The day before Federal Reserve Chairman Jerome Powell’s speech, US bond yields continued to climb on Tuesday (29).Dow JonesClosed almost flat,That fingerS&P andtax halfThe three major indices closed lower in a narrow range, engulfing the black for the third consecutive trading day.
In terms of politics and economics, Wall Street expects Powell’s speech on Wednesday could bolster market expectations for a slower pace of interest rate hikes in December, as market participants also await key economic data this week. expecting the United States to create new nonfarm jobs in November The unemployment rate is expected to remain unchanged at 3.7%, its lowest since December 2020.
New York Federal Reserve Bank President Williams (John Williams) said on Monday that US inflationary pressures are expected to ease in the coming year, but that inflation is too high and further monetary policy tightening is needed. The Fed’s big hawk, James Bullard, president of the Federal Reserve Bank of St. Louis, believes the terminal interest rate needs to rise to the 5%-5.25% range to be tight enough to meet the goal of reducing lending. ‘inflation.
According to the latest data from CME’s FedWatch Tool, traders expect the probability of the Fed raising interest rates 2 yards to 4.25% and 4.5% in December to exceed 68%.
The railroad strike crisis in the United States has hit. President Biden on Tuesday urged Congress to pass legislation to prevent railroad strikes. While this de-risks industrial stocks, the biggest sticking point between labor and capital has not yet been resolved.
Railroad unions, who say Congress enforcing labor deals without changing paid sick leave will worsen supply chains, agreed a nationwide strike could be held in December. The outlook for collective bargaining is bleak.
The year-end shopping season in the United States is approaching: according to data from the National Retail Federation (NRF), during the five-day period from last Thursday’s Thanksgiving to this Monday’s “Cyber Monday”, the number of businesses and online shoppers broke records: the number reached 197 million, an annual increase of 9%, highlighting that under the pressure of rising inflation, there is still no obstacle to people’s willingness to visit shopping malls during the festival.
Oil prices and energy stocks rose on Tuesday after the Organization of the Petroleum Exporting Countries and its allies (OPEC+) meet on Dec. 4 and may cut output further in response to weak market conditions.
The global novel coronavirus pneumonia (COVID-19) epidemic continues to spread. Ahead of the deadline, data from Johns Hopkins University (Johns Hopkins University) showed that the number of confirmed cases worldwide exceeded 641 million, and the number of deaths exceeded 6.63 million. More than 12.7 billion doses of vaccines have been administered in 184 countries around the world.
The performance of the four major US stock indexes on Tuesday (29):
Focus on the actions
The five kings of science and technology are almost all black. apple (AAPL-USA) down 2.11%; Alphabet (GOOGL-USA) down by 0.90%; Microsoft (MSFT-USA) down 0.59%; Half (META-USA) increased by 0.63%; Amazon (AMZN-USA) fell 1.63%.
Dow JonesThe constituent actions were mixed. Sales force (CRM-USA) down by 1.31%; disney (DIS-US) down 1.05%; Visa (V-USA) fell 1.04%; American Express (AXP-USA) increased by 2.35%; Dow Chemical (DOW-US) increased by 2.32%; boeing (BA-USA) increased by 2.03%.
tax halfThe constituent shares were generally in the doldrums. Nvidia (NVDA-USA) down by 1.19%; Applied Materials (AMAT US) down 0.21%; Texas Instruments (TXN-USA) down 0.012%; microns (MU-US) down by 1.13%; intel (INTC-US) up by 0.61%; Qualcomm (QCOM-USA) down 0.97%; AMD (AMD-USA) increased by 0.27%.
Taiwanese stock ADR collectively received dividends. TSMC ADR (TSM-USA) +0.14%; ASE ADR (ASX-USA) +0.47%; UMC ADR (UMC-USA) +0.56%; Chunghwa Telecom ADR (US CHT) increased by 1.16%.
Company news
apple (AAPL-USA) fell 2.11% to $141.17 per share. China’s strict anti-epidemic measures have aroused public dissatisfaction, and demonstrations have broken out in many places. Investors are still concerned about the risks facing Apple’s supply chain. Foreign media expect the production capacity gap of high-end iPhone 14 Pro models to be close to 6 million units.
Chevrons (Chevrons) (CVX-USA) rose 1.53% to $181.03 per share. The Biden administration on Tuesday granted Chevron a limited license to resume oil production in Venezuela, a possible first step toward ending a years-old US embargo on Venezuelan oil production.
HSBC ADR (HSBC-USA) rose 4% to $30.45 a share. HSBC has agreed to sell its Canadian business to the Royal Bank of Canada (RBC) for $10.1 billion, with the deal closing by the end of next year.
AMC Television Network (AMCX-USA) fell 5.34% to $19.48 per share. Christina Spade, CEO of AMC Television Network, announced her resignation after accepting the job in September and the company will lay off about 20% of its U.S. workforce.
Economic data
- US FHFA Home Price Index for September reported an annual rate of 11%, the previous value of 12%
- The US FHFA Home Price Index in September reported a monthly rate of 0.1%, expected – 1.2% and the previous value – 0.7%
- The unadjusted S&P/CS 20 major city house price index annual rate was 10.4% in September, 10.8% expected, and prior value was 13.1%.
- S&P/CS 20 Large City Nonseasonally Adjusted House Price Index Monthly Rate was -1.2%, -1.2% expected, and prior to -1.3%
- US Economic Review Board Consumer Confidence Index reported 100.2 in November, 100 expected, prior value 102.5
Wall Street analysis
Alicia Levine, chief strategist at BNY Mellon Wealth Management, said: “Even in the early stages of a recession, S&P 500 earnings can still fall by 20% and ultimately there is still a risk. This year is a year of transition and there will be higher interest rates next year, the market has not yet assessed the exact impact on the real economy.”
Deutsche Bank analyst David Folkerts-Landau warned: “The US economy could enter a recession in mid-2023, which will trigger a sharp decline in the stock market. The US stock index is expected to plunge 25%. The market shareholder will regain its lost ground.”
The numbers are all updated before the deadline, please refer to the actual quotation
