U.S. stocks rose last week on upbeat corporate earnings as China andEURThe poor performance of the regional manufacturing PMI has exacerbated the market’s worries regarding a recession. At present, investors are waiting for the manufacturing data to be released by the United States later. US stocks opened lower on Monday (1st).
Before the deadline,Dow Jones Industrial Averagedown nearly 100 points or 0.3%,Nasdaq Composite Indexdown nearly 40 points or nearly 0.3%,S&P 500 Indexdown 0.35%,Philadelphia SemiconductorThe index fell 0.22%.
The US will release the ISM manufacturing index later, which is expected to be 52, weaker than the previous value of 53, while the US dollar fell once morest the Group of 10 (G10) currencies. The final value of the US Markit Manufacturing PMI released on the same day was 52.2, slightly lower than the expected 52.3 and less than the previous value of 52.7.
In terms of energy, due to the poor economic data in China, the manufacturing PMI in July fell below the 50 line of prosperity and decline, and the Caixin PMI was also lower than expected, exacerbating market concerns that the global economic slowdown may weaken demand, causing international oil prices to fall. . U.S. West Texas crude futures fell nearly 7% in July to below $96 a barrel, the first consecutive monthly decline since the end of 2020.
In addition, IHS Markit announced on the same dayEURThe final value of the regional PMI data showed that the final value of the manufacturing PMI fell from 52.1 in June to 49.8 in July, an increase of 0.2 from the initial value but still below the line of prosperity and decline, hitting a new low since June 2020.
Traders expect the Fed to reduce its fight once morest inflation following data showed U.S. economic growth contracted in the second quarter, opting for a slower pace of rate hikes. While that sentiment propelled markets to turn around in July following a record-breaking first half, some Fed officials over the weekend sought to reinforce messages that higher interest rates are needed to remove price pressures and to downplay recession risks.
In terms of political and economic news, Nancy Pelosi, Speaker of the U.S. House of Representatives, opened her Asia tour on Monday, and the first stop was a dialogue with Singaporean Prime Minister Lee Hsien Loong, President Halimah Yacob and other cabinet members. importance.
The two sides also discussed the war in Ukraine, tensions between Taiwan and China, and climate change. Lee Hsien Loong emphasized “the importance of stable U.S.-China relations to regional peace and security,” apparently in response to comments that Pelosi was considering a visit to Taiwan.
As of 21:00 on Monday (1st) Taipei time:
Stocks in focus:
Boeing (BA-US) rose 3.27% to $164.51 a share in early trade
Boeing is expected to vote on Wednesday on a new labor agreement that would temporarily avoid today’s strike crisis at three defense manufacturing plants. Separately, the U.S. Federal Aviation Administration (FAA) has approved amendments to inspection protocols that would allow Boeing to resume deliveries of the 787 Dreamliner, sources said.
NIO (NIO-US) rose 2.86% to $20.30 a share in early trade
Chinese electric car maker NIO announced that it delivered 10,052 vehicles in July, up 26.7% year-on-year. It also announced that it will build its first overseas factory in Hungary in September to produce power products for the European market.
Alibaba (BABA-US) fell 0.57% to $88.86 a share in early trade
Chinese e-commerce giant Alibaba has been included in the scheduled delisting list for failing to meet the review requirements of the U.S. Securities and Exchange Commission (SEC), unless it must submit defense evidence before August 19 to prove that it has no reason to be delisted. Otherwise, it will be included in the list of confirmed delisting. In this regard, Alibaba said that it will strive to maintain its listing status on the New York Stock Exchange and the Hong Kong Stock Exchange.
The U.S. passed the Foreign Company Accountability Act (HFCAA) last year. HFCAA requires U.S.-listed foreign companies to be delisted if they fail to get U.S. regulators to check their audit papers for three consecutive years. Inspection” year.
Today’s key economic data:
- The final reading of the U.S. Markit Manufacturing PMI in July was 52.2, 52.3 expected and 52.7 previously
- US July ISM manufacturing index is expected to be 52, the previous value was 52.7
Wall Street Analysis:
Bank of America strategists said that so far, the U.S. second-quarter earnings season has brought surprises, but the stock market has not yet bottomed out. Second-quarter earnings per share on US stocks beat expectations by 3% to $56.87, while the consensus estimate was $55.35.
“Overall, the results were better than initially feared, especially with most guidance beating consensus rather than undercutting expectations, which was a big surprise,” the analyst said, warning investors once morest placing bets June was a low for U.S. stocks and reminded that a bear market always ends with a rate cut by the Fed, which is unlikely until 2023.
James Athey, head of investment at abrdn, said that a series of very weak data just because of falling interest rates is seen as bullish for the stock market, which shows that the Fed’s policy is absolutely dominant in driving investor behavior. He also said that unless the Fed works miracles , otherwise the bear market will never end.
