U.S. Treasury yields fell from a high level, alleviating market concerns about inflation. U.S. stocks rose across the board on Monday (1st). The Dow Jones Industrial Average rose nearly 500 points or 1.6%, the Nasdaq Index rose 1.4%, and the S&P 500 The index rose 1.4%, and fees rose 0.9%.
U.S. Treasury yields fell on Monday. Last month, due to the expected economic recovery to drive inflation, the 10-year U.S. Treasury yield once hit a one-year high and fell back to 1.432% on Monday.
So far, many Fed officials have stated that the rise in yields mostly reflects people’s expectations that the vaccination program will drive economic recovery and additional fiscal stimulus measures.The 1.9 trillion proposed by Biden in the House of Representatives last weekUSDThe bailout bill is expected to be submitted to the Senate for a vote this week.
There are also positive developments on the news of the new crown vaccine. The US Food and Drug Administration (FDA) approved the emergency use authorization of Johnson’s single-dose vaccine on Saturday (27th), and the US Centers for Disease Control and Prevention (CDC) quickly approved the use of Johnson’s vaccine the next day. Johnson & Johnson plans to provide 20 million doses of vaccine by the end of March, and vaccination will begin in the next few weeks as soon as possible.
Cruise, airline and hotel stocks generally rose on Monday. Carnival (CCL-US) Open up 2.5%, Norwegian Cruise Line (NCLH-US) Rose 3.6%, American Airlines (AAL-US) Rose 4.4%, Delta Air Lines (DAL-US) Rose 3.9%, Hilton Group (HLT-US) Rose 1.4%.
The Institute of Supply Management (ISM) will announce the February manufacturing PMI in the United States later, and it is expected that US factory activity will see strong growth.
As of Monday (1st) 22:00, Taipei time:
- The Dow Jones Index rose 499.29 points, or 1.61%, to 31,431.66 points temporarily
- Nasdaq rose 186.33 points, or 1.41%, to 13278.68 points temporarily
- The S&P 500 Index rose 54.81 points, or 1.44%, to 3,865.96 points temporarily
- Fees and a half rose by 26.13 points, or 0.85%, to 3,09.75 points temporarily
- TSMC ADR rose 1.59% to 127.94 per share USD
- The 10-year U.S. Treasury yield fell to 1.432%
- New York light crude oil rose 0.11% to 61.57 per barrel USD
- Brent crude oil fell 0.08% to 66.08 per barrel USD
- Gold rose 0.49% to 1,737.20 per ounce USD
- USDThe index rose 0.11% to 90.98 points
Focus stocks:
Jiaosheng (JNJ-US) Rose 1.44% to 160.74 in early trading USD。
The U.S. Food and Drug Administration (FDA) formally approved the emergency use authorization of Johnson’s vaccine on Saturday (27th), and was subsequently approved by the CDC as the third new coronavirus vaccine approved for use in the United States. According to data from a clinical trial across three continents, the protection of the Johnson vaccine is 85%.
Berkshire Hathaway (BRK-US) Rose 2.70% in early trading to 247.00 USD。
Berkshire, the holding company of Warren Buffett, announced its 2020 Q4 and full-year earnings on Saturday.Benefited from the rise in US stocks, Q4 net profit increased by nearly 23% annually to 35.83 billionUSD. In 2020, Berkshire executed 24.7 billionUSDTreasury stocks, including 9 billion in Q4USD, The number of treasury stocks for the year is equivalent to 5.2% of the number of shares outstanding, a record high.
Twilio (TWLO-US) Rose 4.32% to 409.84 in early trading USD。
According to people familiar with the matter, Twilio, a cloud communication service provider, plans to invest 750 million yuan in wireless communication technology and service provider Syniverse Technologies.USD, Paving the way for Syniverse’s SPAC listing. The investment case is expected to be announced on Monday.
Daily key economic data:
- At 22:45, Taipei time, the US February Markit manufacturing PMI will be announced, which is expected to be 58.5, and the previous value is 58.5.
- At 23:00, Taipei time, the US February ISM manufacturing PMI will be announced, which is expected to be 58.7, and the previous value is 58.7.
- At 23:00 Taipei time, the monthly growth rate of construction expenditure in the United States in January will be announced, which is expected to be 0.7%, and the previous value is 1.0%.
Wall Street analysis:
Threadneedle Investments fund manager Andrea Carzana believes that the progress this week is very important. If the Fed does not try to lower the market’s inflation expectations, bond yields may continue to rise and shake the stock market.
National Securities market strategist Art Hogan said that concerns about rising yields will eventually calm down, and interest rates will obviously calm down. At the same time, optimistic news about vaccines and bailout cases will provide support to the market, which is good news whether it is beneficial to the overall economy or corporate profits.
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