The latest data released on Friday (27th) helped the market’s expectations for inflation to have peaked to rise, and risk sentiment turned better. Major U.S. stock indexes rose in early trade on Friday,Dow Jones Industrial Averagerose 0.2%,S&P 500 Indexup 0.62%,NasdaqThe index rose 1.07%,half feerose 2.1%.
Dow Jones、S&P 500 IndexandNasdaqIndices are on track to end the week higher. This week ends Thursday,Dow Jonesrose 4.4%, the S&P 500 rose 4%,NasdaqIt rose 3.4%, with most of the gains coming on Thursday. Nonetheless, compared to the previous record high,NasdaqThe index is still down 27.6%, while the S&P 500 andDow JonesThey fell 15.8% and 11.7% respectively.
The Fed’s preferred inflation gauge, the core personal consumption expenditures (PCE) price index, rose 4.9% in April from a year earlier, in line with economists’ median forecast of 4.9% inflation.
This comes after data released on Thursday showed consumers switching to cheaper items, with discount retailer Dollar Tree Stores (Dollar Tree Stores).DLTR-US) has emerged as one of the biggest winners of the trend, and investors are expected to keep their eyes on retailer earnings on Friday.
Weak housing data on Thursday and a cut in profit guidance by retailers suggested some of the most frothy areas of the economy are cooling, although better-than-expected jobless claims this week also boosted shares.
This weekend and next Monday are the Memorial Day holiday in the U.S. and peak travel season, but markets are betting that record U.S. gasoline prices will hit travel demand.
As of Friday 21:00 Taipei time:
- Dow JonesUp 25.66 points 0.17%, temporarily reported 32691.85 points
- NasdaqUp 125.08 points or 1.07%, temporarily reported 11865.73 points
- S&P 500 rose 25.23 points, or 0.62%, to 4083.07
- half feeUp 63.27 points or 2.11%, temporarily reported 3057.88 points
- TSMC ADR up 2.0% to $92.85 per share
- 10-year U.S. Treasury yielddown 1 basis point to 2.73%
- New York Light crude fell 0.26% to $113.79 a barrel
- Brent CrudeUp 0.08% to $117.49 a barrel
- goldUp 0.5% to $1,862.80 an ounce
- US dollar indexDown 0.08% to 101.775
Stocks in focus:
Dell (DELL-US) rose 17.96% to $51.82
PC giant Dell announced its latest financial report on Thursday. Driven by the steady growth of commercial PC sales and strong demand for network equipment, Dell’s Q1 revenue hit a record high in the same period, and its Q2 financial forecast was also better than market expectations.
But Dell’s co-chief operating officer Jeff Clarke warned that chip shortages and China’s lockdown have created a backlog of orders that will last at least this quarter.
Pinduoduo (PDD-US) rose 6.48% to $44.65
China’s Pinduoduo reported better-than-expected revenue on Friday as more people shopped online amid a resurgence of coronavirus cases in parts of the country.
As China grapples with a severe outbreak of the coronavirus, an uncompromising “zero out” policy has put hundreds of millions of people under strict lockdowns, leaving them reliant on e-commerce platforms for groceries and other items. Pinduoduo’s business model, which allows buyers to enjoy deeper discounts on products in groups, helps it attract consumers with less disposable income, especially in second-tier cities.
GAP(GPS-US) fell 6.92% to $10.35
American casual apparel retailer GAP announced on Thursday that its first-quarter financial report turned from profit to loss compared with the same period last year. The ineffectiveness of its affordable brand Old Navy in attacking the large-size market was the main reason for dragging down the performance of the previous quarter.
GAP Chief Financial Officer Katrina O’Connell said in a statement that the company is revising its full-year outlook to reflect the impact of specific factors on the company’s near-term business performance, including the challenges of Old Navy, uncertainty in the consumer environment, cost headwinds and the slowdown in China’s economy. .
Daily key economic data:
- U.S. core PCE price index rose 4.9% y/y in April, expected 4.9%, and the previous value of 5.2%
- U.S. personal consumption expenditures (PCE) increased 0.9% in April, expected 0.8%, and the previous value was 1.4%
- US personal income rose 0.4% in April, expected 0.5%, the previous value of 0.5%
- U.S. merchandise trade account in April ($100 million) – 1059.4, expected – 1148, previous value – 1259
Wall Street Analysis:
Troy Gayeski, chief market strategist at FS Investments, believes that the current market trend is a classic bear market rebound or a rebound from the bottom, people’s inflation expectations have reversed, and new bullish forces have emerged in the market.
Anastasia Amoroso, chief investment strategist at iCapital, said the market seemed to be looking too bad and underpriced earlier and could see more stability next. However, the market environment will remain limited in the next 3-6 months.
Bank of America strategist Michael Hartnett believes that the summer rally is expanding, but it could still fall afterward. “We will lighten up on rallies, but not in haste.”