U.S. stocks were mixed on Monday (Nov 4) as traders paid close attention to warning signs from the bond market regarding the economy and rising oil prices despite the ongoing war between Russia and Ukraine. Before the deadline,Dow Jones Industrial Averagefell more than 100 points or nearly 0.34%,Nasdaq Composite Indexup 0.99%,S&P 500 Indexup 0.12%,Philadelphia SemiconductorThe index rose 0.94%.
Negotiators from Russia and Ukraine will resume video-conferences on Monday. Earlier, the European Union condemned atrocities committed by Russian troops in several Ukrainian towns as a matter of urgency and moved to impose more sanctions on Russia.
Investors are focusing on whether new reports of war crimes will increase pressure on the Biden administration and European allies to tighten sanctions on Russia. Hopes of imminent progress in Russia-Ukrainian peace talks have dimmed.
West Texas crude oil (WTI) futures rose above $100 a barrel on the release of the strategic petroleum reserve (SPR) plan by Western countries and the outbreak in China. WTI futures rose 4.13% to $103.37 a barrel by the time of writing.Brent CrudeFutures rose 3.44% to $107.98 a barrel.
U.S. Treasury yields pared gains, but 2- and 10-year, 5- and 30-year yield curves continued to invert, which has historically preceded recessions, though economists pointed out , an inversion does not guarantee a recession.The dollar steadied, by the time of writingUS dollar indexrose to 98.89.
As of 21:00 on Monday (4th) Taipei time:
Stocks in focus:
Twitter (TWTR-US) rose 23.76% to $48.65 a share in early trade
Tesla Chief Executive Elon Musk owns 9.2% of social media platform Twitter, a move that would make it Twitter’s largest outside shareholder, according to filings with the U.S. Securities and Exchange Commission (SEC). Shares of Twitter jumped more than 25 percent in premarket trading following the news broke.
Tesla (TSLA-US) fell 0.49% to $1,079.29 a share in early trade
Tesla delivered a record of more than 310,000 vehicles last quarter, slightly above market expectations, but production fell from the previous quarter, the second of 2020, as supply chain disruptions and plant shutdowns in China weighed on For the first time since the beginning of the quarter, the quarterly production capacity declined compared to the previous quarter.
Starbucks (SBUX-US) fell 4.11% to $87.73 a share in early trade
Starbucks founder Howard Schultz (Howard Schultz) returned to the pot three times, and following serving as interim CEO, he announced that he would immediately suspend the treasury stock plan, saying that the move would free up funds to invest in cafes and employees to help future operational growth. Schutz said the move comes at a time when the company is facing supply chain tensions, the fallout from the pandemic, rising tensions and political turmoil, and he will focus on reviving Starbucks, with plans to build thousands of new cafes around the world over the next few years.
Today’s key economic data:
- US February factory orders monthly growth rate reported -0.5%, expected -0.5%, the previous value of 1.5%
- The final monthly growth rate of US durable goods orders in February was -2.1%, expected -2.2%, the previous value – 2.2%
Wall Street Analysis:
Altaf Kassam, chief investment strategist for EMEA at State Street Global, said that given the uncertainties in the market, the consequence of the prolonged Russia-Ukraine conflict will be a rise in inflation over the long term.
OANDA senior market analyst Craig Erlam said that he hopes that Russia and Ukraine can make progress on the ceasefire, but it will not happen too soon in the short term; although there has been positive progress in risk assets so far, in the context of war-side negotiations between the two countries, Still vulnerable to setbacks.
Tom Essaye, founder of Sevens Report Research, said the key event this week is the minutes of the Federal Open Market Committee (FOMC) meeting on Wednesday, and if the Fed hints that it will shrink its balance sheet quickly, it will bring strong resistance to the stock market.
