The U.S. stock market earnings season was mixed, and the bond market’s biggest economic recession alarm rang. U.S. stocks couldn’t continue their two-day rally.Dow Jonesdown nearly 100 points,that fingerDown 0.85%, Netflix’s stock soared more than 13% due to the bullish earnings report.
In terms of data, the U.S. Census Bureau released data on Wednesday that U.S. housing starts fell more than expected in September, with aggregate housing down 13.1%, highlighting that aggressive monetary policy tightening has significantly weakened the housing market.
10-Year U.S. Treasury YieldIt hit 4.136%, the highest since July 23, 2008. The inversion of the 10-year and 2-year U.S. Treasury yield curve has intensified, and the warning signs of a future recession have become more and more clear. “Bloomberg”‘s recent economic model forecast shows that the probability of the US economy falling into recession in the next 12 months has reached 100%.
In political and economic news, the Federal Reserve released its latest “Beige Book” report on Wednesday, pointing out that economic activity in the United States expanded slightly and price growth remained high, despite some loosening in several regions. Employment continued to grow, with cooling in some regions.
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said the Fed needs to raise interest rates further as inflation remains high.
St. Louis Federal Reserve Bank President James Bullard said on Wednesday that the Fed should not react to the decline in stocks even as U.S. stocks have tumbled this year, and that the market is pricing in an expected rate hike from the Fed, which is a good idea. According to the news, the terminal rate should be close to 4.5% or 4.75%, which will make 2023 a “anti-inflation” year.
Global inflation continued to deteriorate. The UK consumer price index (CPI) in September increased by 10.1% year-on-year, hitting a 42-year record high. The EU’s overall inflation rate reached 11%, higher than the UK, which strengthened the market’s interest in the UK and the European Central Bank. In the future, it is expected to raise interest rates sharply and start to shrink the balance sheet as soon as possible.
The situation in Russia and Ukraine is grim, and rising oil prices made energy stocks the only sector in the red on Wednesday, although US President Biden announced the release of another 15 million barrels of strategic petroleum reserves (SPR), calling for companies to return lower energy costs to consumers. By.
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 626 million, and the number of deaths has exceeded 6.57 million. More than 12.7 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Wednesday (19th):
Focus stocks
The five kings of technology were mixed. apple (AAPL-US) rose 0.077%; Meta (META-US) rose 0.32%; Alphabet (GOOGL-US) fell 1.13 percent; Amazon (AMZN-US) fell 1.11 percent; Microsoft (MSFT-US) fell 0.85%.
Dow JonesConstituent stocks received more black. The Home Depot (HD-US) fell 3.36 percent; Dow Chemical (DOW-US) fell 2.7 percent; JPMorgan (JPM-US) fell 1.96%; Traveller (TRV-US) rose 4.44 percent; Chevron (CVX-US) rose 3.24%.
half feeConstituent stocks generally closed in the red. Qualcomm (QCOM-US) rose 1.47%; AMD (AMD-US) fell 1.19%; NVIDIA (NVDA-US) rose 0.70%; Applied Materials (AMAT-US) rose 2.70%; Texas Instruments (TXN-US) rose 0.75%; Micron (MU-US) rose 0.91%.
Taiwan stock ADRs fluctuated with each other. TSMC ADR (TSM-US) fell 0.08%; ASE ADR (ASX-US) rose 0.21%; UMC ADR (UMC-US) fell 0.51%; Chunghwa Telecom ADR (CHT US) fell 1.18%.
Corporate News
The Wall Street Journal quoted sources as saying that TSMC, the leading wafer foundry, is considering expanding its production capacity in Japan in an attempt to reduce geopolitical risks. TSMC ADR (TSM-US) fell 0.08% to US$63.66 per share, with a discount-to-premium ratio of 3.09% and a conversion price of RMB407.74.
Tesla (TSLA-US) closed 0.84% in the red, and its shares plunged more than 4% after hours. Tesla announced its third-quarter financial report after the market. Adjusted net earnings per share were $1.05, better than analysts’ expectations, but revenue reached $21.45 billion, which was lower than expected, and gross profit margin was stable at 27.9%. The target of 50% growth, and the delivery of Tesla’s electric pickup “Cybertruck” in December.
Dutch semiconductor equipment manufacturer ASML (ASML) (ASML-US) rose 6.27 percent to $424.02 a share. Esmore’s financial report for the third quarter of the 2022 fiscal year released before the market on Wednesday outperformed market expectations, and new orders also hit a new high.
Video streaming giant Netflix (NFLX-US) surged 13.09 percent to $272.38 a share. Netflix added 2.41 million new subscribers globally in the third quarter, and predicts that it is expected to add another 4.5 million subscribers in the fourth quarter, reversing the decline in the number of subscribers for the second consecutive quarter.
United Airlines (UAL-US) received a 4.97% dividend to $39.10 per share.United reported better-than-expected third-quarter earnings and expected another profit by the end of the year, noting that consumer interest in travel shows no signs of slowing despite high ticket prices
Abbott (ABT-US) fell 6.57% to $98.11 per share. Abbott’s latest financial report showed net sales of $10.4 billion, down from $10.93 billion in the same period last year. International medical device sales growth was lower than expected, mainly due to the strong dollar and Chinese supply. Chain blow.
Economic data
- The initial value of the monthly growth rate of building permits in the United States in September was reported at 1.4%, expected to be 3.8%, and the previous value was -8.5%
- The initial value of the total annualized total number of construction permits in the United States in September reported 1.564 million units, the expected 1.53 million units, and the previous value of 1.542 million units
- The annualized monthly rate of new housing starts in the United States in September was -8.1%, expected -4.1, the previous value was 13.7%
- The annualized total of new housing starts in the United States in September reported 1.439 million units, expected 1.475 million units, and the previous value of 1.566 million units
Wall Street Analysis
“With Fed policy still tight and bond yields so high, extending the rally seems like a daunting task,” said Nick Colas, co-founder of DataTrek Research.
Craig Johnson, chief market technician at Piper Sandler, said: “Signs of overselling have recently supported the stock market rally, and from a technical standpoint, the risk of another scam appears to be high because there isn’t enough evidence that the stock market has fully bottomed, but it can’t be ruled out. There is a possibility of a sharp rebound at the end of the year.”
The figures are updated before the deadline, please refer to the actual quotation.