overnight foreign trading, the three major U.S. stock indexes closed higher across the board, the Dow Jones Industrial Average rose 2.47% to 31,082.56 points, the S&P 500 index rose 2.37% to 3,752.75 points, and the Nasdaq rose 2.31% to 10,859.72 points.
Among them, Caterpillar rose 6.07%, JPMorgan rose 5.25%, leading the Dow Jones Industrial Average. Wande's US TAMAMA Technology Index rose 2.42%, Amazon rose 3.53%, and Tesla rose 3.45%.
Chinese stocks listed in the United States , Huadi International rose 89.27%, and Daily Youxian rose 57.5%.
It is understood that investors are paying attention to the new round of corporate financial reports of US stock . At the same time, the short-term Treasury bond yield declines, and Fed officials are worried that radical interest rate hikes may lead to excessive tightening remarks, bringing a boost to the market.
Comprehensive this week, the Dow Jones Industrial Average rose 4.89%, the S&P 500 rose 4.74%, and the Nasdaq rose 5.22%. Among them, the S&P 500 and Nasdaq both hit the largest single-week gains since June.
Market dynamics
As of the close, all 11 sectors of the S&P 500 index closed higher, with the raw materials sector leading the way with a rise of 3.46%, the finance, optional consumption, energy, information technology/technology, industry, and health care sectors rising by more than 2.9%, and the real estate sector gained less than 0.7% and the worst performance.
Dow Jones market data showed that December gold futures rose $19.50, or 1.2%, closed at $1,656.30 per ounce, after hitting a low of $1,621.10, the lowest intraday level of the most active contracts since April 2020. Gold rose nearly 0.5% this week. Silver rose 38 cents in December to $19.066 per ounce, up 2% and up 5.5% this week. December palladium futures fell $74.10 to $2,005.50 per ounce, down 3.6%, but rose 0.4% this week; January platinum futures rose $18.80, down nearly 2.1% to $933.90 per ounce, up 4.4% this week. December copper rose 6 cents to $3.4745 per pound, up 1.9% and 1.5% weekly.
US benchmark West Texas Intermediate crude oil futures rose 54 cents to close at $85.05 a barrel, up 0.6%, and Dow Jones Market Data showed that the price of contracts rose 0.5% this week. On the ICE European Futures Exchange, the global benchmark December Brent crude oil price rose $1.12 to $93.05 a barrel, up 1.2% and 2% this week. Gasoline prices on the New York Mercantile Exchange rose 0.5% in November to $2.662 per gallon, up 1.2% this week; heating oil prices rose 2% to $3.8323 per gallon, closing down 3.7% this week. Natural gas prices fell nearly 7.5% in November to $4.959 per million British thermal units, the lowest since March 21, with a cumulative decline of 23% this week.
In terms of popular stocks, most of the large technology stocks rose, Netflix rose about 8%, Amazon rose more than 3%, Apple and Microsoft rose more than 2%, Google rose more than 1%, and Meta fell more than 1%.
Popular Chinese stocks listed in the United States rose and fell on Friday, with the Nasdaq Golden Dragon Index closing up 1.1%. Daily Youxian rose by more than 57%, Leju rose by more than 21%, 36Kr rose by more than 10%, Water Drop Company rose by more than 6%, Pinduoduo rose by more than 5%, Douyu , Sohu , Tiger Securities rose by more than 3%, Ctrip , Manbang, Canaan Technology , and Futu Holdings rose by more than 2%, Niu Electric , Autohome, Kuke Music, Vipshop , Qutoutiao , Beike, Cheetah Mobile rose by more than 1%.
New energy sector rose, Ideal Auto rose 2.72%, Xiaopeng Motor rose 2.33%, and NIO rose 2.13%.
It is worth noting that the anti-epidemic concept stock performed strongly, Novavax Pharmaceutical rose more than 12%, BioNTech rose more than 11%, Moderna rose more than 8%, Gilead Science rose more than 2%, and AstraZeneca rose more than 1%. Earlier, U.S. Health Director Murthy said he needed to prepare for the increase in the number of new crown cases this winter. In addition, Pfizer said it expects the commercial price of its new crown vaccine to be raised to four times the original price.
Federal Director: The Fed still needs to continue hikes to curb inflation
Federal Director Lisa Cook said on Thursday that the U.S. inflation rate is still unacceptable and interest rates need to continue to rise to keep inflation under control."Inflation is too high and must be lowered, and we will continue to stick to it until the mission is completed," Cook said at an event. "This may require a continuous rate hike and then maintain policy restrictions for a period of time."
Since the beginning of this year, the Federal Reserve has raised the benchmark rate to slightly above 3% from near-zero levels to curb its highest inflation rate in 40 years. After the September policy meeting, several Fed officials said they expected to raise interest rates to slightly above 4.5% in 2023. Cook said, "Policies must be based on whether we see a substantial decline in inflation in the data, not just based on forecasts. Policy should continue to focus on restoring price stability, which will also lay the foundation for a continued strong labor market."
Recently, well-known American journalist Nick Timiraos made his latest view: the Federal Reserve is expected to raise interest rates by 75 basis points again at the next interest rate meeting (November 1-2), and it may be discussed whether and how to send signals that the pace of rate hikes in December will slow down.
He believes there are quite a bit of disagreement within the Fed. Some Fed officials said they hope to slow down the pace of interest rate hikes as soon as possible and stop hikes early next year to observe the impact of this year's moves on the economy. They hope to reduce the risk of a sharp economic slowdown caused by interest rate hikes. Other officials believe it is too early to discuss these issues, because high inflation will prove to be more durable and broader.
Nick Timiraos said that since the beginning of this year, the Federal Reserve has raised interest rates by 300 basis points, raising the federal funds rate range to 3.00%-3.25%, the highest interest rate level since the subprime mortgage crisis in 2008. The Fed's past three interest rate meetings (June, July and September) all raised interest rates by 75 basis points, setting the most aggressive rate hike since the 1980s. Before June this year, the Fed had not raised interest rates by 75 basis points in 18 years.
St. Louis Fed Chairman Brad and San Francisco Fed Chairman Daley also made it clear that they are expected to discuss reducing the rate hikes at their policy meeting in November, although they also stressed the need to continue to tighten policies.
, chief global strategist at Nikkei Asset Management, expects the Federal Reserve to raise interest rates by a total of 150 basis points in the next two months, and then start cutting interest rates in the first half of next year.
Bank of America: There is still capital flowing into US stocks, investors have not completely surrendered
Bank of America strategist Michael Hartnett said in a capital flow report that due to high inflation and the risk of recession increases, US stocks still have more room for decline. However, despite the extreme pessimism of market sentiment, stock funds still have capital inflows, and investors' final surrender has not yet arrived. Data from
EPFR Global shows that in the week ended October 19, global equity funds flowed in $9.2 billion, money funds flowed in $14.5 billion, and bonds flowed in $12.2 billion. The data also showed that the amount of gold redemption reached US$1.5 billion. Hartnett said that the global economic recession and credit shocks have just begun, and the market is filled with bearish sentiment, and he still has a negative attitude towards U.S. stocks.
In addition, Barclays pointed out in an analysis report that the Fed may have to slow down or stop tightening policies faster than expected and turn to expand its balance sheet. According to its analysis, at the current tightening rate, the bank reserve level will drop to a key position by the end of 2023. Quantitative change leads to qualitative change, and the Federal Reserve faces considerable challenges in pricing federal funds rate. Therefore, the Federal Reserve's tightening of monetary policy may need to turn in the first half of 2023.
Financial Report Season ushered in the highlight
Next, as the US stock financial report season ushered in its peak, the market will still not calm down.
Large technology companies Amazon, Google, Apple, Meta, and Microsoft will announce their financial reports one after another. Automakers General Motors and Ford Automobile , as well as daily consumer goods manufacturers Kraft Heinz, Coca-Cola and Colgate are also worth paying attention to.
Horizon CEO Chuck Carlson pointed out that due to the heavy weight of these technology stocks, if these companies perform poorly, it will put heavy downward pressure on the market.Charlie Ryan, partner and portfolio manager of Evercore Wealth Management, said that Amazon, Google and Microsoft all rely on the cloud computing business, which will become the focus next week.
Wedbush analyst Dan Ives and John Katsingris said that the upcoming financial reports will either expose the negative fundamentals of the entire technology field, resulting in a significant reduction in earnings by 2023, or it may prove that it is too early to say that the recent negative remarks about the demise of growth-based tech companies, and many tech companies have performed well.
Pfizer's new crown vaccine plan to raise the price three times
Pfizer's latest disclosures are expected to increase the commercial price of its new crown vaccine to four times the original price, and the price of adult vaccines will rise to $110 to $130 per dose. During the trading session of US stocks on Friday, the price of Pfizer rose by more than 4%.
is calculated at its commercial selling price median of $120, which is four times the U.S. government procurement price (about $30 per dose of vaccine), and the market expects its revenue to grow significantly, thus driving its stock price higher.
On Thursday evening, Pfizer executive Angela Lukin said the company is still in talks with health insurance companies, but the final price is expected to fall within this range.
Lukin said the company plans to distribute the vaccine through intermediate wholesalers that its products are usually used, and plans to package the vaccine into a single dose flask instead of the multi-dose flask used during the pandemic.
US government officials said that companies such as Pfizer will eventually sell COVID-19 vaccines in the commercial market just like selling other vaccines, drugs and testing reagents.
Pfizer believes that the market size of the new crown vaccine is expected to reach the scale of the adult flu vaccine, but based on the current vaccination situation, it will take longer to establish a children's market.
Pfizer said the COVID-19 vaccine may be commercially promoted as early as next year, but this will depend on factors such as when the contract with the federal government expires and when existing supply in the United States will run out.
Wells Fargo analyst Mohit Bansal said the new pricing range far exceeds our expected $50 per dose, which could increase the annual revenue of the Pfizer vaccine by about $2.5 billion to $3 billion.
(the manuscript is integrated from Wind, etc.)
Editor: Peng Bo
Proofreading: Yang Lilin
