2024-02-27 22:51:48
U.S. Stock Diary｜The S&P NASDAQ Index stabilizes, rumors indicate it has given up on building a car, and Apple surges (Michael M. Santiago via Getty Images)
The Wall Street stock market continued to run rampant, with the three major indexes experiencing mixed gains and losses. The Dow Jones fell about 100 points, falling for two days in a row, while the S&P 500 and Nasdaq rose less than 0.4%. The market reacted positively to the news that Apple had abandoned its decade-long electric vehicle development plan, and Apple’s stock price closed up.
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Market conditions on February 27 (Tuesday)
l The Dow Jones index fell 96.82 points, or 0.25%, to 38,972.41 points.
l The S&P 500 index rose 8.65 points, or 0.17%, to 5,078.18 points.
l The Nasdaq index rose 59.05 points or 0.37% to 16,035.30 points.
l New York oil futures for April delivery closed at US$78.87 a barrel, up US$1.29 or 1.7%.
l New York April gold futures closed at $2,044.1 an ounce, up $5.2 or 0.3%.
l The U.S. 10-year Treasury bond yield closed at 4.315%, up 1.6 points.
According to media reports, Apple disclosed internally that the company has canceled its decade-long electric vehicle research and development plan and the team will turn to generative AI. This surprised about 2,000 employees, and the company will also lay off employees. After the news came out, Apple turned from falling to rising, closing up 0.8%.
Macy’s rose 3.4%. Its last quarter revenue was worse than expected, but the market welcomed its announcement to close 150 underperforming stores. Zoom’s stock price rose 8% due to satisfactory performance.
Biopharmaceutical company Viking Therapeutics is developing an oral weight loss drug. Patients in the study tolerated the drug very well. On average, they lost 13.1% of their weight during the trial, and there are signs that they can lose more weight. . After the news was announced, Viking’s stock price closed soaring 121%.
Citi believes that the current market situation should not be compared with the huge technology bubble. “The current price-to-earnings ratio is well below the levels of 1999 to 2000. In addition, we believe that the fundamentals are very different now than then,” said Citi Research Head of U.S. Equity Strategy Scott Chronert writes. “While the index may exceed our year-end target of 5,100 points in the short term, it is too early to say that it will reach our projected best-case scenario of 5,700 points.”
Morgan Stanley believes that if the U.S. Congress fails to reach an agreement on the budget in time next Friday, March 8, defensive stocks may come under pressure. “Geopolitical tensions have heightened, and we are generally surprised by the extent of Washington’s budget intransigence,” Morgan Stanley analyst Kristine Liwag wrote in a report. “We believe that the shutdown situation will put further pressure on defensive stocks.” Because in the case of a shutdown, new contracts cannot be executed and new funds cannot be allocated.
Fed official Bowman expressed caution about the path of monetary policy. “If incoming data continue to show that inflation is continuing to move toward our 2% goal, then we will eventually gradually lower the policy rate as appropriate to prevent monetary policy from becoming overly restrictive.” Sex. In my opinion, we are not there yet,”
Anna Wong, chief U.S. economist at Bloomberg, said, “We do not believe that the interest rate cut must be at the meeting where economic forecasts are released, but depends on changes in economic data. But we expect that the interest rate cut will be 125% starting in May 2024. An idea.”
“Given that the unemployment rate is low and the economy seems to be moving at a healthy pace, the policy philosophy is probably ‘do no damage.'” Kathy Jones, chief fixed income strategist at Charles Schwab, said: “If the economy weakens, there is a lot of room for interest rate cuts. , but if inflation rebounds, it will be more difficult.”
Current interest rate swap contracts show that investors believe the Federal Reserve will only cut interest rates by 0.75% in 2024.
In terms of data, U.S. factory orders fell 10.1% month-on-month in August, dragged down by a 42.2% drop in transportation orders. The decline was larger than expected and the largest drop on record. Excluding transportation, factory orders edged down 0.1%, narrowing from the 0.7% decline in July. Excluding defense, factory orders also fell 10.3% in August, worse than the 11.3% increase in July.
U.S. consumer confidence fell for the first time in four months. Data from the Conference Board showed that consumer confidence fell to 106.7 in February, below the expectations of all economists surveyed by Bloomberg and from a downwardly revised reading of 110 the previous month. The expectations index fell to a three-month low, while the current situation index also declined. Consumers’ average inflation expectations for the next 12 months continue to fall and are at their lowest level since 2020.
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