The Federal Reserve (FED) announced that the balance sheet will be reduced soon, and the US stock market opened lower on Wednesday (3rd). Before the deadline, the Dow Jones Industrial Average fell 100 points or 0.3%, the Nasdaq Composite Index fluctuated flat, the S&P 500 Index fell 0.12%, and the Philadelphia Semiconductor Index fell 0.2%.
The much-anticipated FOMC interest rate decision will be announced later. Market analysis pointed out that the Fed is expected to announce the launch of Taper at this meeting and maintain interest rates unchanged.
With Taper imminent, the market has shifted its focus to the Fed’s inflationary language, seeking any signal about the timing of a rate hike. The September interest rate dot plot shows that among the 18 officials, 9 expect to raise interest rates at least once before the end of 2022, and the other 9 believe that they will not raise interest rates before the end of 2022.
According to economic data, the U.S. “small non-agricultural” ADP created 571,000 new jobs in October, which was better than market expectations, and set the best performance since June. The hospitality industry, which was hit hard by the epidemic, created 185,000 new jobs, and the recovery remains strong. Strong.
Before the deadline on Wednesday, the 10-year U.S. Treasury yield fell to 1.538%.
On individual stock news, the ride-sharing platform Lyft (LYFT-US) surged nearly 13% at the opening. Lyft announced on Tuesday that its latest revenue was better than expected, and its net loss was significantly narrowed; on the eve of the earnings report, Uber (UBER-US) Up 5.5%.
The WSB concept stocks popular with Reddit villagers erupted again. Bed Bath & Beyond (BBBY-US) skyrocketed by more than 40% at the opening, RRD-US rose by 37%, GameStop (GME-US) and AMC Entertainment ( AMX-US) rose more than 5% and 7% respectively.
As of 21 o’clock on Wednesday (3rd) Taipei time:
- The Dow Jones Industrial Average fell 105.53 points or -0.29%, temporarily reporting 35947.10 points
- The Nasdaq Composite Index fell 1.56 points, or -0.01%, to 15645.50 points temporarily
- The S&P 500 Index fell 5.50 points, or -0.12%, to 4,65.15 points temporarily
- Fees and a half fell 5.96 points, or -0.19%, to 3,542.28 points temporarily
- TSMC’s ADR fell 0.96% to US$113.01 per share
- The 10-year U.S. Treasury yield fell to 1.538%
- New York Light Crude Oil fell 2.93% to US$81.45 per barrel
- Brent crude oil fell 1.03% to US$82.63 per barrel
- Gold fell 1.03% to $1771.00 per ounce
- The dollar index fell to 94.06
Focus stocks:
CVS Health (CVS-US) rose 2.85% in early trading to $93.74.
CVS Health announced its latest results on Wednesday. Driven by vaccination and virus testing operations, Q3 sales increased by 10% annually to 73.8 billion U.S. dollars. The adjusted EPS was 1.97 U.S. dollars, which was better than expected. CVS Health raised its full-year profit outlook. .
Bed Bath & Beyond (BBBY-US) rose 41.19% in early trading to $23.65.
Bed Bath & Beyond announced on Tuesday that it will establish an in-store and online partnership with the supermarket chain Kroger. It also stated that it will complete a $1 billion stock repurchase plan two years in advance. The above news also forced a wave of short-selling market.
Activision Blizzard (ATVI-US) fell 15.04% in early trading to $65.99.
Activision Blizzard announced on Tuesday that its performance was in line with expectations, but its Q4 sales outlook was not good. The company also announced that the two game masterpieces “Fights 2” and “Diablo 4” will be postponed.
Today’s key economic data:
- ADP’s new jobs in the United States in October reported 571,000, which is expected to be 400,000. The previous value was revised down from 568,000 to 523,000
- 21:45 Taipei time announced the US October Markit service industry PMI, expected 58.2, previous value 58.2
- 21:45 Taipei time announced the United States October Markit comprehensive PMI, the previous value was 57.3
- 22:00 Taipei time announced the US ISM non-manufacturing PMI, expected 61.8, previous value 61.9
- 22:00 Taipei time announced the final value of the monthly growth rate of US durable goods orders in September, the previous value-0.4%
- 22:00 Taipei time announced the monthly growth rate of US factory orders in September, expected-0.1%, previous value 1.2%
- 22:30 Taipei time announced the increase and decrease of EIA crude oil inventories last week, the previous value was 4.268 million barrels
Wall Street analysis:
Jeanette Garretty, chief economist at Robertson Stephens Wealth Management, said that the biggest point is whether the Fed sends any signals about when to raise interest rates. She thinks Fed officials will try to avoid this.
HSBC Global Private Banking Chief Investment Officer Willem Sels said that the Fed is trying to separate the two things of Taper and interest rate hikes, and expressed to the market that “starting to reduce debt purchases does not mean that interest rates will rise soon.”
Sels believes that given that the Fed has no intention to raise interest rates, as long as corporate profits continue to perform well, and the Fed releases a signal to raise interest rates slowly, although the market may be volatile, the stock market will continue to rise.
