With central banks moving aggressively to fight inflation, recession fears dented investor appetite for risky assets, while Wall Street is expected to usher in a tough earnings season, U.S. stocks opened lower on Tuesday (12th), although they were followed by gains in technology stocks. It rebounded under the lead, but the gains briefly turned black and fell again.
Before the deadline,Dow Jones Industrial Averagerose more than 30 points or nearly 0.11%,Nasdaq Composite Indexdown 0.6%,S&P 500 Indexdown 0.33%,Philadelphia SemiconductorThe index fell 0.18%.
Before the deadline, the five kings of technology were mixed, and Apple (AAPL-US) rose 1.55% in early trade, Meta Platforms (META-US) rose 0.88%, Alphabet (GOOGL-US) rose 0.25%, Amazon (AMZN-US) fell 0.27%, Microsoft (MSFT-US) fell 1.38%. TSMC (TSM-US) ADR rose 1.16% and returned to the top of the 80-yuan mark, with a tentative report of $80.03 per share.
After U.S. stocks closed lower on Monday,S&P 500 IndexandNasdaq 100 futures fell more than 0.5% as traders braced for the second-quarter earnings season, looking for signs of inflation and a recession.
U.S. dollar hovers near 2020 market highs on Covid-19,JPYStronger, underscoring investor caution. at the same time,EURIt briefly traded near par against the dollar before rebounding to erase the day’s losses.
U.S. Treasuries extended gains, with the 10-year U.S. Treasury yield rising to 2.92 percent.On the other hand, European bond markets also rebounded, German bond prices soared, benchmarks 10-year Treasury yieldFalling to the lowest level since May, Germany’s ZEW economic sentiment index plunged to -53.8 in July from -28.0 in June, far below market expectations of -38.3, a record high in 2011EURThe lowest level since the crisis.
The market’s direction will largely depend on upcoming corporate earnings and this week’s U.S. inflation data. Stocks briefly rebounded from this year’s rout, but that was over before the report. Risk appetite may struggle to digest the increasingly bleak earnings outlook and stubborn price pressures pointing to further monetary tightening.
In energy, crude oil prices, along with other industrial commodities, were lower amid subdued risk sentiment.Deadline, due in SeptemberBrent CrudeFutures fell 4.39% to $102.38 a barrel; West Texas crude for August expiration fell 4.8% to $99.10 a barrel.
As of 21:00 on Tuesday (12th) Taipei time:
Stocks in focus:
Pepsi (PEP-US) fell 0.21% to $170.11 a share in early trade
PepsiCo’s US stock announced its second-quarter earnings report before the market. Despite the impact of macroeconomic, geopolitical fluctuations and hot inflation, it still delivered a dazzling report card. Last quarter’s revenue was reported at 20.23 billion US dollars, and adjusted earnings per share were reported at 1.86 US dollars, both better than market expectations of 19.51 billion and 1.74 US dollars. In addition, PepsiCo also raised its full-year revenue forecast to 10%, up from 8% previously.
Goldman Sachs analyst Bonnie Herzog is also bullish on PepsiCo’s prospects, reiterating a “Buy” rating on the stock.
Gap(GPS-US) fell 7.88% to $8.07 a share in early trade
US apparel retailer Gap announced the removal of Chief Executive Sonia Syngal, with executive chairman Bob Martin temporarily taking over the position, because of a problem with Old Navy’s decision-making, which hit sales and profits, after all, the brand accounts for more than half of Gap’s sales. At the same time, Gap also warned that the continued decline in sales will drag down earnings performance.
Pyloten (PTON-US) rose 1.85% to $9.09 a share in early trade
Peloton (PTON-US) said on Tuesday (12th) that the company plans to exit all its own manufacturing operations and instead expand its partnership with Taiwanese manufacturer Rexon Industrial (Rexon Industrial).1515-TW) current partnership to turn around the loss-making business.
Today’s key economic data:
- U.S. June NFIB Small Business Confidence Index reported 89.5, compared with 93.1 previously
Wall Street Analysis:
Kimberly Forrest, founder and chief investment officer at Bokeh Capital Partners, said that a stronger dollar will not only affect earnings this quarter, but more likely to affect revenue prospects in future quarters, which is a big problem.
Deutsche Bank strategist Jim Reid said that market sentiment has become more pessimistic again, and investors are waiting for a number of data and earnings reports this week, which will set the tone for the central bank meeting, especially tomorrow’s inflation data will be released. Market focus.