The day before Federal Reserve Chairman Jerome Powell’s speech, U.S. bond yields continued to rise on Tuesday (29th).Dow JonesClosed nearly flat,That fingerS&P andfee halfThe three major indexes closed lower in a narrow range, swallowing black for the third consecutive trading day.
In terms of politics and economy, Wall Street predicts that Powell’s speech on Wednesday may strengthen the market’s expectations for a slowdown in the pace of interest rate hikes in December, while market participants are also waiting for key economic data this week, predicting that the United States will create new non-farm jobs in November The unemployment rate is expected to remain unchanged at 3.7%, the lowest since December 2020.
New York Federal Reserve Bank President Williams (John Williams) said on Monday that US inflationary pressures are expected to ease in the coming year, but that inflation is too high and further tightening of monetary policy is needed. The Fed’s big hawk, James Bullard, president of the St. Louis Federal Reserve Bank, believes that the terminal interest rate needs to rise to the range of 5%-5.25% to be restrictive enough to achieve the goal of reducing inflation.
According to the latest data from CME’s FedWatch Tool, traders expect the probability of the Fed raising interest rates by 2 yards to 4.25% and 4.5% in December exceeds 68%.
The U.S. railroad strike crisis has hit. President Biden urged Congress on Tuesday to pass legislation to prevent railroad strikes. Although this reduces the risk of industrial stocks, the biggest sticking point between labor and capital has not yet been resolved.
Railroad unions, which say Congress is enforcing labor agreements without changing paid sick leave, will worsen supply chains, have agreed that a nationwide strike could be held on Dec. The outlook for collective bargaining is grim.
The U.S. year-end shopping season is approaching. According to data from the National Retail Federation (NRF), during the five-day period from Thanksgiving last Thursday to “Cyber Monday” this Monday, the number of shopping malls and online shoppers broke records. The number reached 197 million, an annual increase of 9%, highlighting that under the pressure of soaring inflation, there is still no hindrance to people’s willingness to visit shopping malls during the festival.
Oil prices and energy stocks rose on Tuesday after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) will meet on Dec. 4 and may further cut production in response to weak market conditions.
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 641 million, and the number of deaths has exceeded 6.63 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 Tuesday (29th):
Focus stocks
The five kings of science and technology are almost all black. apple (AAPL-US) down 2.11%; Alphabet (GOOGL-US) down 0.90%; Microsoft (MSFT-US) down 0.59%; Meta (META-US) rose 0.63%; Amazon (AMZN-US) fell 1.63%.
Dow JonesConstituent stocks were mixed. Salesforce (CRM-US) down 1.31%; Disney (DIS-US) down 1.05%; Visa (V-US) fell 1.04%; American Express (AXP-US) rose 2.35%; Dow Chemical (DOW-US) rose 2.32%; Boeing (BA-US) rose 2.03%.
fee halfConstituent stocks were generally in the doldrums. NVIDIA (NVDA-US) down 1.19%; Applied Materials (AMAT-US) down 0.21%; Texas Instruments (TXN-US) down 0.012%; Micron (MU-US) down 1.13%; Intel (INTC-US) up 0.61%; Qualcomm (QCOM-US) down 0.97%; AMD (AMD-US) rose 0.27%.
Taiwan stock ADR collectively received dividends. TSMC ADR (TSM-US) up 0.14%; ASE ADR (ASX-US) up 0.47%; UMC ADR (UMC-US) up 0.56%; Chunghwa Telecom ADR (CHT US) rose 1.16%.
Corporate News
apple (AAPL-US) fell 2.11% to $141.17 per share. China’s strict anti-epidemic measures have aroused public dissatisfaction, and demonstrations broke out in many places. Investors are still worried about the risks facing Apple’s supply chain. Foreign media predict that the production capacity gap of iPhone 14 Pro high-end models is close to 6 million units.
Chevron (Chevron) (CVX-US) rose 1.53% to $181.03 per share. The Biden administration on Tuesday granted Chevron a limited license to resume oil production in Venezuela, a possible first step toward ending a years-long U.S. embargo on Venezuelan oil production.
HSBC ADR (HSBC-US) rose 4 percent to $30.45 a share. HSBC agreed to sell its Canadian business to RBC for $10.1 billion, with the deal expected to close by the end of next year.
AMC Television Network (AMCX-US) slipped 5.34% to $19.48 per share. AMC Television Network CEO Christina Spade announced her resignation after taking the job in September, and the company will lay off about 20% of its US workforce.
Economic data
- U.S. September FHFA house price index reported an annual rate of 11%, the previous value of 12%
- The monthly rate of the FHFA house price index in the United States in September was reported at 0.1%, expected – 1.2%, and the previous value – 0.7%
- In September, the annual rate of the S&P/CS 20 major cities’ unadjusted house price index was 10.4%, expected 10.8%, and the previous value was 13.1%
- In September, the monthly rate of the S&P/CS 20 large cities’ non-seasonally adjusted house price index was -1.2%, expected -1.2%, and the previous value was -1.3%
- U.S. Economic Review Council consumer confidence index reported 100.2 in November, expected 100, previous value 102.5
Wall Street Analysis
Alicia Levine, chief strategist at BNY Mellon Wealth Management, said: “Even in the early stages of a recession, S&P 500 earnings can still fall by 20%, and ultimately there is still a risk. This year is a year of transition, and next year is higher interest rates. , the market has not yet priced in the exact impact on the real economy.”
Deutsche Bank analyst David Folkerts-Landau warned: “The U.S. economy may enter a recession in mid-2023, which will trigger a sharp decline in the stock market. The stock market will recover its lost ground.”
The numbers are all updated before the deadline, please refer to the actual quotation