Concerns about the slowdown in the growth of large technology stocks dragged down major US stock indexes to open lower on Friday (30th). Before the deadline, the Dow Jones Industrial Average fell 25 points or 0.07%, the Nasdaq Composite fell 0.9%, the S&P 500 fell 0.5%, and Feiban fell 0.2%. Amazon (AMZN-US) Due to Thursday’s after-hours announcement that the latest sales were not as good as expected, and warning of a slowdown in growth in the second half of the year, the opening fell more than 7%.
In recent weeks, potential signs of a slowdown in economic growth have emerged, coupled with the continued global supply chain crisis, which has slowed the rise of US stocks.
Before the deadline, the yield on the 10-year U.S. Treasury fell to 1.247%.
According to economic data, the core personal consumer expenditure price index (Core PCE) in the United States in June increased by 3.5% annually, higher than the previous value and hitting a 30-year high, indicating that inflation is still rising, but slightly lower than market expectations. At the same time , Personal expenditure and personal income continue to grow.
Financial report news side, Chevron (CVX-US) And Exxon Mobil (XOM-US) Both companies announced their latest financial reports on Friday. Both companies have achieved profits for the second consecutive quarter. Chevron also announced that it will resume its treasury stock plan from Q3. The two companies opened up 0.4% and fell 0.5% respectively.
Caterpillar (Development Heavy Industries)CAT-US) Although the announcement of the financial report performed well, it also warned that higher commodity costs may weaken the profitability of Q3, and the opening fell by more than 1%.
As of 21 o’clock on Friday (30th) Taipei time:
- The Dow Jones Industrial Average fell 25.25 points or -0.07%, temporarily at 35059.28 points
- The Nasdaq Composite Index fell by 131.18 points or-0.89% to 14647.08 points temporarily
- The S&P 500 Index fell 23.19 points, or -0.52%, to 4,395.96 points temporarily
- Fees and a half fell by 6.74 points or -0.20% to 3,326.51 points temporarily
- TSMC ADR fell 0.40% to 115.69 per share Dollar
- The 10-year U.S. Treasury yield fell by 1.247%
- New York light crude oil rose 0.14% to 73.72 per barrel Dollar
- Brent crude oil fell 0.32% to 75.81 per barrel Dollar
- Gold fell 0.40% to 1828.50 per ounce Dollar
- DollarThe index rose 0.13% to 91.99
Procter & Gamble announced that its fiscal year 2021 Q4 financial report was better than expected, but it also warned that rising commodity costs and freight rates may affect future earnings. In addition, the company also announced that the current chief operating officer Jon Moeller will replace David Taylor in November as the new chief executive officer of P&G, who will serve as chairman of the board of directors.
Benefited from improved cost structure and better market conditions, Exxon Mobil announced that its Q2 revenue will double to 67.7 billion in 2021Dollar， Net profit near 4.7 billionDollarOr 1.10 per share Dollar, Write down the highest level since the end of 2019.
Caterpillar announced that its Q2 revenue and profitability for 2021 are expected to be excellent. Although terminal demand has recovered since the epidemic, management warned that considering higher materials and R&D costs, the growth of Q3 operating profit ratio may slow down compared with Q2.
Today’s key economic data:
- The annual growth rate of the PCE index in the United States in June reported 4%, which is expected to be 4.1%. The previous value has been revised up from 3.9% to 4%
- The monthly growth rate of the PCE index in the US in June reported 0.5%, which is expected to be 0.7%, and the previous value is 0.4%
- The annual growth rate of the US core PCE index in June reported 3.5%, which is expected to be 3.7%, and the previous value is 3.4%
- The monthly growth rate of the US core PCE index in June reported 0.4%, which is expected to be 0.7%, and the previous value is 0.5%
- At 21:45, Taipei time, the Chicago PMI for July will be announced. The expected value is 63.7 and the previous value is 66.1.
- At 22:00 Taipei time, the final value of consumer confidence in the US in July will be announced, which is expected to be 80.8 and the previous value is 80.8
Wall Street analysis:
Sebastian Mackay, Invesco’s multi-asset fund manager, said that there are too many factors affecting the market. We have entered a more turbulent period, but considering that the economy continues to grow, the stock market will continue to rise.
Meghan Horneman, head of portfolio strategy at Verdence Capital Advisors, believes that the GDP data released yesterday is not bad, and the economic performance is between not so good and not too hot, which can push the Fed to the negotiating table.
Many economists predict that the rate of economic expansion will slow in the second half of the year, but for corporate profits, headwinds in the second half of the year may be more obvious, and inflation and commensurate issues will continue to have an impact.