Wall Street expects August US inflation data to peak and fall, the Ukrainian army’s counteroffensive has reported good news, and market risk sentiment has improved. Pre-orders were hot, earnings were Apple impressively, all four major indices closed in the red, the Dow Jones closed almost 230 points, and the Nasdaq and S&P rose more than 1%.
The latest survey released by the Federal Reserve Bank of New York on Monday showed that consumer expectations for future inflation fell further in August, with consumer expectations for three-year inflation falling for the fourth consecutive month.
Meanwhile, investors await the US Consumer Price Index (CPI) report for August due on Tuesday. Wall Street expects CPI to rise 8.1% y/y in August, after rising 8.5% in July. Core CPI, which strips out the impact of energy, is expected to rise to 6.1% in August from 5.9% in July.
Some economists predict that if there is particularly weak CPI data, the Fed may let go and raise interest rates by just 2 yds, but some economists are certain that the Fed will raise interest rates by 3 yds, because a labor market the United States still is. strong
In terms of politics and the economy, US President Biden is about to sign an executive order to expand the US bio-manufacturing industry and reduce its dependence on China, showing that the technology war between the US and China has extended to the biotechnology industry.
Chinese President Xi Jinping is preparing for his first foreign trip since the Covid-19 pandemic, the Beijing government announced that Xi will visit Kazakhstan and Uzbekistan from September 14 to 16, and attend the Shanghai Cooperation Organization members at the Samarkand Council of Heads of State. Russian media previously reported that Xi Jinping and Russian President Vladimir Putin will meet on the sidelines of the Shanghai Cooperation Organization summit.
The seven-month Russian-Ukrainian war may be coming to a turning point, with the Ukrainian army recovering 500 square kilometers of lost ground in southern Ukraine in the past two weeks. The outside world is worried that Putin could take the opportunity to meet with Xi Jinping to demand more help from China.
The global epidemic of new coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States indicated that the number of confirmed cases worldwide exceeded 608 million , and that the number of deaths has exceeded 6.51 million. More than 12.6 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major US stock indexes on Monday (12th):
Focus stocks
The five kings of science and technology are only black. Apple (AAPL-US) was up 3.85%; Meta (META-US) down 0.11%; Alphabet (GOOGL-US) was up 0.19%; Amazon (AMZN-US) up 2.39%; Microsoft (MSFT-US) was up 0.83%.
The Dow Jones components were all higher, led by Apple. American Express (AXP-US) rose 2.53%; Salesforce (CRM-US) rose 1.87%; Chevron (CVX-US) rose 1.58%; Pioneer Heavy Industries (CAT-US) rose 1.54%; Amgen (AMGN-US) rose 1.54% ) fell 4.07%.
Fei and half the electorate were mixed. Intel (INTC-US) rose 0.32%; Micron (MU-US) rose 0.87%; NVIDIA (NVDA-US) rose 0.82%; AMD (AMD-US) fell 0.95%; Applied Materials (AMAT-US) fell 0.22%; Qualcomm (QCOM-US) rose 0.72%; Texas Instruments (TXN-US) fell 0.094%.
Taiwan stock ADR is only weak. TSMC ADR (TSM-US) rose 0.76%; ASE ADR (ASX-US) fell 1.39%; UMC ADR (UMC-US) rose 0.31%; Chunghwa Telecom ADR (CHT-US) rose 0.69%.
Corporate News
Apple ( AAPL-US ) rose 3.85% to $163.43 a share, its best one-day performance since May. Tianfeng International Securities analyst Ming-Chi Kuo released a new Apple pre-order survey on Monday, showing that demand for the iPhone 14 Pro Max surpassed last year’s iPhone 13 Pro Max, and he believes that Apple will differentiate further its Pro and its non-Pro models through the model iPhone 15 and iPhone 15 Pro in 2023., while increasing the average selling price of the iPhone as a whole.
Software giant Oracle (ORCL-US) closed up 1.54% at $77.08 a share, after rising 1.5% in after-hours trading.
Oracle announced earnings after hours for the first quarter of fiscal 2023 (ending August 31, 2022), with adjusted net earnings per share of $1.03, below market expectations, but revenue of $11.45 billion, better than expected, mainly due to recent The electronic medical records company Cerner brought in a financial contribution of $1.4 billion, with revenue in the quarter up 18% from a year earlier.
Goldman Sachs (GS-US) rose 0.67% to $342.58 a share. According to foreign media reports, Goldman Sachs is embarking on the biggest layoff since the new crown epidemic, and will lay off hundreds of people starting this month. The US financial industry is also feeling the cold of the current economic recession to down more than 40 %.
Twitter (TWTR-US) slipped 1.85% to $41.41 a share. A team of Twitter lawyers said that Musk’s attempt to cancel the Twitter contract was invalid and wrong, and that Twitter was not breaking the contract by paying the whistleblower. The market also reported that the majority of shareholders at the Twitter shareholder meeting will agree to Musk buying Twitter at a price of $54.20 per share.
Wall Street Analysis
Citi strategist Ebrahim Rahbari believes the rebound in US stocks following the release of pressure and the recent broad correction in the dollar will continue into this week as the market believes a hawkish rate hike the Fed has peaked in the short term and that market positions are relative. defensive.
Analysts at Wells Fargo Bank have opined that lower raw material futures prices in recent months and easing of supply chain bottlenecks indicate that inflation will cool in the next few months, but the rate of growth in labor costs remains strong , which indicates that inflation will continue. fall back to the Fed Reaching the target level is not easy.
Figures are updated before the deadline, please refer to the actual quote.
