2023-07-10 21:47:32
Before the release of key inflation data, the main US stock index opened mixed on Monday (10th). Despite the poor performance of the technology giants, Meta’s stock price has been smooth sailing due to the blessing of its “Threads” with more than 100 million users.
With the Federal Reserve hawks and doves making comments one following another,Dow JonesClosed on Monday with nearly 210 points in red,That fingerAnd S&P edged up more than 0.18%,fee halfSoared more than 2%, but TSMC ADR and Huida underperformed.
In terms of data, key inflation reports such as the U.S. June Consumer Price Index (CPI) and Producer Price Index (PPI) will be released on Wednesday and Thursday, respectively, in order to judge the Fed’s interest rate policy path and recession risk rising signal.
Before the release of key data, China’s CPI dropped to zero in June, and PPI also fell further, highlighting continued weak demand and exacerbating investors’ concerns regarding deflation.
In terms of politics and economy, three Fed officials delivered an important speech on Monday. Loretta Mester, president of the Federal Reserve Bank of Cleveland and known as the “Eagle Queen,” said that underlying inflationary pressures are still strong, The U.S. economy remains resilient, which might prompt the Federal Reserve to raise interest rates further. San Francisco Federal Reserve Bank President Mary Daly reiterated on Monday that two more rate hikes this year may be needed to cool inflation.
In contrast, Raphael Bostic, president of the Federal Reserve Bank of Atlanta, was dovish. He said on the same day that the current policy is clearly in a restrictive range, and inflation can be brought back to the 2% target without continuing to raise interest rates.
U.S. Treasury Secretary Yellen said over the weekend that she does not rule out the possibility of a U.S. recession, while judging that U.S. inflation remains too high.
Artificial intelligence (AI) is coming in full swing, and its tentacles have extended to various fields. The White House will report the confidentiality of AI to US senators on Tuesday, and lawmakers are considering legislative safeguards for AI.
In terms of geopolitics, U.S. Treasury Secretary Yellen concluded her four-day visit to China on Sunday (9th). She said that the trip had a total of 10 hours of talks with senior Chinese officials, which would help stabilize the relationship between the two countries. She emphasized to China that, Dispersing critical supply chains does not equate to economic decoupling.
The United States is actively promoting the construction of a safe supply chain without China. Many multinational companies have begun to stay away from China. At the same time, in order to become the world’s factory, India frequently beckons Taiwanese businessmen to fight for semiconductors. However, Taiwan’s Hon Hai Group (2317-TW) said on Monday that it had pulled out of a $19.5 billion joint venture with Indian metals and oil group Vedanta, in a major blow to Prime Minister Narendra Modi’s chipmaking policies.
Performance of the four major indexes on Monday (10th): 7 of the 11 major S&P sectors rose, led by industrials, health care and energy, while communication services, utilities and information technology led the decline. (Picture: finviz) Focus stocks
The five kings of science and technology generally closed lower. Amazon (AMZN-US) down 2.04%; Meta (META-US) rose 1.23%; Apple (AAPL-US) down 1.09%; Alphabet (GOOGL-US) down 2.54%; Microsoft (MSFT-US) down 1.60%.
Dow JonesConstituent stocks led by Intel. Verizon Communications (VZ-US) down 2.12%; Intel (INTC-US) rose 2.79%; Home Depot (HD-US) rose 2.47%; Amgen (AMGN-US) up 2.78%: Walgreens Boots (WBA-US) rose 2.37%.
fee halfComponent stocks generally closed higher. Applied Materials (AMAT-US) rose 0.71%; AMD (AMD-US) up 0.36%; Micron (MU-US) rose 3.02%; Texas Instruments (TXN-US) rose 3.30%; Qualcomm (QCOM-US) rose 1.02%; Huida (NVDA-US) down 0.76%.
Taiwan stock ADRs were mixed. TSMC ADR (TSM-US) down 0.46%; ASE ADR (ASX-US) up 0.66%; UMC ADR (UMC-US) rose 1.29%; Chunghwa Telecom ADR (CHT US) down 0.60%.
Corporate News
Goldman Sachs recently announced 20 AI beneficiary stocks, including Microsoft, Alphabet, Amazon, Huida, TSMC and other technology giants. However, the market’s reaction was lukewarm, with tech giants mostly down on Monday, with TSMC’s ADR (TSM-US) fell 0.46% to US$99.77 per share, the conversion price was 626.16 yuan, and the discount rate was 10.82%.
Meta (META-US) rose 1.23% to $294.10 per share. Facebook parent company Meta’s app “Threads” has surpassed the 100 million user mark in just five days following its launch, and data shows traffic to rival Twitter is slowing. Wall Street investment bank Evercore ISI said that although Threads is still in its infancy, it is expected to contribute considerable revenue in the next few years.
Used car retailer Carvana (CVNA-US) soared 16.37% to $34.27 per share, up more than 640% so far this year, continuing to inflict a lot of pain on bears following the company announced that rising demand for electric vehicles might boost its earnings growth.
Novavax (NVAX-US) soared 29.46% to $9.36 per share. Novavax announced it will receive $350 million in Canadian funding to address the forfeiture of certain doses of its COVID-19 vaccine that were previously scheduled to be delivered. In addition, the two parties will modify the pre-purchase contract following the sharp drop in global demand has caused a large number of new crown vaccines to go unused.
Icahn Enterprises (IEP-US) soared 20.20% to $34.69 per share. Carl Icahn, a well-known activist investor with the title of “Wolf King of Wall Street”, finalized a loan agreement with the bank to unlink Icahn’s personal loan from Icahn’s corporate stock price. According to sources, Icahn has agreed to increase collateral and Make a plan to repay the loan in full within three years.
Economic data U.S. wholesale inventory growth rate in May reported 0%, expected – 0.1%, previous value – 0.3% U.S. May wholesale inventory sales growth rate reported – 0.2%, expected 0.3%, previous value 0.2% Wall Street analysis
Citigroup strategists on Monday downgraded U.S. and U.K. equities to “neutral” from “overweight,” while upgrading European equities to “overweight.” Citigroup said that as the euphoria of AI enters the digestion stage, the rise in US stocks may retreat. Recession risk remains high, but investors can still be prepared to “buy the dip.”
Quincy Krosby, chief global strategist at PL Financial, mentioned: “The market is clearly ready for the new earnings season, but investors are also highly focused on this week’s data and Fed officials’ speeches.”
Stephen Innes, managing partner of SPI Asset Management, mentioned: “Given the strong performance of technology stocks this year, AI has attracted attention, although the timing and ability of S&P 500 companies to generate incremental profits from AI remain uncertain. As such, corporate forecasts and high-level commentary will help investors identify AI enablers, scalers, and long-term beneficiaries.”
Morgan Stanley analyst Michael Wilson pessimistically predicted that in view of rising stock valuations, rising interest rates and reduced liquidity, corporate financial forecasts will be more important than usual, and earnings expectations for the second half of the year are expected to be further lowered.
The numbers are all updated before the deadline, please refer to the actual quotation
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