Target cuts forecast, rekindling recession fears, while U.S. 10-year Treasury yieldAfter breaking the 3% mark yesterday, it remained above this level, putting pressure on technology stocks, and US stocks opened lower on Tuesday (7th).
Before the deadline,Dow Jones Industrial Averagefell more than 200 points or nearly 0.6%,Nasdaq Composite Indexfell nearly 0.7%,S&P 500 Indexfell nearly 0.6%,Philadelphia SemiconductorThe index fell nearly 0.9%.
On the other hand, the Wall Street Journal (WSJ), citing people familiar with the matter, reported that the U.S. Securities and Exchange Commission (SEC), as soon as this fall, proposed to significantly revise the stock market trading process to improve the efficiency and transparency of the stock market, which may subvert the “payment for order flow” (PFOF). )business model.
SEC staff have begun pitching plans to market participants in recent weeks, and SEC Chairman Gary Gensler will detail some potential reforms in a speech Wednesday, people familiar with the matter said. The reform will affect how brokers handle investors’ “market orders”, which account for the majority of retail investors’ transactions, and do not specify the minimum or maximum price investors are willing to pay.
In terms of energy, international oil prices were slightly consolidated, and the market lacked new fundamental news, but investors still need to pay attention to the US inventory data to be released by the American Petroleum Institute later today.
In other news, the Reserve Bank of Australia (RBA) raised interest rates by two yards (50 basis points) today, the largest rate hike in 22 years, surprising the market and warning of further rate hikes in the future; meanwhile, Australian officials are trying to control the soaring inflation.
In the foreign exchange market, the official U.S. employment report for May opened higher, strengthening market expectations for interest rate hikes, driving U.S. government bond yields up, and the international dollar continued to strengthen.Japanese YenThe rally has been particularly strong, with Asian currencies rising above 133 on Tuesday Japanese Yen, hitting a 20-year high.US dollar this monthJapanese YenIt has risen by regarding 3%.
As of 21:00 on Tuesday (7th) Taipei time:
Stocks in focus:
Target Department Store (TGT-US) fell 6.23% to $149.72 a share in early trade
Target warned investors of a near-term hit to earnings, expected to reduce sales of unneeded items, cancel orders and take steps to eliminate excess inventory; the retailer also lowered its profit forecast for the current quarter in response to Lots of items on sale or clearance. Target Department Store cut its earnings for the quarter to 2% from 5.3% previously, but said profit margins will recover to around 6% in the second half of this year.
Pyloten (PTON-US) fell 2.40% to $12.18 a share in early trade
Fitness equipment maker Peloton announced the resignation of CFO Jill Woodworth following four years at the company, and will be replaced by former Amazon (Amazon) CEO on June 13.AMZN-US) and Netflix (NFLX-US) was replaced by former senior Liz Coddington.
Novavax (NVAX-US) rose 3.77% to $49.33 a share in early trade
The U.S. Food and Drug Administration (FDA) review panel will meet today to review an application for a Covid-19 vaccine from Covid-19 vaccine developer Novavax. Novavax shares fell more than 20% following the FDA warned Novavax’s vaccine had a risk of myocarditis.
Today’s key economic data:
- US April trade balance reported – $87.08 billion, expected – $89.5 billion, revised ex – $107.7 billion
Wall Street Analysis:
James Athey, investment director of Aberdeen Asset Management (abrdn), said that although market investors are reluctant to admit it, the outlook for corporate price-earnings ratios and earnings is not optimistic and may be getting worse; economic growth recession, rising interest rates and liquidity A combination of sexual declines is very bad for the stock market.
Laura Cooper, senior investment strategist at BlackRock, said the current debate over “heading for a recession” or a “soft landing” will keep stocks moving in a relative range. The Fed’s policymakers will need to see a dovish stance before the market regains confidence that stocks can continue higher.
A team led by Goldman Sachs strategist Christian Mueller-Glissmann said rising interest rates might pose headwinds on equity valuations, adding to risk concerns regarding slowing economic growth. Equities need to offer strong yields to make them more attractive relative to bonds, as the yield differential between the two has shrunk to the lowest level since the global financial crisis.