US stocks fell from yesterday’s high on Friday (30th), and the four major indexes opened lower. At the time of writing, the Dow Jones Industrial Average fell more than 150 points or 0.5%, the Nasdaq Composite fell 0.4%, the S&P 500 fell 0.5%, and fees fell nearly 2%. Twitter fell nearly 14% at the opening.
China’s earlier announcement of lower-than-expected manufacturing data in April, coupled with the euro zone economy falling into recession for two consecutive quarters, global stock markets were generally weak on Friday. So far this week, the S&P 500 has risen 0.75%, the Dow Jones has risen less than 0.1%, and the Nasdaq has risen 0.47%.
On the news of individual US stocks, Amazon (AMZN-US) rose nearly 2% before the deadline. Benefited from the online shopping boom of the epidemic, Amazon announced better-than-expected financial reports and financial forecasts. On the other hand, Twitter (TWTR-US) plunged nearly 14% at the opening due to the slowdown in user growth and the failure of its financial forecast to meet expectations.
The two major energy giants Exxon Mobil (XOM-US) and Chevron (CVX-US) both fell after their earnings reports.
In economic data, following the 1% decline in February, the growth of personal consumption expenditure in the United States rebounded 4.2% in March, and personal income also surged by 21.1%, which was better than the decline of 7% in February. The growth rate reached a new high, which was mainly attributed to the United States. Additional relief funds issued by the government.
The PCE price index, which measures inflation, increased by 2.3% annually in March, and the core PCE price index increased by 1.8% annually, both in line with market expectations.
Fed Chairman Jerome Powell said recently that prices may rise in the next few months, but only one-time rises, which are unlikely to cause sustained inflation.
After the release of inflation data, the 10-year U.S. Treasury yield fell to 1.637% before the deadline.
As of 21 o’clock on Friday (30th) Taipei time:
- The Dow Jones Industrial Average fell 152.11 points, or -0.45%, temporarily reporting 33908.25 points
- The Nasdaq Composite Index fell 62.64 points or -0.44%, temporarily reporting 14019.91 points
- The S&P 500 Index fell 19.31 points or -0.46%, temporarily at 4192.16 points
- Fees and a half fell by 63.11 points or -1.97%, temporarily reported at 3139.39 points
- TSMC’s ADR fell 1.57% to US$117.24 per share
- The 10-year U.S. Treasury yield fell to 1.633%
- New York light crude oil fell 2.18% to $63.59 per barrel
- Brent crude oil fell 1.98% to US$67.20 per barrel
- Gold rose 0.14% to $1,770.80 per ounce
- The U.S. dollar index rose 0.26% to 90.830 points
Twitter (TWTR-US) fell 13.81% in early trading to $56.10.
Twitter announced after the market on Thursday that the adjusted EPS for the first quarter was 16 cents, which was better than estimated. Revenue of US$1.04 billion was also slightly higher than expected, but user growth slowed down, and the median revenue estimate for the second quarter was lower than The average analyst expects.
Sky News (SWKS-US) fell 7.35% to US$183.32 in early trading.
Skylink announced that its revenue for the second quarter of fiscal year 2021 was US$1.17 billion, and its non-GAAP EPS was reported to be US$2.37, both of which are well expected. However, investors seem to be unsatisfied with the Q3 financial forecast.
Apple (AAPL-US) fell 0.80% to US$132.41 in early trading.
The European Commission on Friday accused Apple of abusing the dominant position of the App Store, distorting competition in the streaming music market, and depriving users of the choice of other cheaper apps, and will file an antitrust lawsuit against the company.
Today’s key economic data:
- The annual growth rate of the US PCE index in March reported 2.3%, expected to be 2.3%, the previous value was lowered from 1.6% to 1.5%
- The annual growth rate of the US core PCE index in March reported 1.8%, which is expected to be 1.8%, and the previous value is 1.4%
- 21:45 Taipei time will announce the Chicago PMI in April, expected 63.0, previous value 66.3
- At 22:00 Taipei time, the US Consumer Confidence Index will be announced in April, which is expected to be 87.5 and the previous value is 86.5
Wall Street analysis:
Brooks Macdonald Investment Chief Edward Park believes that the market is struggling between economic growth and inflation. Once supply chain problems and inflation concerns continue into next year, market growth will be suppressed under the current ultra-loose monetary policy environment.
Edward Smith, head of asset allocation research at Rathbone Investment Management, said that many corporate stock prices are facing pricing pressure, supply chain risks, and additional US stimulus measures, which is why people are now paying attention to inflation.
Smith believes that continued inflation will be the biggest risk facing the stock market this year, which may cause the Fed to gradually raise interest rates at a faster-than-expected rate.