The Federal Reserve released the hawkish June meeting minutes on Wednesday (6th), reiterating its commitment to fighting inflation, New York crude oil fell into a bear market, and energy stocks were under heavy selling pressure. Fortunately, technology stocks pulled sharply in late trading, and the four major indexes turned red. to receive.
In terms of data, the U.S. ISM non-manufacturing index in June reported 55.3, which was better than market expectations. Although it fell for three consecutive months and hit a new low since May 2020, it remained above 50 basis points. The number of JOLTS job vacancies in the United States in May was 11.254 million, the largest monthly decline since the epidemic for two consecutive months, highlighting that the wave of resignations is cooling down.
On the political and economic front, the Fed released the minutes of last month’s FOMC meeting, stating that if inflation does not decline as expected, the Fed may adopt a “more restrictive” policy stance, although this may slow economic growth for some time. pace. Officials at the meeting expected another 2 or 3 rate hikes at the July meeting.
Following the release of the minutes, traders in federal funds rate futures raised the chance of a three-point rate hike in July from around 83 percent to more than 90 percent, according to CME’s FedWatch tool.
Western countries continue to expand sanctions against Russia. After the seven major industrialized countries (G7) agreed to study setting a cap on Russian oil prices at the end of last month, foreign media quoted sources on Tuesday as saying that the United States and allies are discussing limiting Russian oil prices to a barrel Between 40 and 60 US dollars, in order to weaken Russia’s financial resources, while stabilizing international oil prices.
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 551 million, and the number of deaths has exceeded 6.34 million. More than 12.1 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Wednesday (6th):
Focus stocks
The five kings of science and technology continue to rise. apple (AAPL-US) rose 0.96%; Meta (META-US) rose 0.94%; Alphabet (GOOGL-US) rose 1.16 percent; Amazon (AMZN-US) rose 0.73%; Microsoft (MSFT-US) rose 1.28%.
Dow JonesConstituent stocks trade with each other. UnitedHealth (UNH-US) rose 1.99%; Traveller (TRV-US) rose 1.61 percent; Cisco (CSCO-US) rose 1.74 percent; Walgreens United Boots (WBA-US) fell 1.9 percent; Chevron (CVX-US) fell 1.32 percent; Goldman Sachs (GS-US) fell 1.16%.
half feeMore than half of the constituents closed in the red. AMD (AMD-US) rose 0.20%; NVIDIA (NVDA-US) rose 1.11 percent; Applied Materials (AMAT-US) rose 0.65%; Micron (MU-US) rose 1.13 percent; Texas Instruments (TXN-US) rose 1.15%; Qualcomm (QCOM-US) rose 0.98%.
Taiwan stock ADRs were generally weak. TSMC ADR (TSM-US) fell 0.72%; ASE ADR (ASX-US) fell 1.98%; UMC ADR (UMC-US) fell 3.05%; Chunghwa Telecom ADR (CHT US) fell 1.99%.
Corporate News
apple (AAPL-US) rose 0.96 percent to $142.92 a share. Goldman Sachs warned that if the global economic recession comes, Apple’s hardware and equipment sales will be at risk, and revenue for the next two consecutive fiscal years will be reduced by 2%, so Apple’s target price is lowered from the previous $157 to $130 , maintain the “Neutral” rating.
Microsoft (MSFT-US) rose 1.28 percent to $266.21 a share. UK Competition and Markets Authority (CMA) on Microsoft’s acquisition of video game publisher Activision Blizzard (ATVI-US) to launch a preliminary antitrust investigation to assess whether the transaction will harm market competition, lead to higher prices or reduce consumer choice, and is expected to complete the assessment by September 1 this year before deciding whether to conduct further investigations.
American electric car maker Tesla (TSLA-US) volatile to close 0.57% to $695.20 per share. Preliminary estimates released by the China Passenger Car Association (CPCA) on Wednesday showed that Tesla sold about 78,000 Chinese-made electric vehicles in China in June, a monthly increase of 142% and an annual growth rate of 135%.
Intel (INTC-US) rose 0.82 percent to $36.99 a share. Intel confirmed on Wednesday that it had sold “some assets” in its drone light show business to Nova Sky Stories, the company of Musk’s brother Kimbal Musk, as it focuses on its chip business, but did not disclose the price for the sale.
Ericsson ADR (ERIC-US) rose 0.68 percent to $7.42 a share. Ericsson revised down its forecast for the number of 5G users this year, from 1.1 billion previously to 1 billion, and it is estimated that 5G users will reach 4.4 billion in 2027.
Economic data
- The final value of the U.S. Markit Services PMI in June was 52.7, expected to be 51.6, and the previous value of 51.6
- The final value of the US Markit composite PMI in June was 52.3, expected 51.2, the previous value was 51.2
- US June ISM non-manufacturing index is expected to 54.3, the previous value of 55.9
- U.S. JOLTs job openings expected to be 11 million in May, compared to 11.4 million previously
Wall Street Analysis
Priya Misra, head of global rates strategy at TD Securities, said: “In fact, the minutes reflect the Fed’s concerns about inflation, although Fed officials believe that inflation is likely to remain high for some time and the risks to growth are higher. , but they still talked about potentially tighter tightening in due course, which is more hawkish than the market’s growing confidence that the Fed will be reluctant to raise rates because of a recession.”
Hugh Gimber, global market strategist at JPMorgan Asset Management, pointed out that the market movement in the past few sessions has been a typical recession pricing, and investors are increasingly aware of the risks.
Hans Peterson, head of global asset allocation at SEB Investment Management, commented: “For global markets to feel better again, oil prices and inflation must fall and remain low, and we are watching how consumers react and when global central banks will exit quantitative tightening. “
Dan Suzuki, a fund manager at Richard Bernstein Advisors, warned that corporate profit growth continued to slow, coupled with continued liquidity crunch, and the tech bubble has not yet collapsed, implying investors not to snap up tech stocks.
Cameron Dawson, chief investment officer at NewEdge Wealth, said: “Will the market experience a 30% decline, which is the average decline in a recession, or a 50% decline in the two debt crises of 2000 and 2008? Investors are advised to fall in the S&P Buy value stocks around 3400-3500.”
The figures are updated before the deadline, please refer to the actual quotation.