After the two major technology giants, Apple and Amazon, announced disappointing earnings reports, US stocks generally opened lower on Friday (29th). Before the deadline, the Dow Jones Industrial Average rose 25 points or 0.07%, the Nasdaq Composite Index fell 0.5%, the S&P 500 Index fell 0.3%, and the Philadelphia Semiconductor Index was almost flat. Amazon and Apple both fell more than 3%.
After releasing worse-than-expected earnings after Thursday’s trading hours and warning that supply chain disruption might bring more challenges, Apple (AAPL-US) fell 3.6% at the opening, which also dragged down supplier stock prices. Taiwan Semiconductor Manufacturing Company (TSM-US) fell 1.8 %, Qualcomm (QCOM-US) and Broadcom (AVGO-US) also fell 0.5%.
Amazon (AMZN-US) announced that its financial results for the previous quarter were not as good as expected, and it also faced labor and supply chain challenges. The opening fell 4.8%, and the decline subsequently converged to 3.5%.
Exxon Mobil (XOM-US) and Chevron (CVX-US) both achieved good results due to soaring commodity prices, with openings up 10.9% and 1.4% respectively.
At the same time, investors continue to digest the performance of economic data. Following yesterday’s announcement of a sharp slowdown in economic growth in Q3, it is announced today that personal consumption expenditure increased by 0.6% per month. Although it fell slightly due to the Delta virus, it was still in line with market expectations. Personal income fell by 1% per month, unexpectedly worse than expected.
US President Biden announced on Thursday that he had reached an agreement with Senate Democrats on the framework of the $1.75 trillion Social Expenditure and Climate Change Act, but it still triggered a backlash from some progressive Democrats.
As of 21 o’clock on Friday (29th) Taipei time:
- The Dow Jones Industrial Average rose 25.62 points, or 0.07%, to 35756.10 points temporarily
- The Nasdaq Composite Index fell by 82.31 points, or -0.53%, to 15367.70 points temporarily
- The S&P 500 Index fell 12.63 points or -0.27%, temporarily at 4583.79 points
- Fees and a half fell by 1.67 points or -0.05%, temporarily reported at 3437.01 points
- TSMC ADR fell 1.86% to US$113.85 per share
- The 10-year U.S. Treasury yield rose to 1.601%
- New York Light Crude Oil fell 0.75% to US$82.19 per barrel
- Brent crude oil fell 0.28% to US$84.08 per barrel
- Gold rose 1.28% to $1,779.60 per ounce
- The dollar index rose to 93.74
Focus stocks:
Chevron (CVX-US) rose 1.39% to 114.69 US dollars in early trading.
Driven by factors such as soaring commodity prices and recovery in fuel demand, Chevron announced that its third-quarter revenue increased by more than 80% annually, its profit hit a new high since the first quarter of 2013, and its free cash flow also set a historical record.
Exxon Mobil (XOM-US) rose 0.87% in early trading to $64.88.
Exxon Mobil announced that its third quarter profit set its best performance in four years, while revenue was slightly lower than expected. The company is expected to implement a 1-2 year treasury stock plan from next year and distribute up to 10 billion dividends to shareholders Dollar.
United States Steel (X-US) rose 11.92% in early trading to $26.20.
U.S. Steel announced that its latest financial report was better than market expectations, and at the same time announced the implementation of a US$300 million treasury stock plan and raised its allotment dividend from 1 cent to 5 cents per share.
Today’s key economic data:
- US September personal income monthly rate report-1.0%, expected-0.3%, previous value 0.2%
- The monthly rate of personal expenditure in the United States reported at 0.6% in September, which is expected to be 0.6%. The previous value was revised up from 0.8% to 1.0%
- The Chicago PMI in October, the US is expected to be 63.1, and the previous value is 64.7
- At 22:00, Taipei time, the final value of consumer confidence in the U.S. University of Science and Technology announced in October, which is expected to be 71.4 and the previous value is 71.4
Wall Street analysis:
Vishnu Varathan, head of economics and strategy at Mizuho Bank in Singapore, believes that given the global central bank’s instructions to gradually tighten monetary policy, even before quantitative tightening has begun, liquidity will still support the market in the short term.
According to Paul Schatz, President of Heritage Capital, the third quarter is the trough of the US GDP growth rate. The fourth quarter and the first quarter of next year will achieve strong economic growth, and the inflation rate will peak in the next six months, and the supply chain will shrink the fastest Relief will be achieved at the beginning of the second quarter of next year.
