Influenced by Target’s weak earnings report and meager retail sales data, US equities opened lower in Wednesday’s first trading (17th), US bond yields rallied, and tech stocks wept. Only Apple reversed the trend and rose. Fed meeting minutes after release, the intraday decline in US equities is convergent and the US dollar has trimmed its gains, but the four major indices are still depleted.
that fingerWednesday closed down 1.25%,half sharefell by 2.48%,Dow JonesHe finished more than 170 points on Wednesday, scoring a streak of five straight wins, with the S&P down 0.72%, the worst one-day performance in three weeks.
In terms of data, the U.S. Department of Commerce released data Wednesday that retail sales rose 0% in July, below market expectations, mainly reflecting a drop in gasoline prices and a decline. in new car sales.
In terms of politics and economics, the minutes of the US Federal Reserve’s July 26-27 meeting released Wednesday showed that Fed officials believe inflation is still unacceptably high and the Fed will continue to actively raise interest rates until to inflation. is a clear slowdown, but this could lead to a higher economic cost and, for the first time, the Fed has recognized the risk of excessive rate hikes, arguing that the pace of rate hikes may have slowed at some point in the future. .
The war between Ukraine and Russia continues: on this delicate occasion, China announced Wednesday that it will send troops to join Russia in a joint military exercise, while continuing to accuse the United States of exacerbating the crisis in Taiwan Strait. In this regard, the US embassy and consulate in China retweeted and criticized one after another. The party that seeks to change the status quo across the Taiwan Strait has always been China.
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 592 million and the number of deaths exceeded 6.44 million. More than 12.4 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 (17):
Focus the actions
The five kings of technology are only Apple. apple (AAPL-USA) increased by 0.88%; Half (META-US) fell by 2.57%; Alphabet (GOOGL-US) fell by 1.77%; Amazon (AMZN-USA) fell by 1.85%; Microsoft (MSFT-USA) fell 0.26%.
Dow JonesMore than half of the constituent stocks closed in the dark, Boeing (BA-US) fell by 2.84%; Walgreens United Boots (WBA-USA) fell by 2.78%; Disney (DIS-USA) fell by 1.72%; 3M (MMM-USA) fell by 1.88%; IBM (IBM-United States) increased by 0.9 percent.
half shareThe constituent titles killed the Quartet. Analog Devices (ADI) (ADI-USA) fell by 4.98%; Micron (MU-USA) fell by 3.51%; AMD (AMD-USA) fell by 1.93%; NVIDIA (NVDA-USA) fell by 2.88%; Applied Materials (AMAT-USA) fell by 2.30%; Texas Instruments (TXN-USA) fell by 3.63%; Qualcomm (QCOM-USA) fell 1.00%.
Taiwan’s ADR stock fell to the ground. TSMC ADR (TSM-USA) fell by 0.83%; ASE ADR (ASX-USA) down by 1.43%; UMC ADR (UMC-USA) fell by 1.54%; Chunghwa Telecom ADR (CHT US) fell by 0.73%.
Company news
apple (AAPL-USA) rose 0.88 percent to $ 174.55 per share. Bloomberg reported that Apple is expected to hold its first fall conference in 2022 on September 7, and the new flagship iPhone 14 series is about to debut. The Wedbush investment bank raised its price target on Apple to $ 220 from $ 200 on Wednesday, as demand for the iPhone remained stable as Apple enters the next cycle.
Unlike Walmart (WMT-USA), The home deposit (HD-USA), Destination department store (TGT-USA) The second quarter earnings report was poor. Due to the impact of costs, inventory and price cuts, adjusted net earnings per share was $ 2.19, which was far below the expected $ 3.07, compared to 1.2 % in the second quarter.
Analog Devices (ADI) (ADI-USA) fell 4.98% to $ 170.13 per share. ADI announced the latest financial report, revenue increased 77% year-on-year, exceeded $ 3 billion for the first time, and adjusted net earnings per share increased 47% to a record 2, $ 52 Financial forecasts were also better than market expectations, but ADI warned of economic uncertainty Begins to affect orders.
Jim Ratcliffe, the UK’s richest man and founder of chemical giant Ineos (Ineos), was rumored to be interested in buying Manchester United on Wednesday.MANU-US) rose 6.88 percent to $ 13.67 per share. Elon Musk, the richest man in the world, said on Tuesday he would buy Manchester United, but later changed his mind and said it was a joke, sparking heated discussions on the transfer market.
The meme stock boom is back and retail funds continue to support and furniture retailer Bed Bath & Beyond (BBBY-US) was up 11.77% to $ 23.08 per share, up for the sixth consecutive trading day, but after GameStop President Ryan Cohen was reportedly intending to sell all shares of BBBY, the price BBBY’s stock plummeted more than 20% after the market.
Tencent Holdings ADR (TCEHY-US) was up 3.12% to $ 40.01 per share. Tencent announced its second quarter financial report on Wednesday. Affected by the Chinese government’s crackdown on the gaming industry, new coronation outbreak control measures, and economic weakness affecting advertising sales, revenue has fallen for the first time since its listing and its net profit has fallen. more than 50% year over year.
Economic data
- US retail sales in July posted a monthly rate of 0%, expected to be 0.1%, the previous value of 0.8%
- U.S. retail sales in July posted an annual rate of 10.02%, up from 8.73% previously
- Major retail sales in the US in July posted a monthly rate of 0.4%, expected -0.1%, the previous value of 0.9%
Wall Street Analysis
While July retail sales data was disappointing, with data showing weakness in areas such as auto sales, consumer spending continued in other areas. Stan Shipley, an analyst at Evercore ISI, believes that a recession is not imminent, but that it should generally hit Treasuries, the dollar and retail stocks.
The Fed’s aggressive interest rate hikes to counter inflation have brought recession risks, weighing on market sentiment. Christopher Low, chief economist at FHN Financial, said that while the FOMC minutes still emphasized the need to curb inflation, some officials began to fear that excessive Fed tightening could cause problems.
Marco Pirondini, head of US equities and Amundi’s portfolio manager, commented: “With corporate earnings expected to slide in 2023, the stock market is very likely to retreat from this level, they expect the Fed to continue to increase interest rates, the economy will cause it to slow down and possibly even enter a recession. The odds of a recession next year are above average, so a more prudent investment strategy is important. “
Chris Larkin, chief executive of trading strategy at E-Trade Financial, said: “It is not surprising that the market is taking a break from the rally this summer as investors are looking for signs of slowing in rate hikes. interest that fueled the stock. market rallies and encouraging investors to stay agile and pay attention to the market. Be prepared for volatility as the stock market may not be out of danger yet. “
The data is updated before the deadline, please refer to the actual quotation.
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