The US equity market earnings season was mixed, the bond market’s biggest economic downturn alarm went off, and US equities could not continue their two-day rally. The three major US equity indices closed in the dark Wednesday. (19th) and the S&P fell 0.67%.Dow Jonesdown nearly 100 points,that fingerDown 0.85%, Netflix shares were up more than 13% due to the bullish earnings report.
In terms of data, the US Census Bureau released data on Wednesday that U.S. housing starts fell more-than-expected in September, with a housing aggregate down 13.1%, showing that an aggressive squeeze of monetary policy has significantly weakened the housing market.
10-Year US Treasury YieldIt reached 4.136%, the highest since July 23, 2008. The inversion of the 10-year and 2-year US Treasury yield curve has intensified and the warning signs of a future recession have become increasingly evident. The recent “Bloomberg” economic model forecast shows that the probability of the US economy falling into recession in the next 12 months has reached 100%.
In political and economic news, the Federal Reserve released its latest “Beige Book” report on Wednesday, noting that economic activity in the United States has increased slightly and price growth has remained strong, despite some easing in several regions. Employment continued to grow, with some regions cooling down.
Neel Kashkari, chairman of the Federal Reserve Bank of Minneapolis, said the Fed needs to raise interest rates further as inflation remains high.
St. Louis Federal Reserve Bank Chairman James Bullard said Wednesday that the Fed should not react to the decline in stocks even as U.S. stocks plummeted this year and that the market is pricing in an expected rate hike by the US. Fed, which is a good idea According to the news, the terminal rate is expected to be close to 4.5% or 4.75%, which will make 2023 an “anti-inflation” year.
Global inflation continued to deteriorate. The UK’s consumer price index (CPI) rose 10.1% year-on-year in September, hitting a 42-year high. The EU’s overall inflation rate reached 11%, higher than that of the UK, which has strengthened market interest in the UK and the European Central Bank In the future, rates are expected to rise sharply interest rate and a start of balance sheet contraction as soon as possible.
The situation in Russia and Ukraine is grim and on Wednesday rising oil prices made energy stocks the only sector in the red, even as US President Biden announced the release of another 15 million barrels of oil reserves. Strategic Strategies (SPR), demanding the return of companies lower energy costs for consumers.
The global epidemic of novel coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States showed that the number of confirmed cases worldwide exceeded 626 million and the number of deaths exceeded 6.57 million. More than 12.7 billion doses of the vaccine have been administered in 184 countries around the world.
The performance of the four major US equity indices on Wednesday (19):
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The five kings of technology were mixed. apple (AAPL-USA) increased by 0.077%; Half (META-US) increased by 0.32%; Alphabet (GOOGL-US) fell by 1.13%; Amazon (AMZN-USA) fell by 1.11%; Microsoft (MSFT-USA) fell by 0.85%.
Dow JonesThe constituent shares received more black. The Home Depot (HD-USA) fell by 3.36%; Dow Chemical (DOW-US) fell by 2.7%; JPMorgan (JPM-USA) fell by 1.96%; Traveler (TRV-USA) increased by 4.44%; Chevron (CVX-USA) increased by 3.24%.
half shareConstituent stocks generally closed in red. Qualcomm (QCOM-USA) increased by 1.47%; AMD (AMD-USA) fell by 1.19%; NVIDIA (NVDA-USA) increased by 0.70%; Applied Materials (AMAT-USA) increased by 2.70%; Texas Instruments (TXN-USA) increased by 0.75%; Micron (MU-USA) increased by 0.91%.
The ADRs of Taiwanese shares fluctuated among themselves. TSMC ADR (TSM-USA) fell by 0.08%; ASE ADR (ASX-USA) rose by 0.21%; UMC ADR (UMC-USA) fell by 0.51%; Chunghwa Telecom ADR (CHT US) fell 1.18%.
Company news
The Wall Street Journal cited sources saying TSMC, the leading wafer smelter, is considering expanding its manufacturing capacity in Japan in an effort to reduce geopolitical risks. TSMC ADR (TSM-USA) fell 0.08% to $ 63.66 per share, with a discount / premium ratio of 3.09% and a conversion price of RMB 407.74.
Tesla (TSLA-USA) closed 0.84% in the red and its shares plummeted more than 4% after hours. Tesla announced its third quarter financial report after the market. Adjusted earnings per share were $ 1.05, better than analysts’ expectations, but revenues reached $ 21.45 billion, less than expected. Gross profit margin remained stable at 27.9%. A 50% growth and delivery of Tesla’s “Cyberttruck” electric pickup will begin in December.
Dutch semiconductor equipment manufacturer ASML (ASML) (ASML-USA) rose 6.27 percent to $ 424.02 per share. Esmore’s financial report for the third quarter of fiscal year 2022 released Wednesday before the market was better than market expectations and new orders also hit a new high.
The streaming giant Netflix (NFLX-USA) was up 13.09 percent to $ 272.38 per share. Netflix added 2.41 million new subscribers globally in the third quarter and expects to add another 4.5 million subscribers in the fourth quarter, reversing the decline in subscribers for the second consecutive quarter.
United Airlines (UAL-US) received a 4.97% dividend at $ 39.10 per share. United reported better-than-expected third-quarter earnings and expected another profit later this year, noting that consumer interest for travel shows no signs of slowing despite high ticket prices
Abbot (ABT-USA) fell 6.57% to $ 98.11 per share. Abbott’s latest financial report showed net revenue of $ 10.4 billion, down from $ 10.93 billion in the same period last year. Growth in international medical device sales was lower than expected, mainly due to the strong dollar and Chinese supply Chain hit.
Economic data
- The initial value of the monthly growth rate of building permits in the United States in September was 1.4%, expected at 3.8%, and the previous value was -8.5%.
- The initial value of the annualized total number of building permits in the United States in September reported 1.564 million units, the expected 1.53 million units and the previous value of 1.542 million units
- The annualized monthly rate of new homes in the US in September was -8.1%, expected -4.1, the previous value was 13.7%
- The annualized total of new homes starts in the United States in September recorded 1,439 million units, 1,475 million units expected and the previous value of 1,566 million units
Wall Street Analysis
“With Fed policy still tight and bond yields so high, extending the rally seems like a tall order,” said Nick Colas, co-founder of DataTrek Research.
Craig Johnson, Piper Sandler’s chief market technician, said: “Signals of overselling have recently supported a stock market rally and, from a technical standpoint, the risk of another scam appears to be high because there is no evidence. sufficient that the stock market has completely hit bottom, but it cannot be ruled out: there is the possibility of a strong rebound at the end of the year “.
The data is updated before the deadline, please refer to the actual quotation.
