With good news from Walmart and Home Depot, investor risk appetite increased on Tuesday (16) and retail stocks were supportive. Stocks, chip stocks rose and the four major indices closed mixed.
that fingerIt closed down 0.19%,half shareit fell by more than 1%. The S&P was up 0.19%, capped by its 200-day moving average.Dow JonesIt was up nearly 240 points and closed above the 34,000 mark for the first time since the beginning of May.
In terms of data, the start of housing in the US fell 9.6% in July to 1.446 million units, lower than market expectations and was the lowest since February 2021, highlighting the decline. of housing demand and the increase in builders’ inventories for business adjustments.
The Atlanta Fed’s GDPNow model, which tracks economic data in real time, was subsequently adjusted to predict a decline in US gross domestic product (GDP) in the third quarter from 2.5% last week.
In terms of politics and economics, US President Joe Biden signed the “Inflation Reduction Act” at the White House on Tuesday, a move that symbolized a major victory for the Biden administration and Democrats ahead of the midterm elections. .
Markets await the minutes of the Federal Reserve meeting on Wednesday for clues on the Fed’s assessment of the economic and inflationary outlook and the direction of monetary policy.
Ahead of the Federal Open Market Committee (FOMC) meeting in September, the US Consumer Price Index (CPI) and Producer Price Index (PPI) both showed signs of a possible spike in inflation in July. . According to CME’s FedWatch tool, traders are estimating a roughly 60% chance that the Fed will raise rates by 2 in September.
According to Bank of America’s August managers survey, professional investors remain bearish, but not apocalyptic, on expectations that rising inflation and an interest rate shock will end in the coming quarters.
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 591 million and the number of deaths exceeded 6.44 million. More than 12.4 billion doses of the vaccine have been administered in 184 countries around the world.
The performance of the four major US equity indices on Tuesday (16):
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Of the five kings of technology, only Amazon is spared. apple (AAPL-USA) fell by 0.092%; Half (META-US) fell by 0.79%; Alphabet (GOOGL-US) fell by 0.31%; Amazon (AMZN-USA) increased by 1.12%; Microsoft (MSFT-USA) fell 0.26%.
Dow JonesThe constituents were led by Walmart. Walmart (WMT-USA) increased by 5.11%; Home Depot (HD-USA) increased by 4.06%; Walgreens United Boots (WBA-USA) increased by 2.36%; 3M (MMM-USA) fell by 0.77%; Salesforce (CRM-USA) fell by 0.77%.
half shareThe constituent titles were essentially weak. microns (MU-USA) fell by 1.30%; AMD (AMD-USA) fell by 0.80%; NVIDIA (NVDA-USA) fell by 0.80%; Applied materials (AMAT-USA) fell by 1.18%; Texas Instruments (TXN-USA) fell by 1.10%; Qualcomm (QCOM-USA) fell by 1.38%.
All ADRs in Taiwanese shares are sold out. TSMC ADR (TSM-USA) down by 1.77%; ASE ADR (ASX-USA) down by 0.79%; UMC ADR (UMC-USA) fell by 1.51%; Chunghwa Telecom ADR (CHT US) fell 0.39%.
Company news
American retail giant Walmart (WMT-USA) rose 5.11 percent to $ 139.37 per share. Aided by discounts to clear merchandise and lower fuel prices, Walmart posted better-than-expected revenue and profits in the second quarter, with revenue up more than 8% and a slight upward revision of the profit forecast for the whole year.
The home depot (HD-USA) was up 4.06 percent to $ 327.38 per share. Demand for home improvement projects continued to be strong, and Home Depot’s second-quarter earnings and revenue both exceeded analysts’ expectations.
The bullish gains of the two major retailers also strengthened other retail stocks, with Target (TGT-USA) was up 3.96%, Best Buy (BBY-US) rose 4.45%, Ross department stores (ROST-US) increased by 2.75%.
Home furniture retailer Bed Bath & Beyond (BBBY-US) Under the frenzied knock-in of retail investors, the heavy volume went up by more than 60% at one time and the switch mechanism was repeatedly tapped, resulting in a suspension of trading and the final closing bonus was 29.06% to $ 20.65 per share. RC Ventures, president of GameStop, Ryan Cohen, revealed that it has purchased more than 1.6 million out-of-the-money forward calls in Bed Bath & Beyond, with strike prices ranging between $ 60 and $ 80.
Video conferencing company Zoom Video Communications (ZM-USA) fell 3.57 percent to $ 109.19 per share. Growing competition from Microsoft Teams could cause Zoom’s stock to drop by more than 20%, and a weaker macro environment also carries profit risks for Zoom, Citi analysts said.
American airlines (AAL-USA) rose 1.11 percent to $ 15.50 per share. American announced the purchase of 20 supersonic Overtures from Boom Supersonic, the second firm order for Boom in two years after United last year, stating that it would purchase another 40 Overtures in the future.
Economic data
- The initial monthly rate of building permits in the United States was -1.3% in July, the previous value was 0.1%
- The initial value of the annualized total number of building permits in the United States in July reported 1.674 million units, the expected 1.65 million units and the previous value of 1.696 million units
- The monthly annualized housing commencement rate in the US in July was -9.6%, the previous value was 2.4%
- The annualized total of new homes starts in the US in July recorded 1,446 million units, expected to be 1.54 million units and the previous value of 1,599 million units
- US industrial production in July posted a monthly rate of 0.6%, expected to be 0.3%, the previous value – 0.2%
- The annual rate of industrial production in the United States in July was 3.90%, the previous value was 4.02%
Wall Street Analysis
“Consumers are struggling with inflation in an environment of rising rates, but the strength of these retailers’ forecasts, and even second-quarter earnings per share, was unexpected,” said Jason Pride, chief investment officer. Glenmede Private Wealth.
Shawn Cruz, trading strategist at TD Ameritrade, said: “The real reason behind this rally is that the worst is out of the question, look at the economic data, it’s not great, but it’s not that bad, and when you look at corporate earnings, it’s not. not even that bad. Good, but it’s definitely not a gamble. “
Seema Shah, chief global strategist at Principal Global Investors, commented: “With Fed rate expectations stabilizing and inflation spike, a short-term bear market rally is possible, however, earnings concerns are on the rise. increasing as pressure on corporate earnings increases and demand weakens, so a sustained rebound is unlikely. “
Mark Haefele, chief investment officer of UBS Global Wealth Management, warned investors against chasing the rally, noting: “We anticipate further volatility in the market in the future and recommend adjusting the portfolio to accommodate a variety of scenarios. . With inflation still high, we are bullish on value stocks, including global energy, and investors may consider investing in global healthcare stocks or high dividend stocks as a defense in an uncertain economic environment. “
The data is updated before the deadline, please refer to the actual quotation.
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