China’s epidemic heats up, 2-year and 10-Year U.S. Treasury YieldU.S. stocks were generally weak on Monday (11th) as Wall Street braced for high inflation data and the start of the key earnings season.
Apple and other technology stocks have been killing all the way, Twitter’s stock price has collapsed because Musk refused to buy, China’s lockdown worries have hit Tesla and Chinese electric vehicle concept stocks, and Chinese regulators have opened up Chinese companies such as Alibaba and Tencent last Sunday. The penalty has dragged down the trend of Chinese technology stocks. In addition, due to the expansion of the epidemic, Macau closed all casinos for the first time in more than two years, making gaming stocks generally bloody.
The four major U.S. stock indexes closed all black at the end,Dow JonesSlightly down 164.31 points, S&P closed 1.15% in black,half feetumbled 2.46%.that fingerIt fell 2.26%, snapping a five-session winning streak.
Political and economic news: The US stock market earnings season kicked off with the big banks, JPMorgan Chase, Bank of America reported on Thursday, followed by BlackRock, Citi and Wells Fargo on Friday, plus the consumer price index (CPI) released on Wednesday , is expected to provide investors with clues to explore the economic outlook.
Wall Street believes that while S&P companies typically report better-than-expected earnings, FactSet expects corporate profits to grow at the slowest pace since the fourth quarter of 2020. Analysts expect JPMorgan to report a 25% drop in quarterly profit, while Citigroup and Wells Fargo each see profits fall as big banks “raise expected loan loss provisions,” according to I/B/E/S data from Refinitiv. 38% and 42%.
Federal Reserve Governor Christopher Waller (Christopher Waller), St. Louis Federal Reserve Bank President Bullard (James Bullard) and many other officials have recently repeatedly shouted in favor of raising interest rates 3 yards in July to curb inflation. Ahead of the CPI data, Kansas Federal Reserve Bank President Esther George warned on Monday that raising interest rates too quickly brings the risk of tightening policy faster than the economy and markets adjust. George was the only voter in favor of a 2-yard rate hike at the June FOMC meeting.
On the geopolitical front, natural gas prices surged after Russia began regular maintenance on Monday on the Nord Stream 1 pipeline that sends gas to Germany, amid concerns that Russia could prolong the closure of the airlock.
U.S. Secretary of State Blinken said U.S. President Joe Biden and Chinese leader Xi Jinping are expected to speak on the phone in the coming weeks.
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 555 million, and the number of deaths has exceeded 6.35 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 Monday (11th):
Focus stocks
The five kings of science and technology are all in ink. apple (AAPL-US) fell 1.48%; Meta (META-US) fell 4.68%; Alphabet (GOOGL-US) fell 3.08%; Amazon (AMZN-US) fell 3.28%; Microsoft (MSFT-US) fell 1.18%.
Dow JonesMore than half of the constituents closed in the dark. Nike (US-US) fell 2.61%; Disney (DIS-US) fell 2.32%; Kaiyuan Heavy Industry (CAT-US) fell 2.28%; Boeing (BA-US)1.5%；Merck (MRK-US) rose 1.64%.
half feeThe constituent stock was stained with blood. AMD (AMD-US) fell 3.02%; NVIDIA (NVDA-US) fell 4.33 percent; Applied Materials (AMAT-US) fell 2.82%; Micron (MU-US) fell 2.25%; Texas Instruments (TXN-US) fell 1.27%; Qualcomm (QCOM-US) fell 2.77%.
Taiwan stock ADR is also weak. TSMC ADR (TSM-US) fell 2.88%; ASE ADR (ASX-US) fell 2.32%; UMC ADR (UMC-US) fell 4.12%; Chunghwa Telecom ADR (CHT US) fell 0.40%.
Corporate News
HP (HPQ-US) fell 2.21 percent to $31.40 a share on Monday. apple (AAPL-US) fell 1.48 percent to $144.87 a share.
Global PC shipments fell unexpectedly poorly in the second quarter due to ongoing supply chain issues, China’s coronavirus lockdown and macroeconomic headwinds. According to IDC data, in the second quarter, traditional global PC shipments decreased by 15.3% year-on-year to 71.3 million units, a decline for two consecutive quarters, highlighting that the epidemic dividend has subsided and consumer demand is at risk of long-term demise. Looking at the top five vendors in the PC market, HP (down 27.6% y/y) and Apple (down 22.5% y/y) saw the biggest declines.
Elon Musk, the world’s richest man, sent a letter to Twitter through his lawyers on the 8th, hoping to terminate the $44 billion acquisition transaction. It is rumored that Twitter has hired a heavyweight law firm to file a lawsuit against Musk as soon as this week.
Twitter (TWTR-US) fell 11.40% to $32.65 per share, 40% below the $54.20 per share purchase price Musk agreed to pay in April and has fallen about 33% since the deal was announced.
The bullish news of abandoning the acquisition could not eliminate the impact of the rebound of the epidemic in China, Tesla (TSLA-US) plunged 6.55% to $703.03 a share on Monday.
Uber (UBER-US) fell 5.13 percent to $21.19 a share. A leaked “Uber file” exposed by several foreign media mentioned that Uber colluded with dignitaries from various countries to promote global expansion between 2013 and 2017. French President Macron was also named for suspicion.
Electric car maker Rivian (RIVN-US) plunged 6.44% to $29.93 per share. Sources say Rivian plans to cut hundreds of jobs, possibly around 5% of its total workforce.
Broadcom (AVGO-US) fell 3.17 percent to $482.86 a share. Veteran Tom Krause has resigned as president of the software group after helping chip maker Broadcom buy VMware, and will be moving to another enterprise software company starting July 15,media reported.
Economic data
- The U.S. Conference Board Employment Trends Index reported 119.38 in June, from 118.88 previously
Wall Street Analysis
UBS estimated the US June CPI released on Wednesday to increase by 1.26%, only behind the September 2005 value and higher than the current market consensus of 1.07%, calling on investors to prepare for the soaring CPI.
Morgan Stanley chief equity strategist Michael Wilson has been praised by the market for correctly judging the sell-off in U.S. stocks this year. Looking ahead, Wilson remains bearish on the U.S. stock market outlook. With roughly 30% of U.S. corporate sales coming from overseas, a strong dollar means foreign exchange losses, which could have an unexpectedly large impact on earnings season, he said.
BlackRock analysts believe that this year is the worst in the stock and bond markets in at least 30 years, and investors will be bracing for a new world of heightened macro volatility and rising risk premiums for bonds and stocks, warning investors not to buy the dip.
The figures are updated before the deadline, please refer to the actual quotation.