The Federal Reserve will hold a 2-day Federal Open Market Committee (FOMC) meeting on Tuesday (3rd). Wall Street waits for the Fed to make a key decision and digest mixed earnings reports. The dollar fell and oil prices fell, but energy stocks remained After a strong rise, following U.S. bond yields soared, bank stocks rose sharply, and the four major indexes closed in the red.
Wall Street is bracing for the Fed’s latest monetary policy decision, expecting the central bank to raise interest rates by 50 basis points for the first time since 2000 and unveil plans to shrink its $9 trillion balance sheet.
Markets fluctuated amid fears that continued inflation and interest rate hikes would pose risks to global economic growth. The Bank of America report showed that the recent successive slumps in U.S. stocks have deepened investor concerns, and the level of pessimism among retail investors has hit a record high since the financial crisis in March 2009. The new high since the bottom period.
In the Ukrainian-Russian War, the Russian army launched a new wave of attacks on the Azov steel plant in Malibo, Uzbekistan. Russian President Vladimir Putin signed the “Decree on Retaliatory Economic Measures”, prohibiting the supply of Russian-produced or mined products or raw materials to recipients of Russia. Sanctioned use by individuals or entities.
On the U.S.-China side, U.S. Trade Representative (USTR) officials said the annual U.S. tariffs on more than $300 billion worth of Chinese imports will expire on July 6, and the U.S. side is evaluating whether to extend it.
The global epidemic of new coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States pointed out that the number of confirmed cases worldwide has exceeded 514 million, and the number of deaths has exceeded 6.23 million. More than 11.6 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Tuesday (3rd):
Focus stocks
The five kings of technology were mixed. apple (AAPL-US) rose 0.96%; Meta (formerly Facebook) (FB-US) rose 0.43%; Alphabet (GOOGL-US) rose 0.64%; Amazon (AMZN-US) fell 0.20%; Microsoft (MSFT-US) fell 0.95%.
Dow JonesThe constituents were led by Boeing. Boeing (BA-US) rose 3.34 percent; Goldman Sachs (GS-US) rose 2.14%; Verizon Communications (VZ-US) rose 2.03 percent; Nike (US-US) fell 2.55%; Visa (V-US) fell 1.4 percent.
half feeMore than half of the constituents closed in the red. AMD (AMD-US) rose 1.44%; NVIDIA (NVDA-US) rose 0.35%; Qualcomm (QCOM-US) fell 0.70%; Intel (INTC-US) rose 0.22%; Applied Materials (AMAT-US) rose 0.73%; Micron (MU-US) rose 0.93%; Texas Instruments (TXN-US) fell 0.84%.
Taiwan stock ADR only ASE closed in the red. TSMC ADR (TSM-US) fell 0.14%; ASE ADR (ASX-US) rose 1.22%; UMC ADR (UMC-US) fell 0.74%; Chunghwa Telecom ADR (CHT US) fell 2.60%.
Corporate News
apple (AAPL-US) rose 0.96 percent to $159.48 a share. Apple’s acquisition of Desi Ujkashevic, a senior executive in safety and automotive engineering at Ford for many years, means Apple is stepping up its efforts to develop electric vehicles once more.
Witton Electronics (WDC-US) surged 14.47% to $61.72 per share. The hedge fund Elliott Investment Management wrote to the board of Witton Electronics that it is willing to invest $1 billion to promote the sale or spin-off of Witton Electronics’ flash memory business.
Hilton Worldwide (HLT-US) fell 4.25 percent to $148.96 a share. Hilton reported a better-than-expected first-quarter profit on the back of a rebound in travel demand. However, Hilton expects adjusted earnings per share in 2022 to be between $3.77 and $4.02, below analysts’ expectations.
Expedia (EXPE-US) plunged 14.02% to $150.31 per share. At least eight investment banks on Wall Street also downgraded the stock following Expedia’s mixed first-quarter earnings report dampened investor confidence. UBS analysts said the company’s results were lower than expected due to the Omicron virus and geopolitical uncertainty.
Twitter (TWTR-US) fell 0.55% to $48.87 a share, with shares slightly up in following-hours. According to the market, Musk said that he plans to take Twitter back to the public within the fastest three years following acquiring Twitter and taking it private.
Alibaba ADR (BABA-US) fell 0.82 percent to $100.38 a share. China’s “CCTV” reported on Tuesday that “Ma” was arrested on suspicion of endangering national security activities. The outside world speculated that he was Jack Ma. Later, CCTV news changed his name to “Ma”, prompting Alibaba’s stock price to wash its sauna in Hong Kong.
Economic data
- The final monthly growth rate of U.S. durable goods orders in March was 1.10%, expected to be 0.8%, and the previous value of 0.8%
- US March JOLTs job openings reported 11.549 million, expected 11.2 million, the previous value of 11.344 million
- The monthly growth rate of U.S. factory orders in March was 2.2%, expected 1.1%, and the previous value was 0.1%
Wall Street Analysis
Former International Monetary Fund (IMF) economist Kenneth Rogoff said the Fed would have to raise rates by 2 yards as the world faces a perfect storm of potential recessions in the United States, European Union and China.
Leo Grohowski, chief investment officer at BNY Mellon Wealth Management, said traders will be watching closely for any clues from Chairman Powell on the possibility of a three-yard rate hike at the June FOMC meeting.
Mark Hamilton, chief investment officer at Hirtle Callaghan, said: “There’s clearly a lot of volatility in the market, and the biggest risk that might continue into next year is whether the Fed will tighten policy at the same time as other factors are causing the economy to weaken, and will that lead to a recession?”
The figures are updated before the deadline, please refer to the actual quotation.
