The Federal Reserve (Fed) will release the minutes of its July meeting later, U.S. Treasury yields climbed, technology and growth stocks were under pressure again, and the weak performance of Target Department Store (Target) dragged down the retail sector, U.S. stocks on Wednesday (17th) ) open low.
Before the deadline,Dow Jones Industrial Averagedown nearly 200 points or nearly 0.6%,Nasdaq Composite Indexfell more than 150 points or nearly 1.2%,S&P 500 Indexfell nearly 0.8%,Philadelphia SemiconductorThe index fell nearly 2.3 percent.
According to data released by the US Department of Commerce today, retail sales rose 0% in July, lower than market expectations of 0.1% and the revised previous value of 0.8%. However, retail sales excluding automobiles and gasoline rose 0.7% in July. Better than market expectations of 0.4%, unchanged from the previous value, while core retail sales in July reported a monthly rate of 0.4%, expected -0.1%, the previous value of 0.9%.
The U.S. retail data is valued by the market, mainly because about 70% of the U.S. economic growth is driven by consumption, and retail sales account for 40% of consumption. Therefore, retail sales data plays an important role in judging the current status and prospects of the U.S. economy.
The US Federal Open Market Committee (FOMC) will release the minutes of its July monetary policy meeting later, which may provide clues to the next rate hike. expected, and stimulated the dollar to strengthen further.
The minutes of the meeting may reveal that the Fed is still actively tightening monetary policy to curb inflation, but hints about the extent of future rate hikes will be the key to the continuation of the dollar’s recent upward trendgoldtrend has a significant impact. According to the CME Group FedWatch Tool, the market estimates a 54.5% chance of a 3-yard rate hike (75 basis points) and a 45.5% chance of a 2-yard rate hike (50 basis points).
In terms of energy, international oil prices fluctuated between ups and downs, close to a more than six-month low, reflecting lingering concerns about the grim economic outlook against the backdrop of high inflation and tightening monetary policy.
As of 21:00 on Wednesday (17th) Taipei time:
Stocks in focus:
Target Department Store (TGT-US) fell 3.09% to $174.63 a share in early trade
Target reported a profit of only $0.39 per share in the last quarter, far below market expectations of $0.72, and revenue of $26.04 billion was in line with market expectations. To. Target Department Store forecasts that the profit margin in the second half of the year will be around 6%, up from 1.2% in the second quarter.
Lowe’s (LOW-US) rose 1.44% to $217.21 a share in early trade
Lowe’s reported second-quarter earnings of $4.67 per share, beating consensus estimates by $0.09, mainly due to improved operations. Although Lowe’s reported revenue of only $27.48 billion, below consensus expectations of $281.2 The same-store sales are also below market expectations, but it is estimated that the annual revenue will be at the upper edge of the financial forecast range.
Krispy Kreme (DNUT-US) fell 11.57% to $12.84 a share in early trade
Krispy Kreme, a doughnut chain, reported a 7.5% annual increase in revenue to $375.2 million and adjusted earnings per share of $0.08 due to worse-than-expected results last quarter, both lower than market estimates of $385.9 million and $0.10. In addition, the company also gave a bleak financial forecast, predicting that the adjusted earnings per share for the 2022 fiscal year will be in the range of 0.29 to 0.32 US dollars, and the revenue will be in the range of 1.49 billion to 1.52 billion US dollars, all of which are lower than market estimates. Krispy Kreme’s stock price plummeted 14.7% before the opening of the US stock market, and continued to decline after the opening.
Today’s key economic data:
- U.S. retail sales in July reported a monthly rate of 0%, expected 0.1%, the previous value of 0.8%
- The annual rate of US retail sales in July was 10.02%, the previous value was 8.73%
- US core retail sales in July reported a monthly rate of 0.4%, expected -0.1%, the previous value of 0.9%
Wall Street Analysis:
Citigroup strategist Nathan Sheets said that despite forecasts that the global economy may narrowly avoid a recession, the economy remains heavily skewed towards downside risks. These factors include,EURThe region’s economy declined more than expected, the Chinese economy was weak, and U.S. consumer spending and labor market conditions accelerated to soften.
Geetu Sharma, founder and investment manager at AlphasFuture LLC, said investors will be looking in the minutes for any clues that the Fed may be slowing the pace of rate hikes as inflation data eases.