On October 19th local time, the three major U.S. stock indexes closed down collectively, bank stocks fell across the board, and energy stocks generally rose.
Tesla disclosed its third-quarter report. The third-quarter earnings continued to grow beyond expectations, but revenue was lower than Wall Street 's expectations for the first time in a year, and the stock price fell by more than 6% after the market closed.
Recently, Wall Street has frequently issued warnings that US stocks may fall further. Marko Kolanovic, the most determined bull in Wall Street, chief stock strategist at JPMorgan Chase , has also begun to turn against him and is increasingly optimistic about the stock market. He believes that the tough Fed's hike of interest rates may lead to an increase in the risk of policy mistakes.
US stocks stopped rising for two days
On October 19th local time, the three major US stock indexes closed down across the board, stopping rising for two days. As of the close, the Dow Jones Industrial Average fell 0.33% to 30,423.81 points; the S&P 500 index fell 0.67% to 3,695.16 points; the Nasdaq fell 0.85% to 10,680.51 points. Analysts said that inflation in euro hit a new high, and the UK's inflation was the highest in 40 years. There was a panic about the expectation of central bank hawks interest rate hikes hilarious rising recession.
Source: Wind
Bank stocks fell across the board, JPMorgan Chase fell more than 1.9%, Citigroup fell more than 1.8%, Morgan Stanley fell more than 2.2%, Bank of America fell more than 2.7%, Wells Fargo fell more than 2.2%.
energy stocks rose collectively, ExxonMobil rose nearly 3%, Chevron rose more than 3.2%, ConocoPhillips rose more than 2.7%, Schlumberger rose nearly 5%, and OccupyPhone rose 1%.
Tesla's revenue was lower than expected for the first time in a year
After the US stock market on October 19, local time, Tesla's third-quarter revenue hit a record high in a single quarter, with earnings per share and net profit close to the highest level in a single quarter, but both revenue and gross profit margin were lower than expected. The gross profit margin of the automobile business was below 30% for two consecutive quarters. In the financial report of
, Tesla continued to reiterate that it expects annual vehicle delivery to grow by 50% over the years, but admitted that revenue was affected by negative foreign exchange, and the average selling price (ASP) of the automobile fell month-on-month in the second quarter.
commented that Tesla's ASP actually fell 4% month-on-month because the management points earned by selling zero-emission cars - the so-called "selling carbon" income is lower, so the gross profit margin is lower than expected. After the financial report of
was announced, Tesla's stock price rose rapidly after the session. 's increase was close to 3%, and soon plunged and turned to a decline, falling by more than 6%, and then the decline narrowed.
Source: Wind
The majority turned against
Wall Street collectively shorted US stocks
On Wednesday, October 19, the Federal Reserve released the latest Beige Book , saying that since the last report, the US national economic activities have expanded moderately, but the situation in different industries and regions is different. Among them, activity in four regions remained flat, and two regions saw a decline. The slowdown or weakness in demand was mainly attributed to rising interest rates, inflation and supply disruptions. The Beige Book mentioned that respondents became more pessimistic about the outlook for the U.S. economy as concerns about weaker demand grew.
Amazon founder Bezos has become the latest business tycoon to warn about the economic situation, saying that the future may be more difficult. As the Federal Reserve continues to "hawks" this year, Marko Kolanovic, the most determined bull in Wall Street and chief equity strategist at JPMorgan Chase, has also begun to turn against him and is increasingly optimistic about the stock market. He believes that the Federal Reserve's tough interest rate hike measures may lead to an increase in the risk of policy mistakes.
In addition, Alex Saunders, quantitative strategist at Citigroup , said that U.S. stocks price the recession higher than any other asset class and may face more declines. The Saunders team believes that no asset class is overpriced on recession risks, but the stock market reflects the situation most clearly: "This time is unusual because stubborn inflation puts pressure on fixed-income products, which usually rebound when recession risks rise."
As the U.S. stock financial season kicks off, Wall Street has frequently warned of further US stocks falling recently.
Bank of America believes that the profits of the S&P 500 component companies are lower than expected, and the proportion of companies that expect future profit reduction is gradually increasing, which is usually a warning of the future performance of US stocks. Bank of America believes that US stocks may still have about 18% downside. According to the bank's statistics, among the S&P 500 stocks that have released financial reports, only 42% of the companies reported two important indicators of revenue and profit, both higher than expected, the lowest since the first quarter of 2020 and lower than the historical average of 47% in the first week of the financial report quarter.
Morgan Stanley strategist Michael J. Wilson said on the 17th that the S&P 500 index fell 25% this year and is testing the "important support bottom" of the 200-week moving average , which may trigger a technical rebound, but maintain a long-term overall negative view of US stocks, and it is expected that "corporate profits will slow down sharply" in the next 12 months.
column editor: Qin Hong Text editor: Cao Fei Title picture source: IC photo Picture editor: Shao Jing
Source: Author: China Securities Journal
