Investors digested hawkish remarks from Federal Reserve (Fed) officials and major US stock indexes opened higher on Friday (18).Dow Jones Industrial Averageit’s up more than 120 points.
before the deadline,Dow Jones Industrial Averagerose more than 120 points or nearly 0.4%,Nasdaq Composite Indexrose more than 50 points or nearly 0.5%,S&P 500 indexup nearly 0.5%,Semiconductor PhiladelphiaThe index rose 0.7%.
US stock marketS&P 500 indexFutures andNasdaq Futures on the 100 index rose 0.9% and 1%, respectively, after the Fed “Eagle King” Bullard (James Bullard) issued a tough statement saying that to control inflation, the interest rate it needs to go up to at least 5%, which scared US stocks into falling across the board, bond yields and the dollar soared. Furthermore, as soon as Bullard’s remarks emerged, the market also raised expectations for the terminal interest rate.
Foreign media believe Bullard is just the latest official to warn the market against thinking the Fed could become accommodative. Although previous reports showed US inflation cooled last month, the Fed has yet to tighten further. monetary policy to curb price pressures.
At the same time, some investors said the hawkish comments don’t necessarily mean the final interest rate will eventually rise above previous expectations and could simply dilute investor sentiment.
However, the market is gradually mounting fears that continued interest rate hikes could hurt economic growth. The US Treasury yield is in its most severe reversal in 40 years and economic downturn alarm bells are ringing. Copper and oil prices, which are sensitive to economic growth, are expected to decline this week on concerns about the deteriorating demand outlook.
Trading volume in US stocks is breaking records ahead of Friday’s $2.1 trillion option expiration. The monthly event, known as the “OpEx,” has a reputation for triggering volatility, as traders and traders rebalance their large exposures en masse throughout the day.S&P 500 indexIt briefly surpassed the 4,000-point level twice and among contracts renewed today, this position has the highest open interest.
Starting at 22:00 on Friday (18) Taipei time:
Focus on actions:
jingdong (JD-USA) fell 2.33% in early trading to $56.18 per share
Chinese e-commerce company JD.com’s performance in the recent quarter exceeded expectations. The main reason is that China’s new corona epidemic risk control measures have enabled more consumers to switch to online shopping, which has driven JD.com’s substantial growth in the last quarter.
JD.com revenue increased 11.4% year over yearRMB 243.5 billion yuan (the following units are the same), far exceeding the 243.1 billion yuan expected by Wall Street analysts; operating profit in the third quarter increased 234.6% to 8.7 billion yuan, compared with 3.8 billion yuan in the same period last year. The company’s net income attributable to ordinary shareholders in the third quarter was 6 billion yuan, compared with a loss of 2.8 billion yuan in the same period last year; in the third quarter, the US Adjusted Depository Receipt (ADS) reported 6.27 yuan per share, far exceeding market expectations of 4.46 yuan.
split(GPS-USA) rose 8.89 percent to $13.87 a share in early trading
Gap, a branded apparel company, surprised Wall Street analysts by recovering its profitability in the recent quarter, and its revenue performance was also better than expected, pushing the US stock market’s pre-market share price to rise by more than 5%. According to the financial report, Gap’s revenues in the recent quarter increased 2% to US$4.04 billion and its diluted earnings per share increased 163% to US$0.71, both better than estimates of the analysts of 3.82 billion US dollars and $0.
Applied Materials (AMAT US) rose 2.28% to $106.83 per share in early trading
US semiconductor equipment maker Applied Materials announced strong revenue and profit for the fourth quarter, and its forecast for the current quarter (the first quarter of fiscal 2023) also exceeded market expectations. economic downturn. The hit, the pre-market share price rose more than 4%.
Applied Materials’ revenues in the recent quarter increased 10% to $6.75 billion and its adjusted earnings per share were reported at $2.03, both better than analyst estimates of $6.45 billion and $1.73. The company expects revenue of $6.3 billion to $7.1 billion for the quarter and earnings per share of $1.75 to $2.11, compared with analyst estimates of $6.34 and $1.77, respectively.
Today’s key economic data:
- Annualized total U.S. existing home sales in October reported at 4.43 million, expected at 4.38 million, and prior was 4.71 million
- October US Existing Home Sales Annualized Monthly Rate was -5.9%, -7.3% expected and prior was -1.5%
Wall Street Analysis:
James Athey, investment director at Abrdn Investment Management Company, said the Fed still maintains a hawkish stance, with harsh words and continues to raise interest rates to fight inflation, but that doesn’t mean the terminal interest rate expected to be higher than market forecast a week or two ago Dilute investor sentiment.
Bank of America analysts said that since the Fed could only adjust policy in June and July, hikes in interest rates and corporate earnings could negatively impact the stock market. While US inflation showed signs of slowing last month and inflows into equity funds increased last week, much of the bear market rally has ended.
