Tesla will hold a shareholder meeting on Thursday (4th), when it will vote on a 3-1 stock split plan and may update Tesla’s electric pickup truck Cybertruck news.
Economic data
- US June JOLTs job openings reported 10.698 million, expected 11 million, the previous value of 11.303 million
Wall Street Analysis
The U.S. second earnings season has been mostly bullish so far, with regarding 78% of S&P 500 companies that have reported beating Wall Street expectations and above the long-term average, according to IBES data.
However, inflation remains a problem, said LH Meyer analyst Derek Tang. Weakness in the economy due to soaring labor costs will hit revenue and potentially eat into profits. The bigger problem is that the market may have misunderstood the Fed’s response to inflation. , that the Fed can reduce inflation to 2% may be wishful thinking.
Mark McCormick, global head of foreign exchange strategy at TD Securities, said the situation in the Taiwan Strait was more in line with the broader risk-off theme, raising concerns regarding global growth, especially if geopolitical tensions and knock-on effects lead to worsening inflation, which would in turn force central banks to In the case of economic slowdown, continue to tighten policy to curb inflation.
The figures are updated before the deadline, please refer to the actual quotation.
