The market is awaiting a speech from U.S. Federal Reserve (Fed) Chairman Jerome Powell. The number of people claiming unemployment benefits last week was far lower than expected, supporting the view that interest rates will remain at their peak for longer. U.S. bond yields rose nearly 5%. Major U.S. stock indexes rose on Thursday. (19th) Mixed. In addition, Tesla fell more than 6% in early trading due to the bleak financial report, and Netflix’s share price soared more than 14% due to its outstanding performance.
before deadline,Dow Jones Industrial AverageUp nearly 16 points or nearly 0.05%,Nasdaq Composite Indexrose nearly 100 points or nearly 0.1%,S&P 500 Indexup 0.04%,Philadelphia SemiconductorThe index fell nearly 0.7%.
U.S. Treasury yields continued to rise after U.S. jobless claims data last week supported speculation that the Fed will maintain tightening policy for longer, even if the Fed decides to keep interest rates unchanged next month.10-year U.S. Treasury yieldInterest rates rose 4 basis points to 4.96%, and the US dollar remained stable.
Specifically, the number of people claiming initial unemployment benefits in the United States last week was 198,000, far lower than market expectations of 212,000, and also lower than the revised previous value of 211,000, a new low since January this year; the number of people continuing to receive unemployment benefits last week was 1.734 million. , higher than market expectations of 1.71 million, and the revised previous value was 1.705 million. The initial jobless claims data show that the job market remains strong despite rising interest rates, which is a potential factor that makes it difficult for U.S. inflation to cool down.
Mark Haefele, chief investment officer at UBS Global Wealth Management, said: “U.S. Treasuries have not fulfilled their safe-haven role in recent days, with strong U.S. economic data masking concerns about rising conflicts in the Middle East. Instead, investors have been seekinggoldand oil as a hedge against geopolitical risks. “
In terms of other economic data, the Philadelphia Fed President’s Manufacturing Index in the United States in October was -9, far lower than market expectations of -6.4, but rebounded from the previous value of -13.5. In addition, the index turned negative for the 15th time in the past 17 months.
Fed Chairman Jerome Powell will deliver a speech at 12 a.m. Taiwan time on Friday (20th), and investors will pay close attention to the content of his speech to find clues about the future dynamics of monetary policy.
In addition to Ball, Chicago Fed President Goolsby, Atlanta Fed President Bostick, Philadelphia Fed President Harker, and Dallas Fed President Logan will also deliver speeches. In addition to Bostick, In addition, everyone else has voting rights on this year’s Federal Open Market Committee (FOMC).
BMO Capital Markets analyst Ben Jeffery said: “We continue to monitor the 5% 10-year U.S. Treasury yieldThe new data failed to materially change the overall tone. We suspect investors will be reluctant to push a deal in either direction pending comments from Fed Chairman Jerome Powell. “
Meanwhile, traders continue to keep a close eye on the latest geopolitical events in the Middle East.
British Prime Minister Sunak, U.N. Secretary-General Antonio Guterres and Germany’s top diplomat are visiting the region as part of a broader effort to contain the war between Israel and Hamas and deliver vital humanitarian supplies to Gaza. U.S. President Joe Biden said trucks carrying food and other aid supplies were ready to enter Gaza through the Rafah crossing with Egypt.
As of 21:00 Taipei time on Thursday (19th): Focus stocks:
Broadcom (AVGO-US) fell 1.12% in early trading to $877.13 per share
The Chinese government is considering blocking US chipmaker Broadcom’s $69 billion acquisition of cloud computing company VMware, the Financial Times (FT) reported on Thursday, citing three people familiar with the matter. After the news broke, VMware (VMW-US) shares fell more than 7% before the market opened on Thursday.
Tesla (TSLA-US) fell 6.55% in early trading to $226.78 per share
Tesla’s revenue in the third quarter reached US$23.4 billion, an annual increase of 9%; net profit was US$1.853 billion, and gross profit margin was 17.9%, both lower than the second quarter; R&D expenses in the third quarter increased by 58.39% annually, reaching 1.161 billion Dollar. Tesla boss Musk said on the earnings call that he is worried about the impact of high interest rates on car buyers, and the company is focusing on making electric vehicles more affordable in a high interest rate environment.
Netflix(NFLX-US) rose 14.29% to $395.65 per share in early trading
Netflix’s revenue in the third quarter was US$8.542 billion, an increase of 7.8% compared with US$7.926 billion in the same period in 2022; net profit was US$1.677 billion, an increase of 20% compared with US$1.398 billion in the same period in 2022; earnings per share reported $3.73, compared with $3.10 for the same period in 2022. Netflix’s third-quarter revenue and earnings per share both exceeded Wall Street analysts’ previous expectations. In addition, the total number of paying users of the global streaming service and the number of new paid subscribers worldwide in the quarter also exceeded expectations.
Today’s key economic data: The number of people claiming initial unemployment benefits in the United States last week was 198,000, compared with 212,000 expected, and the previous value of 211,000. The number of people claiming initial unemployment benefits in the United States last week was 1.734 million, compared with 1.71 million expected, and the previous value was 1.705 million. The quasi-bank manufacturing index reported – 9, expected – 6.4, and the previous value – 13.5. The monthly growth rate of existing home sales in the United States in September was – 0.7%. The total number of existing home sales in the United States in September is expected to be 3.89 million units, compared with the previous value of 4.04 million units. Wall Street analysis :
Well-known American fund manager John Hussman recently warned that U.S. stocks are overpriced and may plummet by more than 60%. “Market valuations are at one of the three extremes of bubbles in U.S. history, comparable to the peaks of 1929 and 2000,” the veteran investor and financial historian said in his latest research note. “The first two were reckless. Speculations have all ended disastrously, and the current bubble is likely to burst in a similar fashion.”
Jeffrey Gundlach, CEO of DoubleLine, known as the “New Bond King”, believes that the prospect of the US dollar’s reserve currency status depends on whether the US government can control fiscal spending. Gundlach wrote on Wednesday that rising U.S. interest rates and the continued increase in debt issuance of up to $33.59 trillion will damage the U.S. dollar’s continued status as a reserve currency.
2023-10-19 13:49:22
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