Fourth-quarter US gross domestic product (GDP) data fueled investor hopes for a soft landing from the economy, driving tech stocks higher.Tesla rose 11% after the publication of its financial report, stimulating the four main US stock indexes on Thursday (26th) Closed higher, the S&P 500 index stood at its highest point since early December last year, the US dollar and US bond yields rose, oil prices climbed, and gold prices closed in the black.
The US Commerce Department announced on Thursday that the quarterly GDP growth rate for the fourth quarter was 2.9%. into a mild recession. The market is now turning its focus to the US Federal Reserve (Fed) decision-making meeting next week, which is expected to raise interest rates by 1 yard (25 basis points).
US companies’ fourth quarter financial reports are in full swing Tesla and IBM’s financial reports are better than Wall Street’s expectations, but the stock prices are different. More than a quarter of S&P 500 companies have reported earnings, with 69 percent beating market expectations, according to Refinitiv data. According to analysts’ latest forecasts, S&P constituents’ fourth-quarter profits rose 2.7 percent, Although the annual decline was higher than the 1.6 percent forecast on New Year’s Day, it was an improvement from Wednesday’s more than 3 percent drop .
In terms of political and economic news, US Republican leaders are considering extending the debt ceiling to September 30 to gain more time to break the deadlock with the Democrats and delay the risk of a debt default.
The United States announced new sanctions on Thursday to curb Russia’s attack on Ukraine’s military capabilities, but a Chinese company saw its inclusion. The US Treasury Department alleges that a Chinese company called Spacety China and its subsidiary in Luxembourg supplied satellite images to pro-Russian Wagnerian masses.
China is reportedly considering export controls on the technology used to make solar chips to protect Chinese companies’ leadership in solar technology. China produces 97% of global solar wafers.
The new global epidemic of coronavirus 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 had increased to 669.7 million, and that the number of deaths has exceeded 6.819 million. More than 13.26 billion doses of vaccines have been administered in 184 countries worldwide.
On Thursday (26th), the performance of the four main US stock indexes:
Focus stocks
Five kings of science and technology arose in general. Apple (AAPL-US) rose 1.48%; Meta (META-US) rose 4.10%; Alphabet (GOOGL-US) rose 2.42%; Amazon (AMZN-US) rose 2.10%; Microsoft (MSFT-US) rose 3.07%.
The 30 Dow Jones stocks were mixed. Salesforce (CRM-US) rose 5.71%, Chevron (CVX-US) rose 4.86%; Goldman Sachs (GS-US) rose 1.53%; IBM (IBM-US) fell 4.48%, Merck (MRK-US) fell 1.58% .
Feiban’s constituent stocks rose more and fell less. Marvell (MRVL-US) rose 3.86%, NXP (NXPI-US) rose 3.40%, Huida (NVDA-US) rose 2.48%, Micron (MU-US) rose 2.05%; Wolfspeed (WOLF-US) fell sharply 5.94% .
ADRs rose mainly from Taiwanese stocks. TSMC ADR (TSM-US) rose 1.13%; ASE ADR (ASX-US) rose 1.74%; UMC ADR (UMC-US) rose 0.64%; Chunghwa Telecom ADR (CHT-US) fell slightly by 0.08%.
Corporate News
Intel (INTC-US) forecast a loss for this quarter after hours Thursday, and its stock price fell more than 9% after hours. The company’s fourth-quarter revenue of $14 billion, excluding certain items, earned 10 cents per share, which fell short of the market’s forecast of $14.5 billion and 19 cents. First-quarter revenue (this quarter) is also estimated to be between 10.5 billion to $11.5 billion, excluding certain items, the loss per share was 15 cents, not as good as Wall Street’s forecast of $14 billion and profit per share of 25 cents.
IBM (IBM-US) closed up 4.5% to US$134.45 a share on Thursday. The company announced after the closing bell on Wednesday that its revenue in the last quarter was better than expected, but it fell short of its full-year cash target. It also announced global layoffs of 1.5%, which are estimated to affecting 3,900 people. .
Tesla (TSLA-US) closed up 11% on Thursday to $160.27 per share The financial report released after the market on Wednesday showed that fourth quarter profit and revenue were better than market expectations.CEO Musk issued a remarkable report of hopeful. forward, he believes there is potential to produce 2 million vehicles this year without major problems or disruptions to the supply chain, and he is optimistic about strong demand this year.
Chevron (CVX-US) announced that it will increase the budget of the treasury stock plan three times, and the stock price closed on Thursday rose 4.88% to $187.79 per share.
Digital media company BuzzFeed (BZFD-US) plans to use OpenAI chatbot ChatGPT to support some content production. On Thursday, its stock price increased 120% to $2.09 per share, the biggest increase since the company went public , with a market value of nearly $300 million.
Bed Bath & Bed (BBBY-US) warned for the second time that it could go bankrupt. The filing showed that the company received a notice of default issued by JPMorgan Chase. It closed down 22.2% to $2.52 per share, it fell more than 2 %.
Economic data
- The quarterly annual growth rate of US Q4 GDP was 2.90%, which was lower than the market forecast of 2.6%, and Q3 was 3.2%.
- The number of people who received unemployment benefits in the United States last week was 186,000, a decrease of 6,000 from the previous week, which is below the market estimate of 205,000.
- The number of Americans who continued to receive unemployment benefits last week was 197,500, a decrease of 9,250 from the previous week.
- US durable goods orders rose 5.6 percent in December, beating market forecasts for a 2.5 percent increase, following a 1.7 percent contraction in November.
- New orders for non-defense durable goods in the US rose 6.3% in December after contracting 2.3% in November.
Wall Street Analysis
Data on Thursday showed that US gross domestic product beat market expectations in the fourth quarter, and the labor market remained tight despite some signs of slackening demand. This is like a double-edged sword for investors. On the one hand, it shows the prospect of a soft landing for the economy, but it also means that the Fed will keep interest rates at a level that limits economic growth for a longer period. . of time.
David Carter, executive director of Morgan Private Bank, said: “For optimists, the economy is slowing down enough to give the Fed pause, but pessimists believe that the scale of economic growth means the Fed is still unable to let go grip. Investment strategies In fact, economic realities may weigh on the market soon, and the biggest variable is that we don’t know what will happen in the second half of the year.”
Chris Zaccarelli, an analyst at Independent Advisor Alliance, said the US economy has shown resilience in the face of interest rate hikes. The stock market’s surge this year has been impressive, but the Fed may soon dash the market’s hopes. Energetic volatility. be in the eye of the typhoon and not out of the woods yet.”
All numbers are updated before the deadline, please refer to the actual quote
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