Good news from corporate earnings reports such as Starbucks, Moderna and PayPal, and positive economic data improved market sentiment. The VIX panic index fell below 22, and US stocks opened higher on Wednesday (3rd). Unaffected by the continued rise in U.S. bond yields, technology stocks rose particularly strongly.Dow JonesClosed more than 410 points in the red, the best single-day performance since July 27,that fingerIt rose nearly 2.6%, and the S&P rose more than 1.5%, ending a two-day losing streak.
Sentiment was also lifted by comments from St. Louis Fed President James Bullard, who said: “As Chairman Ball said, the U.S. is not in a recession right now, and because of job gains in the first half of the year, it’s hard to tell. There’s a recession. The Fed may have a chance for a soft landing.”
Oil prices traded lower after a brief rebound after the Organization of the Petroleum Exporting Countries and its partners (OPEC+) agreed only on Wednesday to increase output slightly in September, which did little to ease a tight supply in the oil market.
U.S. House of Representatives Speaker Nancy Pelosi wrapped up a nearly 19-hour visit to Taiwan on Wednesday and moved on to her next stop, South Korea. Pelosi’s visit to Taiwan has brought U.S.-China relations to a freezing point, and tensions across the Taiwan Strait have escalated. The Chinese People’s Liberation Army will conduct military exercises to block Taiwan from 12:00 on the 4th to 12:00 on the 7th. The foreign ministers of the seven major industrialized countries (G7) called for China, resolve tensions across the Taiwan Strait peacefully.
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 580 million, and the number of deaths has exceeded 6.4 million. More than 12.3 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Wednesday (3rd):
Focus stocks
The five kings of science and technology are collectively attacking high. apple (AAPL-US) rose 3.82%; Meta (META-US) rose 5.37%; Alphabet (GOOGL-US) rose 2.56%; Amazon (AMZN-US) rose 4.00%; Microsoft (MSFT-US) rose 2.78%.
Dow JonesMore than half of the constituents closed in the red. Disney (DIS-US) rose 4.12%; Salesforce (CRM-US) rose 3.19 percent; American Express (AXP-US) rose 2.53 percent; Nike (OF THE US) rose 2.25 percent; Chevron (CVX-US) fell 2.38%.
half feeConstituent stocks closed higher, only AMD and Entegris fell. AMD (AMD-US) fell 1.21%; NVIDIA (NVDA-US) rose 1.98 percent; Applied Materials (AMAT-US) rose 3.83%; Micron (MU-US) rose 2.85%; Texas Instruments (TXN-US) rose 3.53%; Qualcomm (QCOM-US) rose 1.45%.
Taiwan stock ADR Qi Yang. TSMC ADR (TSM-US) rose 0.44%; ASE ADR (ASX-US) rose 2.25%; UMC ADR (UMC-US) rose 1.98%; Chunghwa Telecom ADR (CHT US) rose 0.12%.
Corporate News
Container shipping giant Maersk (AMKBY-US) rose 5.62% to $14.57 a share. Benefiting from the continued increase in global shipping rates due to global supply chain congestion, Maersk’s second-quarter financial report exceeded expectations, and it also raised its full-year 2022 financial forecast. However, Maersk warned that global global container demand is expected to cool in 2022 due to weakening consumer confidence and supply chain congestion.
Moderna (MRNA-US) surged 15.97% to $186.49 per share. Modena announced its financial report for the second quarter of the 2022 fiscal year before the market on Wednesday. Thanks to the strong sales of the new crown vaccine, revenue and profit were better than analysts’ expectations. At the same time, Modena also announced a $3 billion treasury stock plan. .
The coffee chain Starbucks (SBUX-US) rose 4.25 percent to $87.27 a share. Starbucks reported after the bell on Tuesday that profit and revenue for the third quarter of fiscal 2022 were better than expected, largely due to strong demand for cold drinks from U.S. consumers.
Fintech giant PayPal (PYPL-US) surged 9.25% to $97.92 a share. PayPal on Tuesday reported better-than-expected second-quarter earnings and raised its full-year forecast. PayPal said in its earnings report that it had signed a value-creating information-sharing agreement with its largest shareholder, Elliott Management.
Economic data
- U.S. July Markit services PMI final value at 47.3, expected 47, the previous value of 52.7
- 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
Compared with the many twists and turns in the previous trading day, U.S. stocks ushered in a rebound on Wednesday. Credit Suisse U.S. stock strategist Jonathan Golub commented that people generally expected poor earnings, but they did not develop as expected.
“Now that 70% of corporate earnings have been reported, we can say for certain that this is not the end of the earnings season that many feared,” said Art Hogan, market strategist at B. Riley Wealth. “It’s important.”
Low volume in stocks during the summer lull also tends to amplify small market moves, sometimes making it look more exciting than it actually is, said April LaRusse, head of fixed-income investing at Insight Investments.
However, Goldman Sachs Group strategist Sharon Bell warned that the stock market did not reflect the headwinds facing the market, and the market was a little complacent and did not fully consider the risks.
The figures are updated before the deadline, please refer to the actual quotation.