© Reuters
Investing.com – Before the market opened on Tuesday (15th), U.S. stock index futures extended losses, with the Dow futures down about 280 points after an unexpected increase in U.S. core retail sales beat expectations.
Data showed that U.S. core retail sales rose to 1% on month in July from 0.2% in June, while expectations were for -0.3%. The monthly performance of overall retail sales was also much stronger than the expected 0.4%, reaching 0.7%, higher than the expected 0.4%. The data highlighted the resilience of U.S. consumption.
Growth was largely boosted by a 1.9 percent jump in e-commerce spending, sporting goods rose 1.5 percent and food service establishments rose 1.4 percent. However, sales of furniture fell 1.8 percent and sales of electronics and appliances fell 1.3 percent. Despite higher oil prices, gas stations reported a mere 0.4% sequential increase in sales.
Positive retail sales data may continue to support prices (inflation), making it more difficult for the Fed to shift from a hawkish policy stance.
On the other hand, US rating turmoil may reignite. According to the Financial Associated Press, Fitch banking analyst Chris Wolfe warned that dozens of US banks may be downgraded across the board, which may even include large banks such as JPMorgan Chase (NYSE: ).
After Fitch downgraded the operating environment rating of the U.S. banking industry to AA- in June, if it is downgraded to A+ again, Fitch will be forced to reassess the ratings of more than 70 U.S. banks it covers. In this scenario, the ratings of the two largest U.S. banks by assets, JPMorgan and Bank of America (NYSE: ), could be downgraded from AA- to A+, as banks cannot be rated higher than they are for their operating environment.
As of 21:00 Hong Kong time (09:00 am Eastern Time), Investing.com’s U.S. stock market showed that it fell 283.6 points or about 0.80%; fell 31.3 points or about 0.70%; fell 89.7 points or about 0.59%.
Individual stocks before the market opens
Home Depot (NYSE: ) fell 0.3% after the company reported a 2% year-over-year sales decline as consumers remained wary of big-ticket purchases and major renovations. However, sales fell less than expected, while the company announced a $15 billion stock buyback program and maintained its annual guidance.
Tesla (NASDAQ: ) fell 1.2%. The company launched lower-priced versions of the Model S and Model X SUVs with shorter ranges in the U.S. to boost sales.
General Motors (NYSE: ) fell 0.8% after Berkshire Hathaway (NYSE: ) reduced its stake in GM. Homebuilder DR Horton (NYSE: ) rose 2.1 percent and Lennar ( NYSE: ) rose 0.9 percent after Berkshire Hathaway increased its stake in both companies.
Financial services company Discover Financial (NYSE: ) fell 6.9% after the company announced the resignation of Chief Executive Officer Roger Hochschild.
Urban Outfitters (NASDAQ: ) fell 1.4% after Citigroup downgraded Urban Outfitters to neutral from buy, saying that while the company’s second-quarter results are expected to be strong, risk/reward now appears to be balanced.
Nvidia (NASDAQ: ) rose 1.2%, extending a sharp 7% rise in the previous session.
At the same time, FAANMG fell slightly, and the decline was generally less than 1%.
Chinese stocks
China Internet ETF KraneShares CSI China Internet (NYSE: ) edged down 0.7%.
Tencent Music (NYSE: ) tumbled 7.5%, despite a 5.5% year-over-year increase in second-quarter revenue and a 20% surge in paying subscribers to 100 million.
HUYA (NYSE: ) rose 3.3%, with its financial report showing total net revenue of 1.8214 billion yuan (about 251.2 million U.S. dollars) in the second quarter, compared with 2.2752 billion yuan in the same period in 2022. The net profit attributable to Huya was 23.2 million yuan (about 3.2 million U.S. dollars), compared with a net loss of 19.4 million yuan in the same period in 2022. Under non-GAAP, the net profit attributable to Huya was RMB 115.1 million (approximately US$15.9 million), compared with RMB 5.9 million for the same period in 2022.
other markets
financial report
Before the market opens: Sea Ltd (NYSE: ), Jumia Technologies AG (NYSE: ), Huize (NASDAQ: ), Xunlei Ltd Adr (NASDAQ: ).
After the market close: Nu Holdings Ltd (NYSE: ), Dada (NASDAQ: ).
Full earnings report today at Investing.comEarnings Calendar。
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Compiler: Liu Chuan
2023-08-15 13:26:59
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