The four major US stock indexes opened high and opened low on the first trading day of this week. Dow Jones fell 250 points. S&P closed for the second consecutive trading day. Investors assessed the soaring energy prices and inflationary pressures, and will open soon in the earnings season. Hold a wait-and-see attitude before running. West Texas crude oil surpassed US$80 per barrel, the US dollar rose, and gold prices weakened. Bitcoin surpassed US$57,000 for the first time since May.
U.S. stocks turned dark and declined at midday. Energy stocks were encouraged to rise by oil prices most of the time. Bond futures fell, and the spot market was closed for Columbus Day.
In terms of political and economic news, investors worry that China’s next wave of supervision will be the financial industry. The Wall Street Journal (WSJ) quoted sources on Monday as reporting that Chinese President Xi Jinping ordered the Central Commission for Discipline Inspection to review at least 25 state-owned banks and other financial institutions. To clarify whether they are too close to large private companies, especially Evergrande, Didi and Ants that have attracted attention in recent months.
In spite of the September non-agricultural employment announcement by the United States last Friday, the market expects that the Federal Reserve (Fed) will not postpone the reduction in debt purchases.
Goldman Sachs revised its annual economic growth forecast for the United States on Monday. It is expected to grow by 5.6% this year (original estimate 5.7%) and 4% next year (original estimate 4.4%). The reason is that the recovery of consumer spending is slower than expected and financial support Gradually expire.
The U.S. stocks earnings season will kick off this week by banking stocks, and on Wednesday by JPMorgan Chase (JPM-US) Leading the way, Bank of America (BAC-US),Morgan Stanley (MS-US), Citigroup (C-US) And Goldman Sachs (GS-US) The financial report will also appear one after another.
The global new crown pneumonia (COVID-19) epidemic continues to have fever. According to the real-time statistics of Johns Hopkins University in the United States, the number of confirmed cases worldwide has exceeded 238 million and the number of deaths has exceeded 4.85 million. A total of more than 44.41 million cases have been diagnosed in the United States, and more than 710,000 people have died. A total of 33.97 million cases have been confirmed in India, and 21.57 million cases have been confirmed in Brazil.
Tuesday (11th) the performance of the four major US stock indexes:
- The Dow Jones Industrial Average fell 250.19 points, or 0.72%, to close at 34,496.06 points.
- The S&P 500 Index fell 30.15 points, or 0.69%, to close at 4,361.19 points.
- The Nasdaq Composite Index fell 93.34 points, or 0.64%, to close at 14,486.20 points.
- The Philadelphia Semiconductor Index fell 25.04 points, or 0.77%, to close at 3,221.23 points.
The five kings of science and technology fell across the board. Apple (AAPL-US) Fell 0.06%; Facebook (FB-US) Fell 1.39%; Alphabet (GOOGL-US) Fell 0.62%; Amazon (AMZN-US) Fell 1.29%; Microsoft (MSFT-US) Fell 0.21%.
Dow Jones constituent stocks fell more and rose less. Visa(V-US) Fell 2.24%; JPMorgan Chase (JPM-US) Fell 2.1%; Verizon (VZ-US) Fell 1.99%; Goldman Sachs (GS-US) Fell 1.93%; Disney (DIS-US)1.82%；Nike(US-US) Fell 1.44%.
Fei’s half constituent stocks fell more than rose. II-VI(IIVI-US) Fell 3.36%; ON Semiconductor (ON-US) Fell 2.54%; Maiwell (MRVL-US) Fell 1.83%; Micron (MU-US) Fell 1.28%. Should material (AMAT-US) Rose 1.01%.
Bitcoin broke through 57,000 U.S. dollars, the first time since May, Coinbase (COIN-US) Jumped more than 3%.
Southwest Airlines (LUV-US) Plummeted 4.17%. The company cancelled nearly 2,000 flights in two days. It is currently expected to return to normal this week, but it does not rule out cutting flights again.
Merck(MRK-US) (Merck & Co., Merck) applied to the U.S. Food and Drug Administration (FDA) for an emergency use authorization (EUA) for the new crown oral drug.
Wall Street Analysis
Looking ahead to the third quarter earnings season of US stocks, Refinitiv IBES data shows that analysts estimate that the net profit of S&P 500 index companies will increase by 29.6% annually, which is far lower than the 96.3% increase in the second quarter.
Experts say that investors’ concern about supply chain issues will have a significant impact on certain companies or industries, and companies’ views on inflation are also attracting attention.
Morgan Stanley’s head of financial management and investment, Lisa Shalett, said that if the U.S. stock market’s earnings season is impacted by corporate downturns, the deterioration of consumer confidence may soon affect stock market investors.
She said: “We think the profit forecasts of companies are fragile. Although the Fed and consumers have accepted that inflation is temporary, consumers do not agree with this. If consumer confidence does not improve quickly, the market may be weak. Factors contributing to the market weakness include disappointing earnings reports, declining consumer spending, and rising savings rates.”
Bernstein analyst Neil Beveridge said that rapid or rapid increases in energy costs have caused economic recessions in the past. If the situation does not change, history may repeat itself, and rising energy prices will reduce consumers’ disposable income.
Goldman Sachs economist Joseph Briggs said: “Take movie watching activities as an example. Many people believe that it will take at least 6 months to return to normal spending patterns. This means that it will take some time for the economy to fully return to normal.”
The figures are updated before the deadline, please follow the actual quotation