U.S. Stock Indexes Open Mixed as Investors Await Fed Decision and Monitor Government Funds Exhaustion Concerns

The major U.S. stock indexes opened mixed on Tuesday (2nd). Previously, U.S. Treasury Secretary Yellen said that government funds may be exhausted within a month, faster than expected. The remarks caused market concerns; at the same time, investors Waiting for the latest interest rate decision from the Federal Reserve (Fed).

before the deadline,Dow Jones Industrial Averagefell nearly 160 points or nearly 0.5%,Nasdaq Composite Indexfell nearly 25 points or nearly 0.2%,S&P 500 Indexfell nearly 0.4%,Philadelphia SemiconductorThe index rose nearly 0.4 percent.

Major index futures were lower ahead of the U.S. stock market open, while U.S. Treasuries edged higher as investors awaited the Federal Reserve’s interest rate decision and progress on the U.S. debt ceiling.

Although the market is sensitive to First Republic Bank (FRC-US) bailout temporarily put an end to the turmoil in the U.S. banking sector, but investors worried that lending would be curbed, slowing the U.S. economy under pressure from the most aggressive rate hikes in decades.EURThose fears were reinforced by data from the region, which showed banks were restricting lending more than expected.

Investor attention will then turn to the Fed, whose two-day policy meeting begins on Tuesday. The Fed is widely expected to raise interest rates by 1 yard, and may signal a willingness to delay further rate hikes.

In addition, U.S. Treasury Secretary Yellen said that if Congress does not raise or suspend the debt ceiling before June 1, it is estimated that the debt ceiling will be reached on June 1 at the earliest. Yellen urged Congress to take action as soon as possible to resolve the legal borrowing ceiling of US$31.4 trillion and protect the full trust and credit of the United States. The Treasury Department is suspending the issuance of state and local government securities to avoid breaching the debt ceiling.

business side,S&P 500 IndexConstituent companies announced their financial reports one after another on Tuesday, among which Uber announced its outstanding performance in the previous quarter before the market closed, while Starbucks (SUBX-US) will announce its latest financial report after the market close.

As of 21:00 on Tuesday (2nd) Taipei time:

Focus stocks:

Tesla (TSLA-US) rose 1.66 percent to $164.93 a share in early trade

Tesla raised the price of Model 3 and Model Y cars. The price of Model 3 in China starts fromRMB 229,900 yuan (the following units are the same) rose to 231,900 yuan, and the price of the Model 3 high-performance version also increased by 2,000 yuan. The price of Model Y in China is 263,900 yuan, and the price of the long-life version and high-performance version has also increased by 2,000 yuan. In the United States, the prices of Model Y and Model 3 have increased by $250 across the board.

BP (BP-US) fell 7.92% in early trade to $36.84 per share

The company’s latest financial report shows that adjusted net profit in the first quarter was US$4.96 billion, an estimated US$4.28 billion; adjusted EBIT profit was US$9.22 billion, an estimated US$8 billion. BP expects oil prices to remain high in the second quarter, and European natural gas and Asian liquefied natural gas prices will be supported by the recovery of Chinese natural gas demand, restocking of European gas storage and coal-to-gas conversion.

Uber(UBER-US) rose 6.22 percent to $34.77 a share in early trade

Uber, the ride-hailing service provider, announced its impressive financial report for the first quarter of the 2023 fiscal year before the U.S. stock market on Tuesday. The revenue and profit exceeded Wall Street analysts’ expectations. The company’s strong first-quarter results show that consumers continue to spend more on rides and deliveries despite an uncertain economic outlook and rising prices.

It is worth noting that the highlight of Uber’s last quarter’s earnings report was adjusted earnings before interest, interest, depreciation, and amortization (EBITDA) of $761 million, a record high for the company and far exceeding analysts’ expectations of $678.6 million.

Today’s key economic data:

• The revised monthly rate of U.S. durable goods orders in March is expected to be 3.2%, the previous value was 3.2%
• The monthly rate of U.S. factory orders in March is expected to be 1.1%, the previous value was -0.7%
• JOLTS job vacancies in the United States are expected to be 9.775 million in March, compared with 9.931 million in the previous value

Wall Street Analysis:

Fahad Kamal, chief investment officer of SG Kleinwort Hambros Bank Ltd. said: “The banking crisis seems to be resolved, and now it is time to focus on inflation. The market is swinging between relatively strong economic data and weak corporate forward expectations. There are conflicts because of concerns that the delayed effects of monetary policy could have an impact on corporate earnings.”