The US Producer Price Index (PPI) in September exceeded expectations and the minutes of the “hawkish” meeting of the Federal Reserve eliminated the hike brought by the PepsiCo earnings report. The four major US equity indices swung lower on Wednesday (12th) and the S&P fell 0.33% to 3,577.03 points, closed negative for the sixth consecutive trading day and hit a new 52-week low. .TSMC closed more than 1% on the eve of the ADR law.
Investors are paying close attention to inflation data: the US announced Wednesday that the PPI index remained strong in September, with the annual growth rate and monthly growth rate rising to 8.5%, respectively. and 0.4%, both above market expectations by 8.4% and 0.2%. The pressure of expansion is difficult to relieve.
The September U.S. Consumer Price Index (CPI) will be released on Thursday.Wall Street estimates that CPI data will continue to cool by 8.1% and core CPI data will continue to rise by around 6%. , 5%.
Minutes of the September Federal Open Market Committee (FOMC) meeting, released by the Federal Reserve on Wednesday, showed that the central bank will raise interest rates to a restrictive level in the short term and hold them for a period of time in order to bring inflation back to its 2% target.
Morgan Stanley analysts believe the Fed is expected to raise interest rates by another 3 yards in November as the minutes clearly did not oppose the current pace of rate hikes.
Recession fears continued to weigh on Wall Street, with US President Joe Biden warning Tuesday that the US economy could slide into recession, but that any recession would be “very mild” and that the US economy is tough enough to withstand the storm.
The latest research report by Allianz, a well-known financial services institute, predicts that after three consecutive years of record growth, global household wealth will contract this year for the first time since the 2008 financial crisis, with a decline of 2% expected.
US Treasury Secretary Janet Yellen said Wednesday that the global economy is facing strong headwinds as the US struggles to bolster its own supply chains and defend against geopolitical threats from Russia and other countries.
The UN General Assembly passed a resolution on Wednesday with 143 in favor, five against and 35 abstentions, condemning Russia’s illegal annexation of parts of Ukraine. Foreign media reported Wednesday, citing sources, that the US government is considering a total ban on Rusal’s aluminum products.0486-HK) blacklisted in response to the further escalation of the Ukrainian-Russian war.
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 622 million and the number of deaths exceeded 6.56 million. More than 12.7 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 (12):
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The five heavenly kings of science and technology float with each other. apple (AAPL-USA) fell by 0.46%; Half (META-US)) fell by 0.81%; Alphabet (GOOGL-US) increased by 0.39%; Amazon (AMZN-USA) increased by 0.61%; Microsoft (MSFT-USA) increased by 0.15%.
Dow JonesThe constituent actions were mixed. Walgreens United Boots (WBA-USA) fell by 2.05%; Walmart (WMT-USA) fell by 1.13%; Boeing (BA-US) fell by 0.87%; Coke (KO-US) increased by 1.21%; JPMorgan (JPM-USA) increased by 1.62%.
half shareThe constituent titles were essentially weak. Qualcomm (QCOM-USA) fell by 1.26%; AMD (AMD-USA) increased by 0.38%; NVIDIA (NVDA-USA) fell by 0.74%; Applied materials (AMAT-USA) fell by 0.38%; Texas Instruments (TXN-USA) fell by 1.24%; Micron (MU-USA) fell by 1.79%.
Taiwan’s equity ADRs all recovered. TSMC ADR (TSM-USA) rose by 1.04%; ASE ADR (ASX-USA) rose by 0.87%; UMC ADR (UMC-USA) rose by 4.29%; Chunghwa Telecom ADR (CHT US) increased by 0.65%.
Company news
apple (AAPL-USA) fell 0.46 percent to $ 138.34 per share. Apple will release its fourth quarter 2022 financial report on October 27. Citi is optimistic about Apple’s financial report and market outlook. Analysts believe that, considering Apple’s better-than-expected performance in the first half of this year, consumers prefer the higher-priced iPhone 14. Pro models, plus a $ 90 billion treasury stock plan to provide support for the share price, they predict that Apple’s share price will slightly exceed the broader market.
The food and drink giant PepsiCo (PEP-USA) was up 4.18% to $ 169.39 per share, leading the strength of consumer stocks.
The company announced an outstanding financial report for the third quarter of fiscal year 2022 ahead of market, with revenue of $ 21.97 billion and adjusted net income of $ 1.97 per share, all better than market expectations. % from 10% and earnings per share growth in constant currency forecast at 10% from 8%.
TikTok’s parent company, ByteDance, plans to expand into music streaming, Spotify (SPOT-US) rose sharply at the start of trading and then fell, closing up 1.28% at $ 83.18 per share.
Microsoft (MSFT-USA) rose 0.15 percent to $ 225.75 per share. Microsoft celebrates the 10th anniversary of the Surface tablet with three new Surface computers, including the Surface Laptop 5 laptop, Surface Pro 9 2-in-1, Surface Studio 2+ all-in-one, and more.
Moderna announced it will join forces with Merck to develop and commercialize a cancer vaccine, Moderna (MRNA-USA) was up 8.28 percent to $ 130.72 per share.
Economic data
- The US PPI annual growth rate in September was 8.5%, expected to be 8.4% and the previous value was 8.7%
- September US PPI Monthly Growth Rate Bring Back to 0.4%, Expected 0.2%, Previous Value – 0.2%
- The US core PPI annual growth rate in September was 7.2%, forecast at 7.3% and the previous value of 7.2%
- The US core PPI monthly growth rate in September was 0.3%, expected to be 0.3% and the previous value was 0.3%
Wall Street Analysis
“Investors fear that tighter monetary policy, or tighter financial conditions, could drain liquidity and cause more damage to the global economy,” said Quincy Krosby, chief global strategist at LPL Financial.
“If Thursday’s CPI data surpasses market expectations, the tepid investor response to Wednesday’s minutes and PPI report could be tested and the markets could have a tough day on Thursday,” Krosby predicted.
Analysts at Mizuho Securities believe the general economic environment in the post-epidemic era is essentially different from that between 1990 and March 2020. Investors are advised not to buy on the downside right now, nor to expect the Federal Reserve save the market. , because the hard days for US equities are yet to come.
The data is updated before the deadline, please refer to the actual quotation.
