The surge in oil prices and natural gas on Monday (18th) highlighted the risk of inflation. The 10-year U.S. bond yield once reached 2.884%. Financial stocks performed strongly, but the gains of large technology stocks were suppressed. The latest financial report of Bank of America was better than expected. Twitter Up more than 7%, the S&P, Nasdaq and Dow Jones closed slightly in thin trading, with Feihan up more than 1.88%.
In terms of political and economic news, this week’s earnings season will remain the focus of Wall Street’s attention, with companies such as United Airlines, American Express, Netflix and Tesla all set to report their latest earnings, while banks such as Morgan Stanley, JPMorgan and Goldman Sachs reported mixed results last week. The earnings report also warned of near-term uncertainty caused by inflation and the Ukraine-Russia crisis.
About 7% of S&P stocks have reported first-quarter earnings so far, with 77% of companies reporting better-than-expected earnings per share (EPS), according to FactSet.
Goldman Sachs’ latest research report pointed out that the possibility of a recession in the U.S. economy in the next two years is 35%, and it may be difficult for the Federal Reserve to achieve a so-called “soft landing”. Historically, the gap between job openings and jobseekers in the U.S. has narrowed sharply, only during recessions, making it difficult for the Fed to tighten monetary policy to curb inflation without causing a recession.
The Ukrainian-Russian war continues, and the Russian army has attacked the Slobozhansky and Donetsk theaters in Udon. Russian President Vladimir Putin said that the economic blitzkrieg launched by the West against Russia has failed, and Russia has suffered unprecedented pressure. Ukrainian President Volodymyr Zelensky will not give up eastern territories in order to end the war with Russia, and he had previously issued an ultimatum for negotiations to cancel the fight with the last Ukrainian troops in the besieged city of Mariupol. Russian peace talks.
The World Bank cut its 2022 global growth forecast to 3.2 percent from 4.1 percent, citing the Ukraine war. Ukrainian President Volodymyr Zelensky spoke with the International Monetary Fund (IMF) Georgieva on Monday to discuss Ukraine’s financial stability and post-war reconstruction.
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 504 million, and the number of deaths has exceeded 6.19 million. More than 11.5 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Monday (18th):
Focus stocks
Only Apple is the weakest of the five kings of technology. Apple (AAPL-US) fell 0.13%; Meta (formerly Facebook) (FB-US) rose 0.28%; Alphabet (GOOGL-US) rose 0.75%; Amazon (AMZN-US) rose 0.71%; Microsoft (MSFT-US) ) rose 0.25%.
The Dow Jones components were mixed. Honeywell (HON-US) fell 1.6%; Disney (DIS-US) fell 2.07%; Home Depot (HD-US) fell 1.42%; Goldman Sachs (GS-US) rose 2.56%; JPMorgan Chase (JPM-US) rose 1.86% ;
Fei and half of the constituent stocks rose almost all. NVIDIA (NVDA-US) was up 2.47%; Qualcomm (QCOM-US) was up 1.76%; AMD (AMD-US) was up 0.89%; Intel (INTC-US) was up 2.12%; Applied Materials (AMAT-US) was up 1.33% ; Micron (MU-US) rose 1.45%; Texas Instruments (TXN-US) rose 1.67%.
Taiwan stock ADR mixed up and down. TSMC ADR (TSM-US) was up 0.42%; ASE ADR (ASX-US) was up 1.34%; UMC ADR (UMC-US) was down 1.11%; Chunghwa Telecom ADR (CHT-US) was down 0.38%.
Corporate News
Twitter (TWTR-US) rose 7.48% to $48.45 a share. Market rumors that venture capital firm Apollo Global may provide financing for Musk or other bidders to buy Twitter. Earlier, Twitter’s board adopted a “Poison Pill” plan, a shareholder rights plan with a limited period, to prevent electric car maker Tesla (TSLA-US) CEO Elon Musk from buying the company.
Tesla (TSLA-US) rose 1.96% to $1,004.29 a share. After being included in the “white list” of key enterprises for resumption of work in Shanghai, Tesla’s “Shanghai Gigafactory” was rumored to resume work on Monday, but Tesla’s internal staff responded that it is still in preparation. German media reported on Monday that Tesla’s “Berlin Gigafactory” is currently mass producing 350 Model Y units per week, with the goal of increasing production to 1,000 units per week by the end of April, with an annual output of 30,000 vehicles this year.
China’s online ride-hailing leader “Didi Chuxing” announced its fourth-quarter 2021 financial results last weekend. Last quarter’s revenue fell by nearly 13% year-on-year, and it plans to hold an extraordinary shareholders meeting on May 23 to discuss the company’s American depositary shares. Delisting from the New York Stock Exchange for voting. Didi ADR (DIDI-US) plunged 18.29% to $2.01 per share.
Bank of America (BAC-US) rose 3.41% to $38.85 per share. Bank of America on Monday reported first-quarter net profit of $7.07 billion, or 80 cents a share, beating Wall Street expectations.
Economic data
- US April NAHB housing market index reported 77, expected 77, the previous value of 79
Wall Street Analysis
Sam Stovall, chief investment strategist at CFRA, said: “The biggest concern on Monday was the continuation of the 10-year U.S. bond sell-off. There is no new progress in Ukraine and Russia, and there is nothing new in inflation. The Fed is expected to rise at the next meeting. 50 basis points. The real question is, what is the bond market doing?”
Zachary Hill, head of portfolio management at Horizon Investments, said volatility in the bond market was simply too high to keep investors who would have taken advantage of the recent rise in long-term bond yields on the sidelines. Growth stocks with the highest valuations in the stock market will remain under pressure. “
Art Hogan, chief market strategist at National Securities, said: “Volumes were light this Easter Monday, with many European markets closed and many families on vacation. In this environment, market volatility is relatively more exaggerated.”
The figures are updated before the deadline, please refer to the actual quotation.
