With the strong retail sales data released by the United States today, China’s relaxation of some anti-epidemic restrictions and the possible loosening of regulatory measures on technology stocks, corporate financial reports and other news have driven market optimism, with large technology companies and growth companies leading the gains, US stocks on Tuesday ( 17) opened higher and higher.
Before the deadline,Dow Jones Industrial Averageup more than 250 points, or nearly 0.8%,Nasdaq Composite Indexrose nearly 2%,S&P 500 Indexrose more than 1%,Philadelphia SemiconductorThe index rose 3.5%.
Large technology companies and growth companies such as Microsoft (MSFT-US),apple (AAPL-US), Huida (NVDA-US), Tesla (TSLA-US) and other shares opened 1.5% to 2.8% higher.
U.S. stocks have been fluctuating wildly recently, with investors assessing market trends amid concerns regarding the economy, geopolitics and the new crown. With the Federal Reserve raising interest rates, the outlook for the U.S. economy has worried many investors the most, with data released a few days ago by the Federal Reserve Bank of New York showing that factory activity in New York fell in May and shipments fell at the fastest pace since the early days of the pandemic. , affecting investor confidence.
However, the latest data released by the U.S. Commerce Department today showed that the economy is still showing resilience. U.S. consumers increased retail spending for four consecutive months in April. In addition, some stores in Shanghai, China began to reopen this week, adding to the market’s optimism.
Fed Chairman Powell made a speech today, the market will be closely watching the views on interest rate hikes and inflation, and find clues regarding the future central bank’s decision-making trends, and will also continue to evaluate the impact of the Russian-Ukrainian war and China’s economic prospects. Earlier, St. Louis Fed President Bullard (James Bullard) made a speech emphasizing that inflation is the most pressing issue facing the Fed.
Even with U.S. stock futures higher ahead of Tuesday’s open, many investors still expect more volatility ahead.byNasdaqTaking the index as an example, in the 11 trading days in May, except for two trading days, the increase or decrease of other trading days was more than 1%.
In terms of energy, international oil prices were still affected by the EU’s oil ban on Russia, and the West Texas crude oil futures expiring in June were the same as those expiring in July.Brent CrudeFutures rose 0.21% and 0.2%, respectively. At the same time, investors are also watching for the high demand that China is expected to bring regarding easing its epidemic containment measures.
On the corporate side, Home Depot (HD-US) delivered a dazzling financial report, with first-quarter revenue of US$38.91 billion and earnings per share of US$4.09, which were both better than market expectations of 36.72 billion and US$3.68, and raised the full-year financial forecast; China-concept stock JD.com benefited The stock surged 9% premarket amid a surge in demand during the lockdown, an excellent report on revenue in the last quarter, and the prospect of loosening Chinese regulators’ crackdown on the tech industry.
As of 21:00 on Tuesday (17th) Taipei time:
Stocks in focus:
Citi (C-US) rose 6.87% to $50.72 a share in early trade
As of the end of March, Buffett’s Berkshire Holdings Inc (BRK.A-US) added more than 55 million shares of Citi, worth $2.95 billion, according to Citi filings. Citigroup shares rose more than 5 percent before U.S. markets opened.
Jingdong (JD-US) rose 3.94% to $53.56 a share in early trade
Chinese e-commerce company JD.com’s revenue rose 18% year-on-year in the last quarterRMB 239.7 billion yuan, beating market expectations, mainly due to the increase in demand due to China’s blockade measures, the news sent the stock up 9% in premarket trading. In addition, China will ease regulatory restrictions on technology stocks, and JD.com is expected to be one of the beneficiaries.
Lordstown(RIDE-US) rose 1.54% to $2.31 a share in early trade
Adam Kroll, chief financial officer of electric start-up Lordstown, said operational concerns will persist until the company raises enough capital and achieves a high market value. The company might issue a “going concern” alert as early as June 2021. Lordstown said last week it had completed the sale of part of its Ohio assembly plant to Taiwan’s Hon Hai (2317-TW) and signed a contract for OEM production with Hon Hai.
Today’s key economic data:
- U.S. retail sales rose 0.9% in April, 0.9% expected, and the previous 1.4%
- U.S. retail sales in April reported an annual growth rate of 8.19%, compared with the previous value of 7.34%
- The monthly growth rate of core retail sales in the United States in April was 0.6%, expected 0.4%, and the previous value was 2.1%
- U.S. industrial production monthly growth rate in April is expected to be 0.4%, the previous value was 0.9%
Wall Street Analysis:
Craig Erlam, senior market analyst at Oanda, said it was easy to spook investors with a slew of economic data to speak to Fed officials this week, but for now, investors may think a lot of bad news has been priced in.
Risk assets are struggling to hold their ground following U.S. stocks fell for seven straight weeks, fueling concerns regarding a global economic slowdown and monetary tightening, analysts at ING said.
