After the volatile trend, most of the U.S. stocks closed lower on Wednesday (25th), onlyDow JonesThrilling gains, US corporate earnings were bleak, making investors worried about the impact of the Federal Reserve’s (Fed) tightening policy on the economy.
Dow JonesOn Wednesday, it once fell more than 460 points in the intraday session. It ended in red but almost closed flat. In Microsoft (MSFT-US) issued pessimistic guidance and warned of a slowdown in cloud business growth this quarter,That fingerIt once collapsed by more than 2%, and the final decline converged but remained black.
S&P 500 IndexIt fell as much as 1.5% in the intraday session and ended slightly in the dark. Among the 11 major sectors, 5 sectors closed lower. Among them, utilities stocks fell the most, followed by industrial stocks.
The US stock earnings season continues, and as of Wednesday’s open, more than 19% of theS&P 500 IndexConstituent companies announced their fourth-quarter financial results, and 68% of them beat expectations. After the close, investors focused on Tesla (TSLA-US)、IBM(IBM-US) and other corporate financial reports, the two closed up 0.38% and 0.52% respectively on Wednesday.
In terms of geopolitical news, the United States announced that it would provide Ukraine with 31 American-made M1 Abrams tanks, and Germany also promised to provide Leopard 2 tanks to help Ukraine counter the potential Russian offensive in Ukraine.
In terms of the epidemic, according to data from Johns Hopkins University in the United States, the number of confirmed cases worldwide has exceeded 669 million, and the death toll has exceeded 6.79 million. Around 13.2 billion doses of vaccines have been administered in 184 countries around the world.
The performance of the four major US stock indexes on Wednesday (25th):
Focus stocks
Among the five kings of science and technology, only Amazon is so popular. apple (AAPL-US) down 0.47%; Meta Platforms (META-US) down 1.15%; Alphabet (GOOGL-US) down 2.54%; Amazon (AMZN-US) up 0.89%; Microsoft (MSFT-US) down 0.59%.
Dow JonesConstituent stocks were mixed. Disney (DIS-US) up 2%; McDonald’s (MCD-US) up 1.28%; Walgreens (WBA-US) up 1.06%; Johnson & Johnson (JNJ-US) up 0.71%; Goldman Sachs (GS-US) rose 0.37%; Boeing (BA-US) up 0.33%; Wal-Mart (WMT-US) down 0.48%; Amgen (AMGN-US) down 1.22%; Traveler Group (TRV-US) down 1.3%; 3M (MMM-US) fell 1.8%.
fee halfConstituent stocks received more dividends. ON Semiconductor (ON-US) up 2.47%; Asmol (ASML-US) up 1.72%; Micron (MU-US) up 0.46%; Qualcomm (QCOM-US) up 0.36%; Huida (NVDA-US) up 0.3%; AMD (AMD-US) up 0.28%; Intel (INTC-US) fell 0.74%; Texas Instruments (TXN-US) fell 1.13%.
Taiwan stock ADRs were mixed. TSMC ADR(TSM-US) fell 2.27%; ASE ADR (ASX-US) rose 1.08%; UMC ADR (UMC-US) flat; Chunghwa Telecom ADR (CHT US) fell 0.21%.
Corporate News
Tesla closed up 0.38% on Wednesday and rose 5.7% after hours. Although Tesla’s auto gross profit margin fell to the lowest since the fifth quarter last quarter, the company still announced better-than-expected performance. Against the backdrop of a weak global economy, the prospect of electric vehicle sales has become the focus of investors.
Musk said that the sharp price cuts have indeed created a wave of demand. In the absence of external interference, the demand for electric vehicles in January is about twice that of production. He estimates that sales in 2023 are expected to reach 2 million.
IBM closed down about 0.5 percent on Wednesday and fell nearly 2 percent after hours. The company’s revenue growth was flat last quarter, but overall it reported better-than-expected earnings and issued an upbeat annual sales forecast. At the same time, IBM also joined the ranks of layoffs, announcing a 1.5% layoff globally, affecting an estimated 3,900 employees.
AT&T(T-US) closed up 6.58% and edged up 0.2% after hours. AT&T reported that overall subscriber growth exceeded expectations last quarter and dismissed claims that the telecom industry is in a price war.
Economic data
none
Wall Street Analysis
Mark Hackett, director of investment research at Nationwide, said the long-short tug-of-war is still going on, and the latest trend shows that the earnings report of technology stocks has inspired the bears.
Richard Saperstein, chief investment officer of Treasury Partners, believes that investors should take advantage of the rebound to reduce their exposure to the stock market. The impact of the Fed’s tightening policy on economic growth and corporate profits may be reflected in the stock market in the next few months.
“We have been less than pleased with the quality of earnings reports in recent weeks, with inflation and slowing economic growth still putting future corporate margins at risk,” Saperstein said.
“The ups and downs of the stock market over the past few days show that a tug-of-war is going on, and from the Fed’s perspective, it’s become market sentiment that the lackluster earnings guidance shows that their actions are working,” said Chuck Carlson, chief executive of Horizon Investment Services. earnings are important, but what really gets the market’s attention is Fed rates and inflation.”
The numbers are all updated before the deadline, please refer to the actual quotation
