Investors focused on the Russian-Ukrainian conflict and digested the company’s financial report performance. The major US stock indexes opened collectively lower on Thursday (17th). At the time of writing, the Dow Jones Industrial Average was down more than 400 points or 1.2%, the Nasdaq Composite was down 1.18%, the S&P 500 was also down 1.2% and the Philadelphia Semiconductor Index was down 2.1%.
Russia appeared to be “imminently invading” Ukraine, a senior U.S. official said, but Russia’s foreign ministry denied claims by the United States and Britain that it had stepped up troop deployments along the Ukrainian border. In addition, the Group of Seven Industrial Countries (G7) plans to take the opportunity of the Munich Security Conference in Germany on Saturday to hold an emergency meeting of foreign ministers to discuss the situation in Ukraine and Russia.
Investors expect the Fed to tighten by at least 150 basis points in 2022 (over 75 basis points in previous weeks) to combat inflationary pressures, but there is concern that the withdrawal of pandemic-era stimulus might hurt growth , and cause greater volatility in the capital market.
In energy, West Texas crude fell 2.61% to 91.21 a barrel by press time DollarBrent crude fell 2.49% to 92.45 Dollar. U.S. Treasury yields fell as investors digested the Fed’s latest meeting minutes, while closely monitoring developments on the crises in Russia and Ukraine. The 10-year yield fell to 1.974% at the time of writing.
In terms of individual stocks, Cisco (CSCO-US) second-quarter earnings beat market expectations and announced 15 billionDollarThe treasury stock plan encouraged a rise of nearly 5% in early trading; Huida (NVDA-US) recently announced that its fourth-quarter profit doubled and its revenue hit a record high, but supply chain problems caused its automotive division to underperform, falling nearly 5% at the opening.
Before the deadline at 22:00 on Thursday (17th) Taipei time:
- The Dow Jones Industrial Average fell 433.96 points, or 1.24%, to 34,500.31
- The Nasdaq Composite Index fell 166.24 points, or 1.18%, to 13,959.93
- The S&P 500 fell 55.38 points, or 1.24%, to 4,419.63
- Feihan fell 77.10 points or 2.14% to 3,479.60
- TSMC ADR fell 2.31% to 120.75 per share Dollar
- 10-year U.S. Treasury yield fell to 1.974%
- NY Light crude fell 2.62% to 91.21 a barrel Dollar
- Brent crude fell 2.49% to 92.54 a barrel Dollar
- Gold rose 1.23% to 1,894.60 an ounce Dollar
- DollarIndex rose to 95.805
Stocks in focus:
Walmart (WMT-US) rose 1.61% to 135.68 per share in early trade Dollar。
Retail giant Walmart reported better-than-expected fourth-quarter earnings before the bell, with adjusted EPS of 1.53 Dollarwith revenue of 152.87 billionDollarbetter than the market forecast of 1.50 Dollarwith 152.87 billionDollarand announced a dividend hike of 0.01 DollarAnd a stock buyback program of 10 billion U.S. shares.
Palantir(PLTR-US) fell 13.73% to 12.06 per share in early trade Dollar。
U.S. big data services company Palantir Technologies reported poor fourth-quarter earnings before the market opened, although revenue rose 34% to 433 millionDollarbetter than market estimates, but adjusted earnings per share in the last quarter were only 0.02 Dollarlower than the estimated 0.04 Dollarand the profit growth forecast for this quarter is only 23%, which is worse than the 29% in the previous quarter.
ByDash(DASH-US) rose 16.51% to 110.56 per share in early trade Dollar。
U.S. food delivery platform DoorDash reports $1.3 billion in fourth-quarter revenueDollarbetter than analysts’ estimate of 1.28 billionDollarthe number of orders is also better than market estimates, showing that in the post-epidemic period, the demand for delivery services is still very large.
Key Economic Data:
- The number of Americans receiving unemployment benefits last week reported 248,000, an estimated 218,000, and the previous value of 223,000
- The US building permit rate in January increased by 0.7% month-on-month, estimated at -7.2%, the previous value was 9.1%
Wall Street Analysis:
Hana Financial Investment analyst Lee jae-un said recent market volatility showed stocks were vulnerable to geopolitical risks related to Ukraine and Russia, and the disruptions also cast a shadow over the Fed’s latest minutes.
Marcella Chow, global market strategist at JPMorgan Asset Management, said the market will remain volatile until it is known how the Fed’s rate hike will unfold.
With high inflation, even if the Fed raises rates, real interest rates will remain largely negative, said Brian Lan, managing director of GoldSilver Central. So following the market reacts knee-jerk to the rate hike, investors will realize that in this environment, gold is still a good asset to own.
