Strong retail sales data released on Tuesday (17th) showed firming U.S. consumer spending, China’s regulatory turmoil subsided, Home Depot and other companies reported strong earnings, market risk sentiment was boosted, the U.S. Treasury yield curve flattened, and chip-dominated technology stocks supported , Tesla rose more than 5%, the four major indexes collectively closed in the red, the Dow rose more than 430 points, the Nasdaq and the S&P rose more than 2%, and Feihan soared more than 5%.
In political and economic news, Federal Reserve Chairman Powell said on Tuesday that the Fed will not hesitate to continue raising interest rates until inflation falls. Americans may feel some pain as the Fed takes firm action, but there are many plausible paths to a “soft landing” for the economy. Powell also reiterated that a two-yard rate hike is appropriate if the economy meets expectations.
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, pointed out that the Fed has signaled that it will raise interest rates to a neutral level this year. Hawks general St. Louis Fed President Bullard denied that the Fed’s response to inflation was too slow, and supported a plan to raise interest rates by 2 yards in future meetings, rarely refraining from raising interest rates by 3 yards.
The European Union is considering a phased ban on Russian crude, and U.S. Treasury officials said on Tuesday that the United States will propose to European countries a tariff on Russian oil to replace a direct oil embargo at a G7 financial meeting.
U.S. President Biden will visit South Korea and Japan from May 20 to 24. U.S. Commerce Secretary Gina Raimondo said on Tuesday that during Biden’s visit to Japan, Biden will launch the Indo-Pacific economic framework led by the United States (IPEF).
In addition, Liu He, Vice Premier of the State Council of the People’s Republic of China, expressed his interest in Chinese stocks on Tuesday. He said at the special consultation meeting “Promoting the Sustainable and Healthy Development of the Digital Economy” held by the National Committee of the Chinese People’s Political Consultative Conference that he supports the sustainable and healthy development of the platform economy and the private economy, and supports digital enterprises. Listing at home and abroad, promoting competition through openness and innovation through competition.
The global epidemic of new coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States pointed out that the number of confirmed cases worldwide has exceeded 524 million, and the number of deaths has exceeded 6.28 million. More than 11.7 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Tuesday (17th):
- The Dow Jones Industrial Average rose 431.17 points, or 1.34 percent, to end at 32,654.59.
- The Nasdaq added 321.73 points, or 2.76 percent, to 11,984.52.
- The S&P 500 gained 80.84 points, or 2.02%, to 4,088.85.
- The Philadelphia Semiconductor Index rose 146.4 points, or 5.02 percent, to 3,066.5.
The five kings of technology rebounded on Tuesday. Apple (AAPL-US) was up 2.54%; Meta (formerly Facebook) (FB-US) was up 1.29%; Alphabet (GOOGL-US) was up 1.77%; Amazon (AMZN-US) was up 4.11%; Microsoft (MSFT-US) was up 4.11% ) rose 2.03 percent.
More than half of the Dow Jones components ended higher. Boeing (BA-US) rose 6.45%; American Express (AXP-US) rose 3.46%; JPMorgan Chase (JPM-US) rose 3.31%; Disney (DIS-US) rose 3.29%; Walmart (WMT-US) tumbled 11.38 %.
Half of the constituent stocks are full of firepower. AMD (AMD-US) led the way up 8.73%; NVIDIA (NVDA-US) rose 5.29%; Qualcomm (QCOM-US) rose 4.32%; Intel (INTC-US) rose 3.06%; Applied Materials (AMAT-US) advanced 5.76%; Micron (MU-US) rose 5.69%; Texas Instruments (TXN-US) rose 3.85%.
Taiwan stock ADR closed higher. TSMC ADR (TSM-US) rose 3.22%; ASE ADR (ASX-US) rose 4.77%; UMC ADR (UMC-US) rose 4.46%; Chunghwa Telecom ADR (CHT-US) rose 0.07%.
Twitter (TWTR-US) rose 2.49% and Tesla (TSLA-US) rose 5.14%. Elon Musk, the world’s richest man, said on Tuesday that he would not pursue the acquisition of Twitter unless he could determine that less than 5 percent of Twitter accounts were fake.
United Airlines (UAL-US) rose 7.88% to $46.97 per share. United Airlines raised its forecast on Tuesday, predicting that travel demand will be more robust this summer. It is expected that revenue per seat mile (TRASM) in the second quarter will grow by as much as 25% compared with 2019. This news encouraged airline stocks to rise in sync, with Delta Air Lines ( DAL-US) and American Airlines (AAL-US) rose more than 6%.
U.S. retail giant Walmart (WMT-US) tumbled 11.38% to $131.35 a share. Walmart announced its fiscal first-quarter 2023 financial results on Tuesday. Although revenue performance was better than expected, rising costs and supply chain impacts eroded profits. Profits fell sharply and fell far short of expectations. At the same time, it lowered its full-year profit outlook.
Citigroup (C-US) rose 7.47% to $51.05 per share. Berkshire Hathaway, in charge of “stock god” Buffett, announced the 13F position report for the first quarter. Berkshire longed Citi and cleared Wells Fargo (WFC-US), while Apple was still the number one heavyweight stock.
As China’s regulatory headwinds subsided, iQiyi ADR (IQ-US) surged 7.92%, NIO ADR (NIO-US) surged 14.30%, and Alibaba ADR (BABA-US) surged 6.30%.
Pioneering Heavy Industries (CAT-US) rose 2.89% to $213.09 per share. KPI’s board of directors approved a new treasury stock plan, worth up to $15 billion, to take effect on August 1.
- U.S. retail sales rose 0.9% in April, 0.9% expected, and the previous 1.4%
- U.S. retail sales in April reported an annual growth rate of 8.19%, compared with the previous value of 7.34%
- The monthly growth rate of core retail sales in the United States in April was 0.6%, expected 0.4%, and the previous value was 2.1%
- The monthly growth rate of U.S. industrial production in April was 1.1%, expected to be 0.4%, and the previous value of 0.9%
Wall Street Analysis
Jamie Cox, managing partner of Harris Financial Group, pointed out that the US consumer has a strong desire to spend, break the shackles of the new crown virus and will not look back, such data calls into question any predictions of a US recession in 2022.
Mike Loewengart, managing director of investment strategy at E*Trade, said inflation may be weighing on sentiment and raising concerns about the Fed, but it doesn’t appear to be slowing consumers for now
Randy Frederick, managing director of trading and derivatives at Charles Schwab, said that in a volatile market, there will be intermittent rallies, and stocks may not have bottomed out yet, as high inflation and higher interest rates remain concerns for the market.
Macro strategist Cameron Crise pointed out that if inflation does not subside in the summer, the Fed may be forced to raise interest rates significantly in September or later, which is not priced in the market, so the September FOMC meeting needs to pay attention to the Fed. Standard reaction and market risk. Sure, Ball sounded tough on Tuesday, but it was nothing new and not surprising.
The figures are updated before the deadline, please refer to the actual quotation.