The market has ushered in a busy week this week, with heavy technology stock earnings reports, the Federal Reserve (Fed) interest rate decision and the US second-quarter GDP data coming out one following another, US stocks were mixed on Monday (25th),DowS&P closed slightly higher,that fingerIt traded lower on the eve of earnings reports from tech giants such as Apple and Alphabet.
Traders were more cautious following stocks rallied last week, with the S&P 500 edged higher amid the lowest intraday volatility and volume of the year. After escaping into a bear market earlier this year,S&P 500 IndexTrying to make a comeback, it is now down 9% from its year-to-date lows.
This week, the Fed’s July interest rate meeting has attracted global attention. The recent softening of the housing market, the slight rise in the number of people receiving unemployment benefits, and the slowing of hiring by technology companies indicate that the economy has felt the pressure of interest rate hikes, but following raising interest rates by 3 yards in June, the Fed is expected to approve another rate hike. Interest rate 3 yards, and hinted to continue to take interest rate hikes.
nearly one-third ofS&P 500 IndexConstituent earnings reports are also due this week, including Apple, Alphabet and Microsoft. Investors pay close attention to the company’s Q2 performance, as well as its future operating outlook and profit forecast.
Tech stocks weighed on the broader market ahead of earnings reports, with Meta Platforms (META-US) fell 1.55%, Amazon (AMZN-US) fell 1.05%, Apple (AAPL-US), Microsoft (MSFT-US) and Alphabet (GOOGL-US) were slightly lower.
Boosted by the sluggish dollar trend, international oil prices rose on Monday, and energy stocks became the best performing sector. Marathon Oil(MRO-US) and APA Corp (WHAT-US) both closed up more than 6%, Occidental Petroleum (OXY-US) closed up 5.5%, Chevron (CVX-US) led the gainsDow Jonesclosed up nearly 3%.
In terms of the epidemic, data from Johns Hopkins University in the United States shows that the number of confirmed cases worldwide has so far exceeded 570 million, and the number of deaths has exceeded 6.38 million. More than 11.9 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Monday (25th):
Focus stocks
The five kings of science and technology are all in ink. apple (AAPL-US) fell 0.74%; Meta Platforms (META-US) fell 1.55%; Alphabet (GOOGL-US) fell 0.36%; Amazon (AMZN-US) fell 1.05%; Microsoft (MSFT-US) fell 0.59%.
Dow JonesConstituent stocks were mixed. Chevron (CVX-US) rose 2.98%; Traveler Group (TRV-US) rose 2.28%; the development of heavy industry (CAT-US) rose 1.79%; UnitedHealth (UNH-US) rose 1.55%; McDonald’s (MCD-US) fell 1.42%; Salesforce (CRM-US) fell 2.84%.
half feeOnly three constituent stocks received dividends. Wolfspeed(WOLF-US) rose 1.26%; ASML (ASML-US) rose 0.88%; Broadcom (AVGO-US) rose 0.12%; Intel (INTC-US) fell 0.10%; Qualcomm (QCOM-US) fell 0.29%; Texas Instruments (TXN-US) fell 0.43%; NXP (NXPI-US) fell 0.58%; AMD (AMD-US) fell 0.64%; Yingcai (AMAT-US) fell 0.66%; Huida (NVDA-US) fell 1.70%; Micron (MU-US) fell 1.86%; Marvell Technology (MRVL-US) fell 2.52%.
Taiwan stock ADR was the weakest with UMC. TSMC ADR (TSM-US) fell 0.02%; ASE ADR (ASX-US) rose 0.18%; UMC ADR (UMC-US) fell 2.97%; Chunghwa Telecom ADR (CHT US) rose 0.78%.
Corporate News
Walmart (WMT-US) revised down its earnings outlook for Q2 and fiscal 2023 following the bell on Monday, as inflation led consumers to spend more on essentials, squeezing spending on apparel, electronics and other products. Walmart closed down 0.14% on Monday, following the news dragged its shares down nearly 10% following the market closed.
News of Walmart’s cut in profit outlook dragged other retailers, with Target (TGT-US) fell more than 5 percent in following-hours, with Amazon and Macy’s (M-US) fell nearly 4%, Costco (COST-US) fell more than 3%.
Apple closed down 0.74% on Monday. The company has announced a rare promotion in China, which runs from July 31 to August 1, offering discounts on iPhone 13, 12 and SE series models, as well as AirPods, Apple Watch, and more, before the launch of a new generation of products.
Intel (INTC-US) closed inching down 0.1 percent, following the company announced that it had joined forces with MediaTek (2454-TW) to establish a strategic partnership to provide foundry services for the latter.
Supported by strong demand for automobiles and IoT terminals, NXP, a major automotive semiconductor manufacturer, announced better-than-expected Q2 earnings following the market on Monday, and its Q3 revenue outlook was good, but the stock price still fell nearly 2% following the market.
Economic data
- US July Dallas Fed manufacturing index reported -22.6, expected -12.5, the previous value -17.7
Wall Street Analysis
Sam Stovall, chief investment strategist at CFRA Research, said: “Investors may be thinking that Thursday’s GDP report will reflect the Q2 economic downturn, which is an unofficial signal of a recession. The Fed is expected to announce a rate hike of 3 yards this week, and it may also be Further rate hikes provide a more dovish tone.”
Nicholas Colas, co-founder of DataTrek Research, said: “This week has been a make-or-break moment for investors’ confidence in business, with the U.S. economy already feeling the pressure of repeated rate hikes. The extent to which the economic slowdown is reflected in corporate earnings.”
The Fed’s rate decision comes as U.S. second-quarter gross domestic product is also due, and investors are skeptical that the Fed will be able to control inflation without a recession. More than 60 percent of the 1,343 respondents to the Bloomberg MLIV Pulse survey thought the odds were low or zero.
Bloomberg chief U.S. economist Anna Wong said inventories and durable goods orders through Wednesday might help clarify whether a recession is on the horizon, and she expects both indicators to weigh on the U.S. economy.
Ed Yardeni, president of Yardeni Research, is more optimistic, saying the worst of the bear market is over. “The real issue is earnings season, however, earnings season has been going well so far, it hasn’t really hit the stock market, and the stock market is doing well,” he said.
The figures are updated before the deadline, please refer to the actual quotation
