After the U.S. House of Representatives Speaker Nancy Pelosi ended her visit to Taiwan, the market’s attention shifted from the tension between the United States and China, focusing on the ISM non-manufacturing index to be released next, to see whether the health of the U.S. economy is true or not. The Fed’s dovish officials turned hawks and attracted investors’ attention. U.S. stocks opened higher on Wednesday (3rd).
Before the deadline,Dow Jones Industrial Averagerose more than 200 points or nearly 0.7%,Nasdaq Composite Indexrose more than 150 points or nearly 1.2%,S&P 500 Indexrose nearly 0.8%,Philadelphia SemiconductorThe index rose more than 0.5%.
U.S. House of Representatives Speaker Nancy Pelosi ended her short visit to Taiwan today and will continue her Asia trip to South Korea. China strongly condemned Pelosi’s visit to Taiwan and announced a series of military exercises in waters near Taiwan, but investors took some comfort in the hope that Beijing’s actions would still be restrained.
While concerns over U.S.-China tensions may have eased on Wednesday, investors still faced concerns that inflation and central bank policy could affect global growth.
On the Fed side, San Francisco Fed President Mary Daly, Chicago Fed President Charles Evans, and Cleveland Fed President Loretta Mester have all expressed their stance on curbing Inflation is determined, suggesting that it is still inclined to support sharp interest rate hikes.
St. Louis Fed President James Bullard also said on the same day that the Fed may have a way to slow inflation and achieve a “soft landing” without triggering a U.S. recession.
In terms of energy, the Organization of the Petroleum Exporting Countries and its partners (OPEC+) on Wednesday only agreed to increase production by 100,000 barrels of crude oil per day in September, the smallest increase in the organization’s history, far lower than the increase in production in previous months, alleviating the shortage of crude oil market demand. The situation is limited, and the international oil price once rose.
As of 21:00 on Wednesday (3rd) Taipei time:
Stocks in focus:
Airbnb(ABNB-US) fell 4.96% to $110.58 a share in early trade
Although Airbnb’s second-quarter profit topped Wall Street expectations, revenue was in-line, and it announced a $2 billion treasury stock plan, second-quarter bookings of $103.7 million were slightly below consensus estimates of $106 million. However, Citi, which is now watching demand trends in the third quarter given potential macro headwinds, lowered its price target on Airbnb to $140 a share from $160 a share, but maintained a Buy rating.
CVS Health(CVS-US) rose 3.80% to $98.99 a share in early trade
The U.S. pharmacy chain CVS announced its bright financial report for the previous quarter before the market, with second-quarter revenue of $80.64 billion and adjusted earnings per share of $2.40, beating analysts’ estimates of $76.37 billion and $2.17. Meanwhile, CVS raised its full-year earnings, forecasting full-year adjusted EPS of between $8.40 and $8.60, compared with a previous estimate of between $8.20 and $8.40.
SoFi(SOFI-US) rose 13.42% to $7.27 a share in early trade
Fintech company SoFi’s second-quarter revenue rose to $362 million from $231 million in the same period a year earlier, beating analysts’ estimates of $344 million, and its second-quarter loss, or loss per share, increased from $165.3 million a year earlier $0.48 narrowed to $95.8 million, or a loss of $0.12 per share, beating analysts’ estimates of a loss of $0.14 per share.
Anthony Noto, CEO of SoFi, said that despite the changes in political, financial and economic conditions, the business has maintained strong growth momentum. In addition, the banking franchise is also at the right time, and the economic benefits have begun to have a positive impact on the company’s operations and performance. .
Today’s key economic data:
- U.S. July Markit services PMI final value at 47.3, expected 47, the previous value of 47
- The final value of the US Markit Composite PMI in July was 47.7, expected to be 47.5, and the previous value of 52.3
- US July ISM non-manufacturing index reported 56.7, expected 53.5, the previous value of 55.3
- The monthly rate of U.S. durable goods orders in June was revised to 2%, compared with the previous value of 1.9%
- U.S. factory orders in June reported a monthly rate of 2.0%, expected 1.1%, and the previous value of 1.8%
Wall Street Analysis:
Goldman Sachs Group strategist Sharon Bell said the stock trade does not reflect the headwinds facing the market, which he believes is a bit complacent and not fully considering the risks.
Xi Qiao, managing director of global wealth management at UBS Group AG, said it is difficult for stocks to see any meaningful gains at the moment, arguing that market trading will be mixed and that the market will remain volatile until there is certainty.