Wall Street digested mixed earnings reports, Federal Reserve officials “hawked”, and U.S. bond yields fell, reflecting concerns about an economic slowdown. The U.S. stock index fluctuated lower on Thursday (20th).
Tesla’s financial report was poor, and its stock price collapsed by nearly 10%, dragging down consumer discretionary stocks, and energy stocks were also the hardest hit. However, TSMC said that the double rate (gross profit margin, profit margin) in the first quarter exceeded the standard, and TSMC’s ADR rose by more than 2%.
Dow Jones IndexIt closed down more than 110 points.the S&P 500 index andNasdaq Composite Indexfell 0.6% and 0.8%, respectively,fee halfThe index was nearly flat.
On the data front, a fresh batch of economic data heralded a contraction, and the slowdown could be steeper than expected. The Philadelphia manufacturing index hit the lowest level in May 2020, while the number of new jobless claims in the U.S. increased by 5,000 last week to 245,000, more than expected. At the same time, U.S. existing home sales fell 2.4% in March, below The expected 1.5%.
In terms of politics and economy, after the hawkish general and St. Louis Federal Reserve Bank President James Bullard (James Bullard) supported further interest rate hikes, the “Queen of Eagles” Cleveland Federal Reserve Bank President Loretta Mester expressed his support for another Raise interest rates, but at the same time remind you to maintain a cautious attitude and pay attention to the potential economic risks brought about by the turmoil in the banking industry.
Federal Reserve (Fed) Governor Waller (Christopher Waller) said Thursday that the banking crisis has been downplayed, but the authorities must enhance the ability to deal with the crisis.
Economists generally expect the Federal Reserve to raise interest rates by a quarter in May, followed by keeping them on hold through the rest of 2023, according to a Reuters poll of 105 economists. BBH Global Currency Strategy analyzed the Fed’s latest Beige Book and predicted that the Fed will raise interest rates by 1 yard next month.
“Bloomberg” quoted sources on Thursday as saying that US President Biden plans to sign an executive order in the next few weeks to restrict US companies’ investment in key areas of the Chinese economy, involving chips, artificial intelligence and quantum technology investments.
U.S. Treasury Secretary Yellen said in a major speech on Thursday that U.S.-China relations are not a zero-sum game, and that the outcome of U.S.-China economic and trade decoupling would be catastrophic. She called on the two countries to establish a “constructive and fair” economic relationship.
The performance of the four major US stock indexes on Thursday (20th):
Focus stocks
The five kings of science and technology are almost wiped out. Amazon (AMZN-US) down 0.47%; Meta (META-US) down 1.22%; Apple (AAPL-US) fell 0.58%; Alphabet (GOOGL-US) rose 1.07%; Microsoft (MSFT-US) fell 0.81%.
Dow JonesMore than half of constituent stocks fell. Verizon Communications (VZ-US) down 3.65%; Cisco (CSCO-US) down 3.04%; Traveler (TRV-US) down 1.81%; Dow Chemical (DOW-US) down 1.31%; Walgreens Boots (WBA-US) rose 1.55%.
fee halfConstituent stocks have their ups and downs. Colin R&D (LRCX-US) soared 7.23%; Micron (MU-US) rose 1.34%; Huida (NVDA-US) down 2.96%; AMD (AMD-US) up 0.19%; Applied Materials (AMAT-US) rose 3.67%; Texas Instruments (TXN-US) down 0.26%; Qualcomm (QCOM-US) up 0.084%.
Among the ADRs of Taiwan stocks, TSMC performed the best. TSMC ADR (TSM-US) rose 2.36%; ASE ADR (ASX-US) up 0.14%; UMC ADR (UMC-US) down 0.12%; Chunghwa Telecom ADR (CHT US) rose 0.17%.
Corporate News
TSMC ADR (TSM-US) rose 2.36% to 89.29 US dollars per share, the conversion price was 546.54 yuan, and the discount premium rate reached 6.54%. TSMC’s double rate (gross profit margin, profit margin) in the first quarter exceeded expectations. It is estimated that the consolidated revenue in the second quarter will be US$15.2 billion to US$16 billion, and the gross profit margin will be between 52% and 54%. This year’s capital expenditure will remain at 32 billion to $36 billion.
Tesla (TSLA-US) slumped 9.75% to $162.99 per share, its worst one-day performance since Jan. 3, and other automakers also fell.
Affected by continuous price cuts in the first quarter, Tesla’s total gross profit margin (19.3%) fell to the lowest in two years. Tesla Chief Executive Elon Musk said Tesla could sacrifice profits at its leading peers to boost sales during the recession and deal with growing competition in China.
apple (AAPL-US) closed down 0.58 percent at $166.65 a share. India’s Deputy Minister of Electronics and Information Technology Rajeev Chandrasekhar pointed out that Apple’s investment in India and exports in the next few years may increase to 2 to 3 times the current level.
Chinese smart electric vehicle company U Power (UCAR-US) went public in the U.S. on Thursday, and rose more than 600% on the first day, closing at $43.18.
AT&T (T-US) closed down 10.41% to $17.65 per share, the biggest one-day drop since 2000. The company’s latest financial report is not satisfactory, with a net increase of more than 400,000 phone users for 11 consecutive quarters, but its free cash flow is only US$1 billion, which is not as good as market expectations.
key data
- U.S. initial jobless claims reported 245,000 last week, 240,000 expected, 240,000 previously
- The number of Americans continuing to receive unemployment benefits last week was reported at 1.865 million, expected to be 1.82 million, and the previous value was 1.804 million
- U.S. April Philadelphia Federal Reserve Manufacturing Index reported -31.3, expected -19.2, previous value -23.2
Wall Street Analysis
So far this earnings season, about 16 percent of companies in the S&P have reported results, with about 76 percent beating earnings estimates, according to FactSet data through Thursday.
William Northey, senior investment director of Bank of America Wealth Management, said: “These companies that announce their financial reports are not the factors that determine the ups and downs of the market. So far, the financial reports of US stocks have been mixed. Influenced by the financial reports of these companies.”
“If the Fed stays on hold, broad financial conditions should tighten, the economy should decelerate into recession, and stocks should fall sharply,” said Wolfe Research analyst Chris Senyek.
Marija Veitmane, senior multi-asset strategist at State Street Global Markets, commented: “Inflation will not disappear by itself. Whether the Fed has enough determination to destroy the economy to reduce inflation is still a question, and it seems that they still have enough. Determination.”
The numbers are all updated before the deadline, please refer to the actual quotation
