2023-05-16 21:19:34
The prospect of debt ceiling negotiations is unclear, companies such as Home Depot have poor financial reports, and U.S. bond yields generally rise.
Selling pressure emerged in energy stocks, as economic recovery worries intensified after China’s economic data in April was weaker than expected. Solar stocks fell broadly. Although the House and Senate passed a bill to overturn the solar panel tariff exemption, it was vetoed by U.S. President Joe Biden on Tuesday.
Microsoft led tech stocks higher on Tuesday after European Union antitrust regulators approved Microsoft’s $69 billion acquisition of Activision Blizzard. AMD is favored by hedge fund funds, and it has restrained some of the decline in semiconductors.
Dow JonesThe closing price fell more than 330 points, and the S & P fell by more than 0.6%.That fingerandfee halfIn the last few minutes of the late trading, they fell sharply and turned black, and both closed down more than 0.1%.
In terms of data, the US Department of Commerce announced on Tuesday that retail sales in April increased by 0.4% month-on-month, which was lower than the market forecast (0.8%), and the previous value was revised up to a decrease of 0.7%. Core retail sales rose 0.4% month-on-month in April, in line with market expectations, and the previous value was revised up to drop 0.5%.
In terms of politics and economy, the United States may default on June 1 at the earliest. U.S. Treasury Secretary Yellen warned on Tuesday that time is running out and the U.S. economy is in jeopardy. He called on Congress to resolve the debt ceiling issue as soon as possible. There is no time to waste.
The debt ceiling meeting between U.S. President Joe Biden and congressional leaders took place on Tuesday. Before the meeting, Biden was optimistic that he and the Republican Party would reach an agreement on the debt ceiling.
News has emerged that Biden has softened his attitude and is willing to discuss the terms of the exchange with Republican House Speaker McCarthy, including the requirement that recipient families be required to find work in some welfare programs, increasing the possibility of reaching a debt ceiling agreement.
In addition, Biden will leave for Hiroshima, Japan on Wednesday (17th) to attend the G7 leaders’ summit, and is expected to cancel his visit to Australia and Papua New Guinea. He will return to the United States this Sunday to continue negotiations on the debt ceiling.
Fed officials have continued to “hawk” recently. Richmond Federal Reserve Bank President Thomas Barkin said that he is not yet convinced that inflation is steadily falling back toward the Fed’s 2% target, adding that the Fed There is an option to raise rates further or to pause them.
Federal Reserve Bank of Cleveland President Loretta Mester said the Fed has yet to raise interest rates to a sufficiently restrictive level given persistently high inflation.
Austan Goolsbee, president of the Federal Reserve Bank of Chicago, a member of the FOMC this year, said that he has not yet decided whether to raise interest rates in June and needs to observe more data.
The United Nations released the “2023 Mid-term World Economic Situation and Prospects” report, which raised the global economic growth forecast for this year by 0.4 percentage points to 2.3%, and is expected to grow by 2.5% next year.
The International Energy Agency (IEA) released its monthly report on Tuesday, raising its forecast for global oil demand this year to 200,000 barrels per day, with total demand reaching 102 million barrels per day, as Chinese demand grew faster than expected and reached a new high, while oil production It is difficult for the country to increase production capacity to meet demand.
The European Union on Tuesday finally approved the world’s first set of rules to comprehensively regulate encrypted assets, which are expected to be implemented from 2024, putting pressure on countries such as the United Kingdom and the United States to catch up.
The performance of the four major indexes on Tuesday (16th):
Focus stocks
The five kings of science and technology received more red. Amazon (AMZN-US) up 1.98%; Meta (META-US) down 2.69%; Apple (AAPL-US) was flat; Alphabet (GOOGL-US) rose 2.57%; Microsoft (MSFT-US) up 0.74%.
Dow JonesConstituent stocks were generally weak. Nike (OF THE US) fell 2.8%; 3M (MMM-US) down 2.47%; Amgen (AMGN-US) down 2.42%; Chevron (CVX-US) down 2.35%; Salesforce (CRM-US) rose 0.6%.
fee halfMore than half of the constituent stocks closed black. AMD (AMD-US) rose 4.19%; Huida (NVDA-US) up 0.90%; Micron (MU-US) down 1.41%; Applied Materials (AMAT-US) down 0.16%; Texas Instruments (TXN-US) down 1.14%; Qualcomm (QCOM-US) down 2.34%.
Taiwan stock ADR was nearly flat. TSMC ADR (TSM-US) rose 0.26%; ASE ADR (ASX-US) flat; UMC ADR (UMC-US) flat; Chunghwa Telecom ADR (CHT US) up 0.22%.
Corporate News
The U.S. Federal Trade Commission (FTC) is rumored to be preparing a lawsuit to block Amgen’s acquisition of biotech company Horizon Therapeutics. Amgen (AMGN-US) shares fell more than 2%, Horizon Therapeutics (HZNP-US) plummeted 14.17 percent and became a major headwind for stocks on Tuesday.
AMD (AMD-US) surged 4.19% to US$101.48 per share. The positions of the world’s largest hedge funds in the first quarter were exposed one after another, AMD was favored by funds, and Duquesne Capital, a well-known Wall Street investor, Stanley Druckenmiller’s capital increased AMD in the first quarter. The well-known hedge fund Third Point also increased its holdings of AMD positions.
Soros Fund Management, headed by George Soros, cut its holdings of Tesla and Rivian in the first quarter. Tesla (TSLA-US) still received a dividend of 0.10% to $166.52 per share. Rivian (RIVN-US) fell 2.68 percent to $13.08 a share.
Home Depot (HD-US) closed down 2.15 percent at $282.33 a share. Home Depot posted its biggest revenue loss in more than 20 years last quarter and revised down its forecast for the year as consumers put off home renovations and cut back on big-ticket purchases such as patio sets and grills.
Boeing (BA-US) fell 0.94% to $200.87 per share. Singapore Airlines canceled Boeing’s order for eight 737-8 passenger jets. The reason for adjusting the order is to comply with the long-term fleet renewal strategy and support its projected operational needs.
British telecommunications company Vodafone (Vodafone) (VOD-US) tumbled 8.73% to $10.24 per share. The company said results were disappointing and it expects to cut 11,000 jobs over three years to streamline the telecoms group and restore its competitive edge.
Economic data
- U.S. April retail sales reported an annual rate of 1.6%, expected 4.2%, and the previous value of 2.42%
- The monthly rate of U.S. retail sales in April was reported at 0.4%, expected 0.8%, and the previous value was -0.7%
- U.S. core retail sales in April reported 0.4%, expected 0.4%, previous value – 0.5%
- The monthly rate of industrial production in the United States in April was reported at 0.5%, expected – 0.1%, and the previous value was 0%
Wall Street Analysis
Amar Reganti, fixed income strategist at Hartford Funds, said: “Investors around the world are ‘fish’ swimming in the ocean of US government debt, and the dollar is like ‘water’. If the US government voluntarily defaults, they have almost nowhere to hide.”
“We are concerned that the stock market is not fully pricing in the risk of a bipartisan failure in Congress to reach a deal on the debt ceiling, which would be catastrophic for the U.S. economy,” said Loop Capital analyst Anthony Chukumba.
Marko Kolanovic, a strategist at JPMorgan Chase & Co., warned: “The U.S. debt ceiling impasse is a major headwind that threatens the outlook for the stock market and may trigger a sell-off in U.S. stocks. It is recommended that investors should still reduce their holdings of U.S. and European stocks because a possible political deadlock will increase economic growth. recession risk.”
The numbers are all updated before the deadline, please refer to the actual quotation
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