Major U.S. stock indexes opened higher on Tuesday (14th) after the latest data released by the United States showed that inflation has cooled, reinforcing the view that interest rates have peaked and the Federal Reserve (Fed) has room to loosen monetary policy next year.USA 10-Year Treasury Bond Yieldfell to 4.4%,dollar indexIt also fell to 104.765.
before deadline,Dow Jones Industrial Averagerose more than 360 points or more than 1%,Nasdaq Composite Indexrose nearly 270 points or nearly 2%,S&P 500 Indexrose nearly 1.5%,Philadelphia SemiconductorThe index fell more than 2.7%.
Data released by the U.S. Bureau of Labor Statistics (BLS) on Tuesday showed that the core Consumer Price Index (CPI), which excludes food and energy costs, rose 0.2% from September. Economists believe that the core indicator better reflects underlying inflation than the overall CPI.
“While the U.S. economy remains strong, inflation data is a ‘soft landing paradise’ for the stock market,” said Neil Dutta, head of economics at Renaissance Macro Research.
Richard Flynn, an analyst at Charles Schwab UK, believes that the CPI data makes a soft landing more and more likely, and that the Fed is slowly approaching its 2% inflation target. He noted that the fall in inflation indicated that recent monetary policy was working. The good news increases the likelihood that central bankers will not raise interest rates further this cycle.
Sit Fixed Income Advisors analyst Bryce Doty believes that U.S. bond yields have fallen sharply because the last batch of investors who do not believe that the Fed has ended raising interest rates may have “admitted defeat.” He noted that the Fed’s next move is more likely to be to cut interest rates next summer than to raise them again.
Lindsay Rosner, an analyst at Goldman Sachs Asset Management, said the latest CPI report should solidify bets that the Fed will keep interest rates unchanged in December.
Traders will also be watching comments from Fed officials throughout the day to get their views on the Fed’s next steps, especially on the outlook for a rate cut next year.
As of 21:00 Taipei time on Tuesday (14th): Focus stocks:
Donghai Group (SE-US) fell 10.65% in early trading to $41.13 per share
Donghai Group, the parent company of Shopee, announced its financial results for the third quarter of fiscal year 2023 before the U.S. stock market opened on Tuesday. Affected by sluggish consumption and intensified market competition from peers Alibaba and TikTok, although its revenue in the quarter was still only slightly higher than the market Expected, but again in the red. After the news came out, Donghai Group’s stock price fell more than 12% before the US stock market opened on Tuesday.
Boeing (BA-US) rose 1.43% in early trading to $207.46 per share
Ethiopian Airlines announced an order for Boeing 737-8 MAX narrow-body jets on Tuesday, nearly five years after a fatal MAX crash in 2019 grounded the global fleet. The airline will announce an order for wide-body aircraft in the coming months, possibly a Boeing 777X or Airbus A350, but declined to say how many wide-body aircraft it will order.
The Home Depot (HD-US) rose 4.97% to $302.38 per share in early trading
Home Depot’s sales fell 3% last quarter from a year earlier, but beat Wall Street expectations as customers cut back on general projects and home repairs. The retailer narrowed its full-year outlook, taking a conservative view of the coming months. The company said it now expects sales to fall 3% to 4% from the previous year, compared with its previous forecast of a 2% to 5% decline. Home Depot expects earnings per share to fall 9% to 11%, compared with its previous forecast of a 7% to 13% decline.
Today’s key economic data: The annual growth rate of U.S. CPI in October was 3.2%, which was expected to be 3.3%, and the previous value was 3.7%. The annual growth rate of U.S. CPI in October was 0.0%, which was expected to be 0.1%, and the previous value was 0.4%. The monthly real personal income growth rate in the United States in October was reported at -0.1%, revised to 0.2%, compared with the expected 4.1%, and the previous value of 4.1%. Value – 0.1% Wall Street Analysis:
Bank of America’s latest survey of fund managers shows investors firmly believe interest rates will fall in 2024, making them the most bullish on bonds since the global financial crisis. Investors are dumping cash to hold the largest overweight position in bonds since 2009, surveys show.
Bank of America analyst Michael Hartnett said the big change is not the macro outlook but the expectation that inflation and yields will be lower in 2024.
2023-11-14 14:42:02
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