The market sentiment was cautious ahead of the heavy inflation announcement in the United States, while the weak price index report released by China exacerbated concerns about an economic slowdown. The major U.S. stock indexes were mixed on Monday (10th).
before the deadline,Dow Jones Industrial Averagerose more than 100 points or nearly 0.3%,Nasdaq Composite Indexfell nearly 0.01%,S&P 500 Indexup nearly 0.2%,Philadelphia SemiconductorThe index rose more than 1%.
Major U.S. stock futures traded lower after a weak price index in China stoked fears of a global recession ahead of a blockbuster U.S. inflation report later in the week.
The latest data showed that China’s consumer price index (CPI) fell to zero in June, and the producer price index (PPI) also fell further, highlighting continued weak demand and fueling investor concerns about deflation.
On the other hand, traders are waiting for the CPI released by the United States on Wednesday (12th) and the producer price index (PPI) report released the next day, looking for future interest rate policy trends of the Federal Reserve (Fed).
U.S. stocks have been on the back foot since the start of the second half of the year amid concerns that economies will struggle under high interest rates as central banks continue to fight rising prices. U.S. Treasury Secretary Yellen recently said that she does not rule out the possibility of a U.S. recession, noting that inflation is still too high.
U.S. stocks could pull back as the artificial intelligence (AI) boom enters the digesting phase, with recession risks remaining high, Citi strategists said on Monday. Volatility tends to rise after a sharp decline in market breadth. Strategists also said that by mid-2024, the economic recession problem can be effectively resolved, and the policy of global central banks is starting to turn optimistic.
In terms of industries, strategists recommend focusing portfolios on high-quality stocks and selectively picking cyclical stocks. IT stocks were also downgraded to neutral as large-cap growth stocks may pull back, although Citigroup strategists said investors could still be prepared to buy back on dips.
Morgan Stanley analyst Michael Wilson, one of the most pessimistic about U.S. stocks, currently believes that given rising stock valuations, rising interest rates and reduced liquidity, the company’s performance guidance will be more important than usual this time, better than expected May no longer be enough. He expects analysts to further cut earnings estimates in the second half of the year.
As of 21:00 on Monday (10th) Taipei time: Focus stocks:
Rivian(RIVN-US) fell 3.03 percent to $23.95 a share in early trade
Rivian, an American electric vehicle start-up company, rose 4.40% to $25.81 per share before the market. The stock rebounded strongly last week, gaining about 48%. Wedbush analysts raised their target price on Rivian from $25 to $30 per share, and believe that they will see more bullish news when looking ahead to Rivian’s performance in the next 12 to 18 months.
Huida (NVDA-US) rose 0.31% to $426.34 a share in early trade
About Huida’s A800 chip being banned, the chip price has risen rapidly, and the market price has changed from 15 days agoRMB 90,000 yuan/piece to nowRMB About 110,000 yuan. Leon Cooperman, a hedge fund tycoon, said when talking about Huida’s current valuation: Everything will eventually become a mess, and it will fall from 200 times the price-to-earnings ratio than from 8 to 9 times. heavier.
Meta Platforms(META-US) rose 2.50% to $297.78 a share in early trade
Shares of Facebook parent Meta Platforms rose about 1 percent in premarket trading. Data tracker Quiver Quantitative said Meta’s new online platform, Threads, has attracted more than 100 million users since it launched last Wednesday. Meta CEO Mark Zuckerberg said last week that Threads’ rapid growth has “far exceeded our expectations.”
Today’s key economic data: U.S. May wholesale inventory monthly growth rate is expected to be -0.1%, previous value -0.1% U.S. May wholesale inventory sales monthly growth rate is expected to be 0.3%, previous value is 0.2% Wall Street analysis:
Nigel Green, chief executive of DeVere Group, said that as the second-quarter earnings season approaches, investors should expect increased volatility in U.S. stocks in the coming weeks and prepare for the worst reporting season since the end of the epidemic. Green noted that there were a lot of negative forecasts among businesses last quarter, and it’s likely to be seen to be true at a time when a perfect storm of several major economic headwinds is brewing.
Edward Yardeni, president of Yardeni Research, said an unexpected decline in inflation indicators this week could spur bulls, making theS&P 500 IndexBreak out of this range. On the other hand, higher-than-expected inflation data could fuel concerns that the Fed will have to tighten monetary policy to steer the economy into recession, the only clear path to lower inflation.
2023-07-10 13:46:46
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