U.S. stocks traded lower on Tuesday after a tug of trade, ending a volatile month as market participants returned from the holiday, but last week’s strong moves still helped the Dow and S&P 500 regain lost ground for the month , the monthly line is almost flat.
The U.S. stock market had a bad start in May. A series of profit warnings from corporate earnings reports made the threat of inflation lingering. Many industries such as technology and retail stocks were sold off one after another, and the S&P once fell into a bear market.
Of the 11 major S&P sectors, energy was the worst performer on Tuesday, with gains in the session but soft footing late in the session, with Chevron (CVX-US) down 2% and Schlumberger (SLB-US) down 4% %, industrial stocks vulnerable to changes in the economic cycle were also lower, with Honeywell (HON-US) and Boeing down about 1.4% and 0.6%, respectively, and health care stocks were also among the laggards.
Chinese stocks bucked the trend, with Bilibili (BILI-US) up 5.2%, and NIO (NIO-US) and JD-US (JD-US) up nearly 5%.
Tuesday’s move underscored concerns that high inflation would be a drag on economic growth. The euro zone announced on Tuesday that the inflation rate soared 8.1% in May, hitting a record high for seven consecutive months. The war between Russia and Ukraine continued to push up food and energy costs. On the other hand, the US consumer confidence index in May was also higher than the previous few. month fell slightly.
In political and economic news, EU leaders reached a compromise agreement on Tuesday to reduce Russian oil imports by more than two-thirds, but crude oil transported by land pipelines can be exempted. International oil prices rose after hearing the news, and then pared gains.
U.S. President Joe Biden and Federal Reserve Chairman Jerome Powell will meet at the White House later on Tuesday to discuss the state of the U.S. and global economy ahead of this week’s nonfarm payrolls report.
In terms of the epidemic, before the deadline, data from Johns Hopkins University in the United States showed that the number of confirmed cases in the world has reached nearly 530 million, and the number of deaths has exceeded 6.29 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 Tuesday (31st):
Focus stocks
The five kings of technology were mixed. Apple (AAPL-US) fell 0.53%; Meta (FB-US) fell 0.76%; Alphabet (GOOGL-US) rose 1.29%; Amazon (AMZN-US) rose 4.40%; Microsoft (MSFT-US) fell 0.50%.
The Dow Jones components rose less and fell more. Nike (NKE-US) rose 2.47%; Disney (DIS-US) rose 1.02%; JPMorgan Chase (JPM-US) rose 0.73%; Salesforce (CRM-US) fell 2.94%; UnitedHealth (UNH-US) fell 2.04 %; Chevron (CVX-US) fell 2.03%; Coca-Cola (KO-US) fell 2.01%.
Fei and half of the constituent stocks are in a sluggish mood. NXP (NXPI-US) fell 3.15%; Marvell (MRVL-US) fell 2.75%; AMAT-US (AMAT-US) fell 1.83%; ASML (ASML-US) fell 1.22%; NVIDIA (NVDA-US) ) fell 0.74%; Broadcom (AVGO-US) fell 0.54%; Intel (INTC-US) fell 0.29%; Qualcomm (QCOM-US) rose 2.48%; Micron (MU-US) rose 0.71%.
Taiwan stocks ADR collectively closed higher. TSMC ADR (TSM-US) rose 1.63%; ASE ADR (ASX-US) rose 0.99%; UMC ADR (UMC-US) rose 0.46%; Chunghwa Telecom ADR (CHT-US) rose 0.68%.
corporate news
The good news from the unblocking pushed Chinese stocks higher. NIO (NIO-US) closed up 4.95%, JD.com (JD-US) closed up 4.55%, Alibaba (BABA-US) rose 2.9%, Baidu (BIDU-US) rose 0.9%. After a two-month lockdown, Shanghai will finally be lifted on Wednesday (1st).
Unilever (ULVR-US) closed up 6.71% after the company announced the appointment of activist investor Nelson Peltz to its board of directors to discuss the company’s strategy, operations, sustainability and shareholder value.
Salesforce (CRM-US) closed lower on Tuesday, but upbeat earnings and forecasts sent shares up more than 7 percent in after-hours trading. The company announced after the market that its Q1 revenue increased by 24% to $7.41 billion, and (Non-GAAP) EPS was 98 cents, both of which were better than expected. Although the full-year revenue outlook was revised down due to exchange rate fluctuations, it also raised the full Annual profit forecast.
American Eagle Outfitters (AEO-US) closed down 7.49%, Morgan Stanley downgraded the stock to “underweight” citing profit margins and sales risks, and expects the stock to fall further.
Economic data
- US March S&P Case-Shiller home price index increased 20.6% year-on-year, the previous value was 20%
- US March FHFA house price index increased 19% year-on-year, the previous value was 19.4%
- US May Chicago PMI reported 60.3, expected 55.9, the previous value of 56.4
- U.S. consumer confidence index in May reported 106.4, expected 103.9, the previous value of 108.6
Wall Street Analysis
“The market is digesting last week’s strong rally and trying to get its footing, but we’re still far from out of the woods when it comes to inflation, monetary tightening and rate hikes,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group.
Edward Park, chief investment officer of Brooks Macdonald, believes that there is still uncertainty about the rapid rebound in the stock market, and whether this situation can continue, inflation is obviously a factor to be considered.
Gregory Faranello, head of U.S. rates trading and strategy at AmeriVet Securities, also said: “There is still a lot of uncertainty about inflation, it’s one thing to have an energy price shock, but it’s another to see the shock persist for a longer period of time.”
Faranello believes that if inflation remains high ahead of the September rate meeting, the Fed will be ready to do more unless the market is seriously misplaced.
The figures are updated before the deadline, please refer to the actual quotation
