Wall Street digests a fresh wave of comments from Fed officials, mixed economic data,10-Year U.S. Treasury YieldApproaching 4.00%, the main U.S. stock index closed mixed on Tuesday (27th), with energy stocks rising strongly as oil prices got off a nearly nine-month low, but utilities and consumer staples stocks were under heavy selling pressure.
that fingerReceive a bonus of 0.25%,half feerose more than 1%,Dow JonesIt closed at more than 120 points and fell further into a bear market. The S&P fell slightly by 0.21%, hitting its lowest level since December 2020, and fell for the sixth consecutive trading day.
In terms of data, the US Conference Board Consumer Confidence Index reported 108 in September, improving for the second consecutive month, mainly because gasoline prices are currently the lowest since the beginning of the year. The S&P CoreLogic Case-Shiller national home price index showed a seasonally adjusted annual rate of 15.8% in July, well below the 18.1% gain in June and the fastest cooling on record for the index.
On the political and economic front, St. Louis Fed President James Bullard, a hawkish general, pointed out that as inflation pressures threaten the credibility of the Fed’s inflation target, the Fed needs to respond appropriately. Minneapolis Fed President Neel Kashkari said the Fed needs to continue to tighten policy until there is convincing evidence that core inflation is falling.
However, Chicago Fed President Charles Evans made a surprise “dove” on Tuesday, saying the U.S. central bank needs to raise rates by at least another percentage point this year, but he worries about raising rates so fast that it will prompt the Fed It is impossible to accurately measure the impact of its moves on the market.
Hurricane Ian looms large, and U.S. President Biden declares a state of emergency in Florida and authorizes the Department of Homeland Security (DHS) and the Federal Emergency Management Agency (FEMA) to coordinate disaster relief efforts. U.S. Treasury Secretary Janet Yellen said on Tuesday that global warming-related weather disasters are increasingly reducing the productivity of the U.S. economy and draining government resources, arguing for a quick transition to renewable energy.
European authorities are investigating the mysterious leak of two Russian gas pipelines to Germany under the Baltic Sea near Sweden and Denmark, and officials have asked ships to avoid the area to avoid the risk of sinking.
The operator of the Nord Stream gas pipeline said three lines of the pipeline system were damaged in one day, an “unprecedented” damage, and it was impossible to estimate the time of repair, meaning Russian gas could not be piped to Europe this winter.
The global epidemic of new coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States pointed out that the number of confirmed cases worldwide has exceeded 615 million, and the number of deaths has exceeded 6.53 million. More than 12.7 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Tuesday (27th):
- US stocksDow JonesIt was down 125.82 points, or 0.43 percent, at 29,134.99.
- NasdaqThe index gained 26.58 points, or 0.25 percent, to end at 10,829.5.
- S&P 500 IndexIt was down 7.75 points, or 0.21 percent, at 3,647.29.
- Philadelphia SemiconductorThe index rose 24.6 points, or 1.04 percent, to end at 2,398.0.
Focus stocks
The five kings of technology are only Apple. apple (AAPL-US) rose 0.66%; Meta (META-US) ) fell 1.44%; Alphabet (GOOGL-US) fell 0.68%; Amazon (AMZN-US) fell 0.64%; Microsoft (MSFT-US) fell 0.44%.
Dow JonesConstituent stocks trade with each other. McDonald’s (MCD-US) fell 2.9%; Bao Kiu (PG-US) fell 2.75%; Coca-Cola (KO-US) fell 2.57%; Salesforce (CRM-US) rose 1.76 percent; Dow Chemical (DOW-US) rose 0.92%.
half feeConstituent stocks generally rebounded. Intel (INTC-US) fell 0.30%; Micron (MU-US) rose 3.48%; NVIDIA (NVDA-US) rose 1.51%; AMD (AMD-US) rose 1.31 percent; Applied Materials (AMAT-US) rose 1.46%; Qualcomm (QCOM-US) rose 0.50%; Texas Instruments (TXN-US) rose 0.16%.
Taiwan stock ADR ended higher. TSMC ADR (TSM-US) rose 0.03%; ASE ADR (ASX-US) rose 1.94%; UMC ADR (UMC-US) rose 1.39%; Chunghwa Telecom ADR (CHT US) fell 0.38%.
Corporate News
apple (AAPL-US) received a 0.66% dividend to $151.76 a share. The market reported that TSMC’s price increase plan for next year was rejected by Apple. TSMC responded on Tuesday: “No comment.” Apple is TSMC’s largest customer, accounting for more than 25% of its revenue.
Tesla (TSLA-US) rose 2.51 percent to $282.94 a share. Tesla is on track for a record third-quarter vehicle delivery, Electrek reported on Tuesday that CEO Elon Musk sent a letter to employees saying that a large number of cars will be delivered in the final days of September and seeking support from employees .
Twitter (TWTR-US) rose 1.15 percent to $42.09 a share. Archyde.com reported that Musk’s testimony in the Twitter case was delayed until October 6-7.
Intel (INTC-US) fell 0.30 percent to $26.89 a share. Intel will hold the Intel Innovation 2022 event for two consecutive days from the 27th. Intel released the 13th generation Intel Core i9-13900K processor on Tuesday, which can be called the most powerful game processor of the new generation. Intel also introduced a new motherboard with the Intel Z790 chipset and a range of products including Cross-Device Collaboration Technology (Intel Unison).
Economic data
- U.S. building permits revised up to -8.5% in August, down from -10% previously
- The revised value of the annualized total number of building permits in the United States in August was 1.542 million, compared with the previous value of 1.517 million
- The initial monthly rate of US durable goods orders in August was -0.2%, expected -0.4%, the previous value – 0.1%
- US July FHFA house price index monthly rate reported -0.6%, expected -1.1%, the previous value of 0.1%
- US July FHFA house price index reported an annual rate of 13.9%, the previous value of 16.3%
- The seasonally adjusted annual rate of the S&P/CS20 major cities in the United States in July reported an annual rate of 16.1%, expected 17%, and the previous value of 18.7%
- The seasonally adjusted monthly rate of the S&P/CS20 major cities in the United States reported a monthly rate of -0.4%, expected 0.2%, and the previous value of 0.2%
- The U.S. Conference Board Consumer Confidence Index in September reported 108, expected 104.5, and the previous value of 103.6
- The annualized monthly rate of new home sales in the United States after seasonal adjustment in August was 28.8%, expected -2.2%, and the previous value – 8.6%
- The annualized total of new home sales in the United States in August after seasonal adjustment was 685,000, expected to be 500,000, and the previous value of 532,000
- U.S. Richmond Fed manufacturing index reported 14 in September, expected -10, previous value -8
Wall Street Analysis
Wall Street giants Goldman Sachs and BlackRock are both bearish on U.S. stocks. Although U.S. stocks have fallen sharply this year, the market has not yet digested the risk of a global economic recession, and the stock market is likely to fall further in the short term.
“The market is pricing in some of the Fed rate hikes, but we’re a little concerned that it may not have factored in everything and everyone is nervous,” said Laila Pence, president of Pence Wealth Management.
Analysts at Wells Fargo predict that the Fed will set a target range for the federal funds rate of 4.75%-5.00% in the first quarter of 2023.
“It’s just Fed Chairman Powell continuing to try to let the market, investors and the world know that the Fed will have to keep raising rates to keep inflation in check,” said Brandon Pizzurro, director of public investment at GuideStone Capital Management.
Pizzurro warned: “There will be more pain in the stock market, the worst is ahead of us, not behind us.”
The figures are updated before the deadline, please refer to the actual quotation.