The U.S. Department of Labor announced on Friday (9th) that the U.S. November producer price index (PPI) was higher than expected. Before the Federal Reserve (Fed) holds an interest rate meeting next week, investors’ risk aversion increased, the dollar strengthened, and U.S. stocks After the market opened, it fluctuated within a narrow range, and energy stocks were the most vulnerable stocks on the market.
All four major indexes were out of ink on Friday,Dow Jonesclosed down more than 300 points on Friday,That fingerS&P andfee halfThe index fell more than 0.7%, and Lululemon plummeted more than 10% due to poor financial forecasts. TSMC’s ADR closed with a small drop, even though TSMC’s November revenue hit a record high.
Recession fears came into focus this week following a deterioration in the U.S. Treasury yield curve, weighing on stocks. The main U.S. stock index has swallowed all black this week,Dow JonesWeekly fell 2.8%, the S&P fell 3.4% for the week,That fingerIt fell 4% for the week.
The Federal Open Market Committee (FOMC) meets on December 13-14. Prior to this, the November Producer Price Index (PPI) annual and monthly growth rates announced by the U.S. Department of Labor on Friday rose to 7.4% and 0.3% respectively, both higher than market expectations of 7.2% and 0.2%, highlighting inflation The pressure is still there.
However, the growth rate of core PPI has also increased significantly. Michigan consumer confidence index improved in December, while inflation expectations fell to a 15-month low, slightly easing market tension.
Investors will pay close attention to the November consumer price index (CPI), which will be released next Tuesday, for a more comprehensive understanding of inflation in November, which will provide new clues to the Fed’s monetary tightening plan.
According to the CME’s FedWatch tool, traders predict that the probability of the Fed’s rate hike of 3 yards in December is more than 77%, and the probability of raising interest rates to more than 5% – 5.25% in June next year is more than 55%.
According to a Bloomberg survey, economists mostly predict that the Federal Reserve will keep the federal funds rate at a high level throughout 2023, extinguishing market expectations that the Fed will cut interest rates in the second half of next year.
JPMorgan Chase & Co. released a report stating that although the Federal Reserve may raise the terminal interest rate to 6.5% next year, the first time in 22 years, given the considerable decline in US stocks in 2022, the downside is limited.
The novel coronavirus pneumonia (COVID-19) global epidemic continues to spread. Before the deadline, the Johns Hopkins University (Johns Hopkins University) data pointed out that the number of confirmed cases worldwide has exceeded 648 million, and the number of deaths has exceeded 6.65 million. More than 12.7 billion doses of vaccines have been administered in 184 countries around the world.
The performance of the four major US stock indexes on Friday (9th):
Focus stocks
Among the five kings of science and technology, only Meta is the strongest. apple (AAPL-US) down 0.34%; Alphabet (GOOGL-US) down 0.94%; Microsoft (MSFT-US) down 0.80%; Meta (META-US) rose 0.49%; Amazon (AMZN-US) fell 1.39%.
Dow JonesConstituent stocks were generally weak. Chevron (CVX-US) fell 3.19%; Amgen (AMGN-US) down 2.42%; Wal-Mart (WMT-US) down 2.33%; Merck (MRK-US) down 1.87%; Disney (DIS-US) rose 0.9%.
fee halfComponent stocks were almost all down. NVIDIA (NVDA-US) down 0.98%; Applied Materials (AMAT-US) fell 1.17%; Texas Instruments (TXN-US) down 1.19%; Micron (MU-US) down 0.60%; Intel (INTC-US) down 0.70%; Qualcomm (QCOM-US) down 2.22%; AMD (AMD-US) down 2.67%.
Taiwan stock ADR received more black. TSMC ADR (TSM-US) down 0.14%; ASE ADR (ASX-US) fell 1.34%; UMC ADR (UMC-US) down 1.25%; Chunghwa Telecom ADR (CHT US) up 0.50%.
Corporate News
TSMC ADR (TSM-US) fell 0.14% to US$80.69 per share, with a discount or premium of 2.64% and a conversion price of 494.23 yuan. The leading wafer foundry TSMC announced on Friday that its consolidated revenue in November soared to 222.706 billion yuan, benefiting from the continued increase in demand for 5nm from smartphones and high-efficiency computing. Foreign investors believe that TSMC’s November revenue will be a short-term peak. It is hoped that this quarter’s revenue forecast will reach the mark, and it is expected to break through the financial forecast for the whole year.
apple (AAPL-US) edged down 0.34% to $142.16 per share. Swedish network equipment maker Ericsson said on Friday it had reached a multi-year global patent licensing agreement with Apple, ending a year-long legal dispute over licensing fees for 5G wireless patents.
Tesla (TSLA-US) bucked the trend and rose 3.23% to $179.05 per share. Archyde.com reported on Friday, citing an internal memo seen by two sources, that Tesla will suspend Model Y assembly at its Shanghai plant from Dec. 25 to Jan. 1 next year. The memo details the latest production plans for Tesla’s Shanghai plant.
Yoga and high-priced sportswear giant Lululemon (Lululemon) (LULU-US) fell 12.85 to $326.39 per share on Friday. Lululemon announced its third-quarter earnings report following the close on Thursday. Both revenue and profit beat Wall Street’s expectations, but inventory surged in the third quarter and earnings forecasts for the fourth quarter were weak.
Netflix (NFLX-US) strengthened 3.14% to US$320.01 per share. Wells Fargo believes that Netflix’s audio-visual content has improved significantly, and its performance next year may exceed expectations. $400.
It is reported in the market that Air India is close to signing an order for 737 MAX aircraft, and Boeing (BA-US) rose 0.26% to $179.54 per share. Boeing supplier Spirit Aerosystems Holdings (SPR-US) soared 3.05 percent to $27.72 a share.
Economic data
- U.S. PPI increased by 7.4% in November, expected to be 7.2%, and the previous value was 8.1%
- U.S. PPI increased by 0.3% in November, expected to be 0.2%, and the previous value was 0.3%
- The core PPI in the United States increased by 6.2% in November, expected to be 5.9%, and the previous value was 6.8%
- The core PPI in the United States increased by 0.4% in November, expected to be 0.2%, and the previous value was 0.1%
- The U.S. Consumer Confidence Index in December reported 59.1, expected 56.9, and the previous value of 56.8
- U.S. wholesale inventory growth rate in October was reported at 0.5%, expected 0.8%, and the previous value was 0.8%
Wall Street Analysis
The latest PPI data was stronger than expected. Stephanie Lang, chief investment officer of investment institution Homrich Berg, said: “Investors have been hoping that the Fed will change its aggressive tightening stance, but the data has not been able to support it.”
Lang expects: “You really need to see inflation come down to a level closer to the Fed funds rate before the Fed pauses, and there’s still a pretty wide gap between those numbers. There’s some work to do to really turn around.”
Don Rissmiller, chief economist at Strategas Research, said the most important thing is that the Fed has accepted that it may risk a recession to suppress inflation for a long time, and the job is not done. While rate hikes are likely to slow to 2 yards next week, he still expects policy to remain tight through 2023.
The numbers are all updated before the deadline, please refer to the actual quotation
