On October 20th local time, U.S. three major stock indexes closed down across the board. Federal After the hawkish official statement, the three major stock indexes that rose more than 1% in the early trading followed by plunging and closed down for two consecutive days.
The third quarter report disclosure of the US stock market began. SNAP had revenue of US$1.13 billion in the third quarter, and net profit was -359.5 million US dollars, falling more than 20% after the market; American Airlines had total revenue of US$13.462 billion in the third quarter, and net profit was US$483 million.
institutions said that in an environment of high inflation and low growth, the US stock market has not yet emerged from the predicament, and the volatility of US stocks is expected to remain high.
The three major U.S. stock indexes closed down across the board
On October 20th local time, the three major U.S. stock indexes closed down across the board. Wind data shows that as of the close, Dow Jones Industrial Index fell 0.3% to 30333.59 points; S&P 500 Index fell 0.8% to 3665.78 points; Nasdaq Index fell 0.61% to 10614.84 points.
Source: Wind
US stocks Technology stocks and bank stocks generally fell. According to Wind data, as of the close, Apple , Netflix , Microsoft all fell slightly; Citi , Morgan Stanley both fell by more than 1%.
US stock third quarter report disclosure season has begun. On October 20 local time, American social giants SNAP and American Airlines both released their third-quarter financial reports.
SNAP released its financial report showing that the company's revenue in the third quarter of 2022 was US$1.13 billion, which was previously expected to be US$1.14 billion; net profit was - US$359.5 million, which was expected to be - US$392 million. SNAP had 363 million daily active users in the third quarter, and was expected to be 360 million. It is estimated that the daily active users will be approximately 375 million in the fourth quarter. The company's quarterly sales growth rate hit the slowest in history, as advertisers concentrated on withdrawing orders. SNAP US stocks fell by more than 20% after the market closed.
American Airlines' latest financial report shows that its total revenue in the third quarter was US$13.462 billion, and increased by 50.1% year-on-year; its net profit was US$483 million, compared with US$169 million in the same period last year.
The three major European stock indexes closed slightly higher, Germany DAX index rose 0.2%, France CAC40 index rose 0.76%, and the UK FTSE 100 index rose 0.27%.
Institutions: U.S. stock volatility is expected to remain high
Analysts believe that in the environment of high inflation and low growth, the U.S. stock market has not yet come out of the predicament, and U.S. stock volatility is expected to remain high.
Futu Securities believes that in the long run, the overseas TMT sector is still facing pressure on the rise of interest rates in the US bond , the global macroeconomic , and the intensified geopolitical conflicts. In the short term, with the opening of the US stock financial report season, the subsequent sector trends are mainly dominated by the financial reports of technology giants, and are in a volatile market in the short term. Due to the current market sentiment is relatively pessimistic and performance expectations are relatively conservative, while US macro data shows that its economic performance is still strong. If the technology giant sector exceeds expectations, it is expected to drive the market to rebound rapidly. Fawad Razaqzada, market analyst at
Forex.com and City Index, said that U.S. stocks have not yet emerged, and concerns about the Fed continuing to raise rates in a context of high inflation and low growth means investors should avoid buying stocks in large quantities, even if stocks look cheap now.
Morgan Stanley analyst Mike Loewengart said that with the market paying special attention to performance guidance, U.S. stock volatility is expected to remain high.
JP Morgan analysts said that as the Federal Reserve further pushes policy interest rates to a restricted range early next year, the current tight labor market is expected to relax. Inflation should weaken in the short term, with inflation expected to drop from 8.2% in September to 6.8% in December and should continue to drop to 3.2% by September 2023.
Edited by: Wang Yin
