Walmart and Home Depot, the two major U.S. retail giants, announced their latest earnings before the market. The two companies have delivered good transcripts, and both revenue and profit were better than market expectations. However, investors are still cautious regarding the outlook for the global economy. U.S. stocks on Tuesday ( 16) opened mixed.
Before the deadline,Dow Jones Industrial Averagerose more than 50 points or nearly 0.2%,Nasdaq Composite Indexdown more than 50 points or nearly 0.4%,S&P 500 Indexfell nearly 0.1%,Philadelphia SemiconductorThe index is more than 1%.
In terms of economic data, U.S. real estate continued to cool down. The initial value of the annualized total number of building permits in July was reported at 1.65 million, which was better than the expected 1.65 million, but fell from the previous value of 1.696 million. The total number of changes also fell short of expectations, falling to 1.446 million from 1.599 million in June. However, the monthly rate of industrial production in July was 0.6%, better than the expected 0.3%, and the annual growth rate was 3.9%.
The Federal Reserve (Fed) will release the minutes of the Federal Open Market Committee (FOMC) meeting at 2:00 a.m. Taiwan time on Thursday (18th). At the same time, Kansas Fed Bank President Esther George, Minneapolis President The president of the Fed will also speak in succession.
However, markets will focus on the August 25-27 meeting of global central banks in Jackson Hole, Wyoming, where Fed Chairman Powell is likely to address quantitative tightening (QT) monetary policy. Before that, traders were bracing for higher stock market volatility.
In other news, Citigroup will join conference video company Zoom (ZM-US) was downgraded to sell from neutral, as foreign investors believe the company will face new obstacles to its continued growth. Zoom’s shares opened 6.29% lower, at $106.11 per share.
As of 22:00 on Tuesday (16th) Taipei time:
Stocks in focus:
BHP Billiton (BHP-US) rose 4% to $56.93 a share in early trade
The world’s largest miner BHP Billiton (BHP) has benefited from the surge in commodity prices and has brought huge profits. Its 2022 fiscal year (as of 6/30) has a profit blowout of 26% to $21.3 billion, a record 11-year high, and announced a record allotment dividend of $3.25 per share. In addition, the company has not ruled out a second bid for OZ Minerals, following an earlier $6 billion offer was rejected.
Now Holdings(NU-US) rose 10.36% to $5.17 a share in early trade
Nu Holdings, a digital bank favored by Warren Buffett, reported second-quarter revenue of $1.158 billion, which was not only better than market expectations of $907.8 million, but also much higher than the $336.1 million in the same period last year. The stock price rose more than 12% before the market. .
The Home Depot (HD-US) rose 1.66% to $319.84 a share in early trade
Home Depot beat analysts’ forecasts for profit and revenue last quarter and said demand for home improvement projects continued to be strong. According to the financial report, Home Depot reported revenue of $43.79 billion last quarter, higher than analysts’ expectations of $43.36 billion, and adjusted earnings per share of $5.05, better than analysts’ expectations of $4.94. In addition, Home Depot still expects total sales to grow regarding 3% in 2022 from a year ago
Today’s key economic data:
- The initial monthly rate of construction permits in the United States reported -1.3% in July, the previous value was 0.1%
- The initial value of the annualized total number of building permits in the United States in July reported 1.674 million units, the expected 1.65 million units, and the previous value of 1.696 million units
- The annualized monthly rate of new housing starts in the United States in July was -9.6%, the previous value was 2.4%
- The annualized total of new housing starts in the United States in July reported 1.446 million units, expected 1.54 million units, and the previous value of 1.599 million units
- U.S. industrial production in July reported a monthly rate of 0.6%, expected 0.3%, the previous value – 0.2%
- The annual rate of industrial production in the United States in July was 3.90%, the previous value was 4.02%
Wall Street Analysis:
Shane Oliver, head of investment strategy at AMP Services, said the risk of stocks falling below their June lows was quite high, with weak U.S. economic data heralding weaker U.S. corporate earnings.
Jin Yuejue, an investment expert in multi-asset solutions at JPMorgan Asset Management, said the minutes of the Fed’s meeting this week might hint at the size of the next rate hike, with the Fed expected to raise rates by another 100 basis points this year.
