Before the release of key inflation data, investors cheered the loosening of China’s epidemic prevention measures and signs of cooling in the U.S. job market. With the intervention of bargain hunters, U.S. stocks opened higher on Thursday (8th) and then fluctuated. 10-Year U.S. Treasury Yieldclimbing impact.
Dow JonesIt closed more than 183 points in red on Thursday. S & P rose more than 0.75%,fee halfIt surged more than 2.6%, ending the blackout situation for the past 5 consecutive trading days.That fingerIt rose over 1.1%, ending the 4-day losing streak.
In terms of data, the U.S. Department of Labor announced on Thursday that the adjusted number of people receiving unemployment benefits last week reported 225,000, which was lower than market expectations, but the number of people continuing to receive unemployment benefits in the United States last week reported 1.608 million, rising to a new high since early February. The higher-than-expected reading showed that unemployed people had a harder time finding new jobs in a cooling labor market.
Investors were awaiting Friday’s U.S. producer price index (PPI) for November, one of the last data the Federal Reserve will see before its Dec. 13-14 policy meeting.
In terms of politics and economy, the U.S. House of Representatives passed the 2023 Fiscal Year National Defense Authorization Act (NDAA) with 350 votes in favor and 80 votes once morest on Thursday. $10 billion in military aid, the bill is expected to be voted on in the Senate next week.
Fears of economic recession persist. According to a report released by Nicholas Colas, founder of research firm DataTrek, the New York Fed’s model for measuring the possibility of economic recession suggests that there is almost a 100% chance that the US economy will fall into recession next year due to the Fed raising interest rates. Citigroup chief executive Jane Fraser believes that the world is in recession, and the US economy may follow suit in the second half of next year.
U.S. Treasury Secretary Janet Yellen said on Thursday that the U.S. can avoid a recession because there is no wage and price spiral, rent prices have peaked and retreated, and supply chain bottlenecks are beginning to ease.
China has relaxed its epidemic prevention measures, including no longer checking health codes for cross-regional migrants, and home isolation for asymptomatic infections and mild cases. The Wall Street Journal reported on Thursday, citing sources, that Apple (AAPL-US) Supplier Foxconn (2317-TW) founder Guo Taiming played an important role in helping persuade the Chinese government to relax the epidemic control in a key letter more than a month ago.
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 647 million, and the number of deaths has exceeded 6.64 million. More than 12.7 billion doses of vaccines have been administered in 184 countries around the world.
On Thursday (8th), the performance of the four major US stock indexes:
Focus stocks
Of the five kings of technology, only Alphabet underperformed. apple (AAPL-US) rose 1.21%; Alphabet (GOOGL-US) down 1.30%; Microsoft (MSFT-US) up 1.24%; Meta (META-US) rose 1.23%; Amazon (AMZN-US) rose 2.14%.
Dow JonesComponent stocks were mixed. Nike (OF THE US) rose 2.8 percent; Cisco (CSCO-US) rose 1.68%; Boeing (BA-US) rose 1.46%; Home Depot (HD-US) rose 1.23%; Goldman Sachs (GS-US) fell 0.51%.
fee halfConstituent stocks collectively received dividends. NVIDIA (NVDA-US) soared 6.51%; Applied Materials (AMAT-US) rose 2.36%; Texas Instruments (TXN-US) up 1.50%; Micron (MU-US) rose 2.56%; Intel (INTC-US) up 0.39%; Qualcomm (QCOM-US) rose 2.99%; AMD (AMD-US) up 0.47%.
The ADRs of Taiwan stocks were up and down. TSMC ADR (TSM-US) up 1.97%; ASE ADR (ASX-US) rose 1.20%; UMC ADR (UMC-US) up 0.42%; Chunghwa Telecom ADR (CHT US) down 0.69%.
Corporate News
Tesla (TSLA-US) fell 0.34% to $173.44 per share. Citing sources familiar with the matter, Bloomberg reported on Thursday that Tesla will shorten production shifts at the Shanghai plant as soon as next Monday and delay the reporting time of some new employees. Piper Sandler analysts pointed out that China’s November car sales hinted at a slowdown in annual car sales, which explained earlier rumors of Tesla’s production cuts.
Amazon (AMZN-US) rose 2.14% to $90.35 per share. Amazon has launched a shopping function “Inspire” similar to Tik Tok, hoping to use the influence of Internet celebrities to attract its fans to shop and develop new customer sources. The new feature will roll out to select users in the US in December first, and across the US in the coming months.
Gaming giant Activision Blizzard (ATVI-US) down 1.54%, Microsoft (MSFT-US) rose 1.24 percent. The U.S. Federal Trade Commission (FTC) filed an antitrust lawsuit once morest Microsoft on Thursday, planning to prevent Microsoft from acquiring Activision Blizzard. Microsoft, which intends to build a metaverse game carrier, is expected to stand up for the fight.
Broadcom reported strong earnings and guidance on Thursday, both beating analyst expectations. Broadcom (AVGO-US) received a dividend of 2.43%, and its share price rose more than 3% following hours.
Economic data
- The number of Americans claiming unemployment benefits at the beginning of last week reported 230,000, 230,000 expected, and 226,000 before the revision
- The number of people continuing to receive unemployment benefits in the United States last week was reported at 1.671 million, expected to be 1.6 million, and the previous value was revised to 1.609 million
Wall Street Analysis
Goldman Sachs global equity strategist Peter Oppenheimer believes: “Investor optimism regarding inflation peaking is misleading, because energy costs may soar in 2023, resulting in high prices and high interest rates.”
Mike Loewengart, head of modeling portfolio construction at Morgan Stanley, said: “Investors will have a lot to digest in the next few days because investors will have a clearer picture of inflation before the Fed makes a decision. The market basically expects Rate hikes will slow starting next week, but whether this adjustment will be enough to guide the economy to a soft landing remains a question.”
The numbers are all updated before the deadline, please refer to the actual quotation