Last week’s July nonfarm payrolls data eased some worries about an economic slowdown, but investors remained cautious as the data also increased expectations for a hawkish stance from the Federal Reserve, with the four major U.S. stock indexes on Monday ( 8) were mixed.
Before the deadline,Dow Jones Industrial Averageup more than 200 points or nearly 0.65%,Nasdaq Composite Indexrose more than 100 points or nearly 1%,S&P 500 Indexrose nearly 0.7%,Philadelphia SemiconductorThe index fell nearly 0.9%.
The U.S. Senate narrowly passed the Democratic-proposed landmark “Inflation Reduction Act” by a narrow 51-50 vote, which will focus on issues such as taxation, climate and health care. The estimated voting time is Friday (12th).
News of the bill spurred green energy-related stocks higher in premarket, First Solar (FSLR-US) rose more than 6% premarket, SunRun (RUN-US) rose more than 5%, electric car stocks also survived, Tesla (TSLA-US) rose 2.35%, Rivian (RIVN-US) rose 2.61%, Lucid (LCID-US) rose 1%.
In terms of earnings, Japanese investment giant SoftBank Group (SoftBank Group) today announced a net loss of $23.4 billion in the first quarter (approximatelyNew Taiwan Dollar 702.4 billion), mainly due to the global central bank raising interest rates one after another, triggering a sell-off in technology stocks. SoftBank Chief Executive Masayoshi Son said on Monday that the group was considering layoffs at its flagship investment arm, the Vision Fund.
International oil prices fell on concerns that an economic slowdown could affect demand, whilegoldPrice increased.On the other hand, investors turned to digital assets to lead after last week’s strong U.S. nonfarm payrolls reportcryptocurrencyprices go up,bitcoinPrices rose above $24,000.
U.S. stocks rallied higher in July as U.S. companies reported better-than-expected second-quarter earnings, as investors bet corporate profit margins could withstand inflationary pressures, and dovish optimism surrounding the Fed amid weaker economic data It also boosted market sentiment.
However, Morgan Stanley and Goldman Sachs Group strategists predict that given the continued cost pressure, corporate profit margins will decline next year, a prospect that does not match the sentiment of the stock market. Among them, Morgan Stanley strategists are more blunt. The best rally in U.S. stocks is over.
On the central bank front, San Francisco Fed Bank President Mary Daly said the Federal Reserve will not be limited to raising interest rates by 2 yards (50 basis points) at its next policy meeting and said the Fed is far from reducing inflation goal achieved. Meanwhile, Fed Governor Michelle Bowman said the Fed should continue to consider a 3-yard (75 basis point) rate hike similar to the one passed last month until inflation falls significantly.
As of 21:00 on Monday (8th) Taipei time:
Stocks in focus:
Baidu (BIDU-US) rose 0.69% to $138.77 a share in early trade
According to reports, the government departments of Chongqing City and Wuhan City, Hubei Province have taken the lead in releasing the pilot policy for the commercialization of autonomous driving and fully unmanned driving.9888-HK) issued the first batch of unmanned demonstration operation qualifications in the country, allowing self-driving vehicles without a safety officer in the car to carry out commercial services on social roads; Baidu was exclusively approved.
Palantir(PLTR-US) fell 14.10% to $9.84 a share in early trade
U.S. big data services company Palantir Technologies reported earnings for the second quarter of its 2022 fiscal year before the market, with revenue up 26% to $4.73 a share and an adjusted loss of $0.01 per share, in part due to Palantir’s acquisition of a special purpose acquisition company (SPAC). investment. In addition, Palantir slumped more than 15% in early trading as it cut its full-year revenue forecast as the timing of securing some large government contracts remains uncertain.
Global Blood Therapeutics(GBT-US) rose 4.42% to $66.66 a share in early trade
Blood disease drug company Global Blood Therapeutics will be acquired by Pfizer for $5.4 billion, or $68.50 per share in cash. GBT shares have surged 88% over the past two sessions on the news, before jumping more than 4% in premarket trading on Monday.
Today’s key economic data:
- The U.S. Conference Board Employment Trends Index in July was at 117.63, compared with 118.70 previously
Wall Street Analysis:
Mizuho International rates strategist Peter McCallum said the drop in nonfarm payrolls was big enough to spark the inflation debate and refocus the U.S. consumer price index (CPI) data. He believes that in fact only an unexpected drop in the annual rate of CPI growth in July will the market stop thinking the Fed must do more, and as the Fed tightens monetary policy further, the possibility of a hard landing for the economy increases.
Strategists at TD Securities, including Priya Misra, wrote in a note that the U.S. nonfarm payrolls report for July could increase the Fed’s propensity for an early rate hike until policy rates rise sharply above mid-point in the coming months. sexual level.