On the eve of the tech giant’s heavy earnings report, US stocks opened lower on Monday (26th). Before the deadline, the Dow Jones Industrial Average fell 18 points or 0.05%, the Nasdaq Composite Index fell more than 0.1%, and the S&P 500 index fluctuated in the flat market, with a small drop of nearly 0.3. The bad news of China’s purge continues to suppress the trend of China’s concept stocks.
After China announced the strengthening of supervision over the supplementary education industry last weekend, New OrientalEDU-US), Gaotu (GOTU-US) And a good future (TAL-US) And other Chinese education stocks, and the market opened on Monday to continue the decline of last week. Other Chinese technology stocks such as Alibaba (BABA-US), Didi (DIDI-US), Jingdong (JD-US), Pinduoduo (PDD-US) And BEKE were both dragged down, and the opening quotations generally fell.
On the other hand, the market’s concern about weak recovery has caused cyclical stocks including airlines, cruise ships, restaurants and energy stocks to fall. The 10-year U.S. Treasury yield fell again, falling to 1.266% before the deadline, excluding the impact of inflation. The real yield on 10-year US Treasuries fell to a record low on Monday.
Although the Delta variant virus has cast a shadow on the economic recovery, so far the US stocks earnings season has started, corporate earnings performance is still quite eye-catching, and this week’s focus will be on Apple (AAPL-US), Microsoft (MSFT-US), Amazon (AMZN-US) And Tesla (TSLA-US) And other technology giants’ financial reports, as well as the Fed’s July interest rate decision, provide clues to corporate recovery and policy prospects.
Other assets,BitcoinIt was close to 40,000 on MondayDollarThe mark, the highest since mid-June, reported 38,300 before the deadlineDollar, It was reported that Amazon is considering opening before the end of the yearBitcoinPayment, Riot Blockchain(RIOT-US)、Marathon Digital Holdings(MARA-US) And other blockchain concept stocks opened up.
As of 21 o’clock on Monday (26th) Taipei time:
- The Dow Jones Industrial Average fell 17.78 points or -0.05%, temporarily at 35043.77 points
- The Nasdaq Composite Index fell 20.90 points, or -0.14%, to 14816.09 points temporarily
- The S&P 500 Index rose 1.17 points or 0.03%, temporarily at 4,142.96 points
- Fees and a half fell 8.92 points, or -0.27%, to 3271.14 points temporarily
- TSMC ADR fell 1.05% to 115.57 per share Dollar
- The 10-year U.S. Treasury yield fell to 1.266%
- New York light crude oil fell 0.57% to 71.66 per barrel Dollar
- Brent crude oil fell 0.34% to 73.85 per barrel Dollar
- Gold rose 0.01% to 1801.90 per ounce Dollar
- DollarThe index fell 0.15% to 92.79 points
Lockheed Martin announced before the market on Monday that it will report 17 billion Q2 revenue in 2021Dollar, An annual increase of 5%, higher than market expectations, (GAAP) net profit per share was 6.52 Dollar, Slightly lower than expected, Chief Financial Officer Ken Posenriede said that due to the poor performance of the aviation industry, the company’s highly confidential project lost 225 million in Q2Dollar。
On Saturday (24th), China’s anti-monopoly authority ordered Tencent Music to abandon the exclusive copyright of streaming music within 30 days, and imposed a punishment on Tencent in response to Tencent’s acquisition of equity in China National Music Group 5 years ago.Renminbi A fine of 500,000 yuan.
Due to the continued growth in demand for medical equipment, Royal Philips of the Netherlands announced on Monday that its Q2 sales were 4.2 billionEUR, Same-store sales growth of 9%, adjusted EBITA reported 519 millionEUR, Are better than market expectations, and announced that they will implement 1.5 billionEURTreasury stock plan.
However, in order to cope with the millions of sleep respirators recalled from the United States in June, Philips Q2 allocated an additional 250 millionEURReserve funds.
Today’s key economic data:
- At 22:00 Taipei time, the annualized total number of new home sales in the United States in June will be announced, which is expected to be 800,000, and the previous value was 769,000.
- At 22:00 Taipei time, the annualized monthly growth rate of new home sales in the United States in June will be announced, which is expected to be 4.0%, and the previous value-5.9%
- At 22:30, Taipei time, the Dallas Fed July manufacturing activity index will be announced, which is expected to be 32.1 and the previous value is 31.1.
Wall Street analysis:
David Kostin, US equity strategist at Goldman Sachs, believes that the Delta variant virus should pose a small risk to US stocks. From an economic point of view, the US’s extensive vaccination and epidemic prevention strategies show that even if the number of confirmed cases continues to rise, medical and economic Downside risks are also quite limited.
Kostin continued that from a liquidity perspective, strong household cash levels and corporate stock repurchases are expected to continue to push funds into the stock market and increase the likelihood that investors will see stock market corrections as buying opportunities.
NatWest Markets analyst Kevin Cummins said that the main message that Fed Chairman Ball delivered after the end of the July interest rate meeting should be consistent with the congressional testimony in mid-July. He said at the time that the Fed was not in a hurry to tighten its debt purchase plan, but he It may send a clear message to market participants that the countdown has officially begun to reduce the scale.
Hugh Gimber, asset management strategist at JP Morgan, believes that regulatory policies from China are affecting market sentiment, and concerns about whether the increase in confirmed cases will lead to a new round of lockdowns and more supply chain bottlenecks have also triggered some pessimism.