Investors digested a number of conflicting earnings reports, considering the Fed’s path to rate hikes, with data showing signs of slowing inflation.10-Year US Treasury YieldDropping below 4%, US equities again experienced volatility on Thursday (27).
Energy stocks followed the rise in oil prices, industrial stocks like Kaifa Heavy Industry and Boeing were in full swing, while Meta tumbled more than 24%.that fingerfell by more than 1.6%,half shareonly down by 1.5%.Dow JonesHe finished almost 200 points and returned to 32,000 points.
In terms of data, the U.S. Department of Commerce announced that the quarterly annual growth rate of U.S. gross domestic product (GDP) was initially 2.60%, a new high since the fourth quarter of 2021. It should be by 2.4%, and the previous value was -0.6% The economy shed the contraction pattern in the first half of the year.
Inflation data also slowed, with the Fed’s preferred inflation indicator, the Personal Consumer Spending Price Index, up just 4.2% in Q3, down from 7.3% in the second quarter
As of the week of October 22, the adjusted number of Americans first receiving unemployment benefits was 217,000, less than market expectations and an increase of 3,000 from the previous value of 214,000. The labor market remained stable.
In terms of politics and economics, before the Federal Reserve holds its regular meeting next week, the European Central Bank decided on Thursday to raise interest rates again by 3 yards from 1.5% to 2.25. % to fight inflation which has reached a record level. further increases in interest rates are expected to follow.
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 629 million and the number of deaths exceeded 6.58 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 Thursday (27):
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The five kings of science and technology have fallen together. Half (META-US) fell by 24.56%; Alphabet (GOOGL-US) fell by 2.85%; Microsoft (MSFT-USA) fell by 1.98%; Apple (AAPL-USA) fell by 3.05%; Amazon (AMZN-USA) fell by 4.06%.
Dow JonesConstituent shares have increased more or decreased less. Pioneering heavy industries (CAT-US) rose by 7.71%; Boeing (BA-US) increased by 4.46%; McDonald’s (MCD-USA) increased by 3.31%; Honeywell (HON US) rose by 3.27%; Nike (UNITED STATES) fell by 2%.
half shareThe constituent titles were essentially weak. Wolfspeed (WOLF-US) fell by 18.59%; Qualcomm (QCOM-USA) fell by 2.89%; AMD (AMD-USA) fell by 1.89%; NVIDIA (NVDA-USA) increased by 2.17%; Applied materials (AMAT-USA) fell by 1.82%; Texas Instruments (TXN-USA) fell by 0.70%; Micron (MU-USA) fell by 5.84%.
Taiwan ADR received more red. TSMC ADR (TSM-USA) rose by 0.18%; ASE ADR (ASX-USA) rose by 0.19%; UMC ADR (UMC-USA) fell by 0.34%; Chunghwa Telecom ADR (CHT US) increased by 0.77%.
Company news
Morgan Stanley, Cowen and KeyBanc downgraded Meta shares on Thursday, citing higher spending after Meta’s sad earnings report. Half (META-US) plunged 24.56% to $ 97.94 per share on Thursday, hitting a new low since 2016. Last year, Facebook (Meta’s predecessor) was one of the five most valuable companies in the United States with a capitalization market of over 1 trillion dollars, while Meta is worth about 270 billion dollars, not even among the top 20.
Credit Suisse (CS-USA) shares plunged 20.04% to $ 3.83 per share.Credit Suisse third quarter net loss of 4.034 billionSwiss francapproximately $ 4.09 billion, far higher than analysts expected a loss of $ 567.93 millionSwiss francalso far below the profit of 434 million in the same period last yearSwiss franc。
McDonald’s (MCD-USA) was up 3.31 percent to $ 265.11 per share. McDonald’s said on Thursday that foot traffic at its U.S. restaurants was on the rise, helping the fast food giant post earnings of $ 2.68 per share on revenue of $ 5.87 billion last quarter, both beating estimates. analysts.
Twitter (TWTR-USA) rose 0.66% to $ 53.70 per share, slightly lower than Musk’s offer of $ 54.20 per share. Elon Musk will complete the $ 44 billion Twitter acquisition on Friday, and the New York Stock Exchange announced that Twitter will be suspended on Friday as Musk is close to completing the acquisition.
Economic data
- The initial monthly growth rate of US durable goods orders in September was 0.4%, expected at 0.6% and previous value of 0.2%
- The quarterly growth rate of US real GDP was initially brought back to 2.6%, forecast at 2.4%, the previous value – 0.6%
- Consumer spending in the United States in the third quarter increased at an annual rate of 1.4%, down from 2% in the previous quarter
- The US Core Personal Consumer Spending (PCE) Price Index in Q3 reported an annual growth rate of 4.5% in the initial, projected value of 4.5% and the previous value of 4.7 %
- The number of Americans who received unemployment benefits last week reported 217,000, expected 220,000, and the previous value of 214,000
- The number of people receiving unemployment benefits in the United States reported 1.438 million last week, is expected to be 1.388 million and the previous value was 1.383 million
Wall Street Analysis
“The pain investors experience during the earnings season is inevitable and necessary to move forward in the current cycle,” said Liz Young, SoFi’s head of investment strategy. “First the market crashes, then the profits subside, then the economy crashes, it’s just another check the to-do list before the cycle is actually completed.”
With recent data highlighting the economic impact of the Fed’s sharp rate hikes, investors expect the Fed to slow the pace of rate hikes after the November meeting.
Fiona Cincotta, senior financial markets analyst at City Index, believes stocks and currencies digest GDP data differently because it’s hard to tell what the Fed intends to do next.
“With all the rate hikes they have done so far, there has been a lot of monetary tightening going on as the Fed relies more on data,” said Alec Young, investment strategist at MAPsignals.
The data is updated before the deadline, please refer to the actual quotation.
