As the pace of U.S. bond selling accelerated, U.S. bond yields reflected higher interest rate expectations. In addition, Lyft collapsed 36% in a single day due to pessimistic financial forecasts. The momentum of large technology stocks was sluggish.That fingerandfee halfFriday (10th) closed down 0.6% and 1.6% respectively, and the S&P closed slightly red by 0.2%, still the worst weekly performance in nearly two months.Dow JonesIt closed up 169 points, or 0.5 percent.
After digesting a series of hawkish speeches by Federal Reserve officials and corporate earnings reports, the US stock market ended the week with a volatile trend. The three major indexes closed in the black for the first time this year.
In the bond market, when U.S. bonds fell,10-Year U.S. Treasury YieldIt was the biggest weekly gain since December last year, and the 2-year U.S. Treasury yield rose above 4.5%.
According to Refinitiv data, more than half of theS&P 500 IndexConstituent companies announced their financial reports, and 69% of them reported better-than-expected profits for the quarter.
S&P 500 IndexThe 11 sectors in the index were mixed on Friday, with energy stocks ending up 3.9 percent, leading the S&P, after Russia’s output cut plan pushed up oil prices, while consumer discretionary fell 1.2 percent.
Observing economic data, the University of Michigan consumer confidence index showed that US consumer confidence further improved in February, but households expect inflation to continue to rise in the next 12 months. The strong non-farm payrolls have caused US stocks to fluctuate this week. Next, investors will wait and see next week’s January Consumer Price Index (CPI) report for clues on the Fed’s path to raise interest rates.
Federal Reserve Bank of Philadelphia President Patrick Harker believes the Fed’s chances of controlling inflation without triggering a recession are increasing, but the key rate must rise to 5% and remain there until inflationary pressures gain momentum. ease.
Meanwhile, former U.S. Treasury Secretary Lawrence Summers has warned that financial markets are getting too complacent about inflation and that the Fed may need to tighten policy even further than investors expect.
In geopolitical news, less than a week after the U.S. shot down a Chinese surveillance balloon, the White House said on Friday that President Joe Biden had again ordered the shooting down of an object over Alaska. It is understood that the object is smaller than last week’s balloon, and it is unclear whether it is state or private.
In addition, a person familiar with the matter revealed that the United States is preparing to blacklist some Chinese companies for export on the grounds of supporting the military’s reconnaissance balloon program. It is estimated that the news will be announced as soon as Friday.
In terms of the epidemic, according to data from Johns Hopkins University in the United States, the number of confirmed cases worldwide has exceeded 672 million, and the death toll has exceeded 6.85 million. Nearly 13.3 billion doses of vaccines have been administered in 184 countries around the world.
The performance of the four major US stock indexes on Friday (10th):
Focus stocks
Among the five kings of science and technology, only Apple is the only one that is popular. apple (AAPL-US) up 0.25%; Meta Platforms (META-US) down 2.12%; Alphabet (GOOGL-US) down 0.46%; Amazon (AMZN-US) down 0.64%; Microsoft (MSFT-US) fell 0.20%.
Dow JonesConstituent stocks closed higher. Chevron (CVX-US) rose 2.1%; Walgreens (WBA-US) up 2.07%; UnitedHealth (UNH-US) up 1.75%; Merck (MRK-US) up 1.73%; Wal-Mart (WMT-US) up 1.55%; IBM (IBM-US) rose 1.38%; Disney (DIS-US) down 2.08%; Salesforce (CRM-US) down 3.82%.
fee halfConstituent stocks were led by Huida. Huida (NVDA-US) down 4.8%; AMD (AMD-US) down 2.08%; Marvell (MRVL-US) fell 1.24%; Qualcomm (QCOM-US) fell 1.18%; Asmol (ASML-US) fell 1.17%; Applied Materials (AMAT-US) fell 1.13%; Broadcom (AVGO-US) down 1.03%; Micron (MU-US) fell 0.6%; Intel (INTC-US) up 0.25%; Texas Instruments (TXN-US) up 0.46%.
Among the ADRs of Taiwan stocks, only Chunghwa Telecom closed higher. TSMC ADR(TSM-US) fell 1.37%; ASE ADR (ASX-US) fell 0.41%; UMC ADR (UMC-US) fell 1.08%; Chunghwa Telecom ADR (CHT US) up 0.11%.
Corporate News
Lyft(LYFT-US) closed down 36.4%. The company released disappointing guidance after the close on Thursday (9th), citing the removal of fuel surcharges by rival Uber as one of the main factors dragging down its revenue outlook.
At least seven analysts downgraded Lyft’s stock after the earnings report, citing pricing disadvantage, according to Barron’s.
Spotify (SPOT-US) closed up 3.6 percent on Friday. The company reported strong user growth in the fourth quarter late last month and forecast 500 million monthly active users this quarter.
Expedia (EXPE-US) closed down 8.6 percent. The online travel platform reported lower-than-expected revenue and profit for the latest quarter, but management is upbeat about the outlook for the travel industry this year.
Affirm(AFRM-US) fell 5.8 percent on Friday. Affirm, a buy-now, pay-later (BNPL) company, announced a few days ago that its latest financial report was weak, and it announced layoffs of 19%. Subsequently, Morgan Stanley downgraded its stock rating to “neutral” (equal weight) on the grounds that its products were too concentrated.
PayPal(PYPL-US) closed about 3 percent higher. PayPal recently announced mixed results for the last quarter, but its full-year profit was better than expected, and announced that CEO Dan Schulman will retire at the end of the year.
Economic data
- The initial value of the U.S. Consumer Confidence Index in February was 66.4, expected 65, and the previous value was 64.9
Wall Street Analysis
“Investors want to know what the bond market is trying to tell us that the economic indicators aren’t showing,” said Sam Stovall, chief investment strategist at CFRA Research. “Higher bond yields will have a bigger impact on faster-growing tech companies.” adverse effects.”
The US January CPI report due next week will be closely watched, especially after last week’s torrid jobs report and a series of hawkish comments from Fed officials.
Ian Lyngen, a strategist at BMO Capital Markets, said U.S. core inflation either indicated the need for Fed policy to reach further restrictive levels or reflected progress made by policymakers in securing inflation expectations anchored.
He believes that for now, the market consensus on the core CPI is expected to increase by 0.4% month-on-month, but investors expect the indicator to unexpectedly rise.
Shana Sissel, founder of Banríon Capital Management, said investors had recently priced in rate hikes, economic data and comments from Fed officials, which created intraday shifts as investors shifted their forecasts on how the central bank will act on future rates. At the same time, there are some mixed signals in the market, which is also the reason for the increase in volatility.
The numbers are all updated before the deadline, please refer to the actual quotation
