The four major US stock indexes closed on Wednesday (17th). Large retailers such as Target reported strong earnings, but investors focused on the inflation concerns mentioned by corporate executives. Weak oil prices weighed on energy stocks, dollar and U.S. Treasury yields fell, and gold prices rose.
U.S. President Biden reportedly requested Chinese President Xi Jinping to release oil reserves through a video call during the “Visiting Meeting” as part of the discussion on economic cooperation between the two sides. Brent crude oil fell 2.6% to US$80.28 per barrel, the lowest price since October 1.
The White House is considering releasing strategic oil storage (SPR) to ease the high gasoline prices in the United States. Biden sent a letter to Lina Khan, Chairman of the US Federal Trade Commission (FTC) on Wednesday, asking the FTC to investigate whether oil and gas companies were involved in deliberately keeping gasoline prices high. However, oil and gas companies complained and criticized Biden for trying to shift the focus.
Electric vehicle stocks are mostly rising, Tesla rebounded for two consecutive days, Sono Group listed on Wednesday soared by more than 150%, but recently soaring electric vehicle startups Rivian and Lucid plummeted, this is also the first day since Rivian went public. .
The new crown pneumonia (COVID-19) global epidemic continues to spread. Before the deadline, data from Johns Hopkins University in the United States showed that the number of confirmed cases worldwide has exceeded 254 million, and the number of deaths has exceeded 5.12 million. More than 7.56 billion doses of vaccines have been vaccinated in 184 countries/regions around the world.
The performance of the four major US stock indexes on Wednesday (17th):
- The Dow Jones Industrial Average fell 211.17 points, or 0.58%, to close at 35,931.05 points.
- The S&P 500 index fell 12.23 points, or 0.26%, to close at 4,688.67 points.
- The Nasdaq Composite Index fell 52.28 points, or 0.33%, to close at 15,921.57 points.
- The Philadelphia Semiconductor Index fell 27.95 points, or 0.72%, to close at 3,831.44 points.
Almost all 11 stocks in the S&P 500 index closed in black, energy stocks and financial stocks led the decline, and only real estate stocks rose slightly. (Photo: Finviz)
Focus stocks
The five kings of science and technology rose across the board. Apple (AAPL-US) rose 1.65%; Facebook (FB-US) rose 0.64%; Alphabet (GOOGL-US) rose 0.12%; Amazon (AMZN-US) rose 0.23%; Microsoft (MSFT-US) rose 0.07% .
Most of the Dow Jones constituent stocks fell. Visa (V-US) fell 4.7%; Goldman Sachs fell 2.86%; Merck (MRK-US) fell 1.8%; Chevron (CVX-US) fell 0.45%. Home Depot (HD-US) rose 0.6% and Johnson & Johnson (JNJ-US) rose 0.37%.
Fei’s half of the constituent stocks fell more and rose less. Wolfspeed (WOLF-US), formerly known as Cree, plunged 9.23%; Nvidia (NVDA-US) fell 3.12%; Lattice Semiconductor (LSCC-US) fell 2.74%. Amkor (AMKR-US) rose 1.28% and Broadcom (AVGO-US) rose 0.15%.
Only TSMC rose in Taiwan stock ADR. TSMC ADR (TSM-US) rose 0.83%; ASE ADR (ASX-US) fell 0.52%; UMC ADR (UMC-US) fell 0.18%; Chunghwa Telecom ADR (CHT-US) remained flat.
Corporate News
Tesla (TSLA-US) rose 3.26% to $894 per share. Chief Executive Musk sold shares again on Tuesday for US$973 million, but it did not drag the stock price.
Retail investors are enthusiastically pursuing electric vehicle stocks. Sono Group (SEV-US) surged 154.67% to $38.20 per share on the first day of listing. The company’s initial public offering (IPO) on Wednesday was priced at $23.20 per share.
However, Rivian (RVAN-US) closed for the first time since its IPO on Wednesday. It ended up falling 15.08% to US$146.07 per share. Another booming stock, Lucid (LCID-US), fell 5.35% to US$52.55 per share. Experts warn that if a company has no revenue yet has a high market value, it is quite amazing.
Visa (V-US) fell 4.74% to US$205.06 per share. The main reason was that partner Amazon said on Wednesday that due to higher processing costs incurred by payment, consumers will no longer accept Visa credit cards issued in the UK from January 19 next year. Payment.
Target (TGT-US) tumbled 4.76% to US$253.80 per share. The third-quarter financial report released before the market showed that revenue, profit and same-store sales growth were better than expected, and the annual financial forecast was revised up on the grounds that the shopping season started early at the end of the year, but warned that labor and freight costs rose , Profit margins may be under pressure.
The news dragged down department store retail stocks. Kohl’s (KSS-US), which will announce earnings on Thursday, fell 3%. UrbanOutfitters (URBN-US), which will announce earnings next week, fell 4%, and Gap (GAP-US) fell 5%.
Apple rose 1.65% to $153.49 per share. Apple launched a self-service repair program on Wednesday, which will sell some original iPhone and Mac parts and tools to users for easy repairs. In addition, Wedbush analyst Dan Ives released a report saying that the iPhone 13 Pro shipment time has been extended, and it is estimated that the demand for the Christmas sales season will be about 15% higher than the supply.
Fitness equipment maker Peleton (PTON-US) fell 6.78% to US$51.13 per share. The company announced the sale of US$1 billion in stocks on Tuesday, and it did not lower its full-year revenue forecast by US$1 billion until two weeks ago. The stock price has plummeted 45% so far.
Wolfspeed (WOLF-US), formerly known as Cree, plunged 9.13% to US$128.77 per share. This silicon carbide manufacturer has been rising since its earnings report at the end of October, but it plummeted after its debut on Wednesday’s “Annual Analyst Day” . According to the company’s longer-term financial forecast until 2026, the annual revenue growth rate will be 30%, but the free cash flow rate of return will reach 20% by 2026, which is lower than market expectations.
Economic data
- The annualized monthly growth rate of new housing starts in the United States in October reported-0.7%, expected to be 1.3%, the previous value was revised down from-1.6% to-2.7%
- The total annualized number of new housing starts in the United States in October was 1.52 million, which is expected to be 1.573 million. The previous value was revised down from 1.555 million to 1.53 million.
- The US October annualized monthly growth rate of construction permits reported 4%, which is expected to be 2.8%. The previous value was revised down from -7.7% to -7.8%
- The total annualized number of construction permits in the United States in October was 1.65 million, which is expected to be 1.63 million. The previous value was revised down from 1.589 million to 1.586 million
Wall Street Analysis
The United States announced last week that the October Consumer Price Index (CPI) annual growth rate hit a more than 30-year high, which made investors pay special attention to the clues of inflation in the financial reports of retailers. Two Federal Reserve (Fed) officials on Tuesday The speech raises uncertainty.
St. Louis Federal Reserve Bank President James Bullard called on the Fed to be more hawkish in the next meeting, while San Francisco Federal Reserve Bank President Mary Daly called for patience and not to raise interest rates prematurely to stifle inflation. Economic recovery.
Goldman Sachs analyst Jeff Currie said that the market seems to be weighing inflation, economic growth and interest rates. Although retailers have reported excellent earnings so far this week, the content shows that profit pressures are increasing due to supply chain bottlenecks and labor shortages.
Joe Saluzzi, co-head of Themis Trading’s trading department, said: “The Fed will try to maintain current interest rates as much as possible, but if inflation continues to rise, the question will become how much and how fast interest rates should rise.”
The figures are updated before the deadline, please follow the actual quotation
