On the evening of the 24th, Beijing time, US stocks opened higher on Monday. Investors pay attention to the U.S. stock financial report and the monetary policy of the Federal Reserve outlook. The five largest technology companies in the United States - Alphabet, Amazon , Apple , Meta and Microsoft will all announce their results this week.
Dow Jones rose 169.30 points, rose at 0.54%, to 31,251.86 points; Nasdaq rose 7.39 points, to 0.07%, to 10,867.10 points; S&P 500 index rose 17.00 points, to 0.45%, to 3,769.75 points.
US stocks rose sharply last week, with the Dow Jones Industrial Average rising 4.9% in a week, the S&P 500 rose 4.7% and the Nasdaq rose 5.2%. Last Friday, the news said the Fed would discuss slowing down the pace of rate hikes at its November meeting, and the news boosted the U.S. stock market that day, despite a possible 75 basis points increase next month.
, a reporter Nick Timiraos, known as the "New Federal Reserve News Agency", posted on Friday that the Federal Reserve is currently considering raising interest rates by 75 basis points at the FOMC meeting in November, and will also discuss the pace of subsequent interest rate hikes and the way to communicate with the public. Although this sentence does not show a signal of the Fed's policy shift, the U.S. stock market still responds positively to this.
The continued sharp fluctuations in the US stock market have forced some major buyers to leave the market and wait and see. Bank of America analysts warned that liquidity in the U.S. Treasury market or the easing level of bond trading has deteriorated to its worst level since the outbreak, making it "vulnerable to shock."
The market generally expects the Fed to raise interest rates for the fourth consecutive 75 basis points on November 2. There is still considerable controversy as the Fed’s key interest rate will eventually rise and whether it will drag the economy into recession, especially considering that the risk of a global economic slowdown is increasing as global central banks unanimously tighten monetary policy.
Starting last Friday, Fed officials have officially entered the silent period before the FOMC monetary policy meeting in November. Before the meeting, all Fed officials did not make any speeches to the media.
is currently the U.S. stock financial report season. Investors are following the five largest technology companies in the United States this week, Alphabet, Amazon, Apple, Meta and Microsoft, which will report financial reports this week.
Analysts warn that a sharp decline in revenues in tech companies is heralding the end of a surge in spending in the past two years, and these large tech companies may face unprecedented spending slowdowns.
It is estimated that the total revenue growth of the five major tech companies in the third quarter is expected to slow to less than 10%, compared with a 29% increase in revenue for the full year last year to $1.4 trillion.
JP Morgan President Daniel Pinto said that the US stock market is not yet at the bottom, and the market's current expectations for listed companies to earn next year are still too optimistic, and the valuations of many markets, including the S&P 500, are still a little higher.
economic data, investors will usher in more inflation data this week, manufacturing and service industry Purchasing Manager Index in October, etc.
analysts said: "Last week, the S&P 500 rose 4.7%, with the energy and raw materials sectors leading the gains, and the defensive sectors lagging behind. The market trend has basically reversed since August. It is still unknown whether the U.S. stock market gains can continue, but it seems to be driven by corporate expectations of EPS (earnings per share) not as bad as market concerns, and market speculation that the Fed will end the tightening cycle in early 2023."
So far, the corporate financial reports have been released mixed. Goldman Sachs and JPMorgan Chase both rose more than 4% last Friday, while Snap fell 28%.
Focus stocks
U.S. investment bank Wedbush analyst Dan Ives said in a latest report that he may be forced to sell to $5 billion to $10 billion in Tesla shares in the near future as Musk prepares to acquire Twitter for $44 billion. Dan Ives said the closing deadline for the deal is October 28, which means Musk will face a week of success or failure. Any sale of Tesla shares may occur this week
Tesla's third-quarter revenue in China increased by 64.8% year-on-year to US$5.131 billion.In addition, Tesla disclosed in its latest 10-Q table that during the nine months ended September 30, Tesla recorded an impairment loss of US$170 million due to changes in the book value of Bitcoin and . Tesla buys Bitcoin at an average cost of about $30,000 per coin, and the current price is about $19,000.
Toyota is considering restarting its electric car strategy to better compete with companies like Tesla and has stopped some work on existing electric car projects.
Apple will release its financial report this Thursday, and Deutsche Bank analysts expect Apple's fourth-quarter results to remain unchanged as easing supply chain problems may offset the negative impact of weakening some business units. Deutsche Bank pointed out that the delivery time of iPhone 14 Pro and iPad Air has been extended.
Deutsche Bank analysts predict that Apple sold about 51 million iPhone 2 in the fourth quarter, with revenue expected to be $44.8 billion, while Wall Street is expected to be $42.6 billion in revenue. Analysts believe the biggest risk for Apple stock comes from management comments on demand, and the company's fiscal first-quarter guidance may be lower than Wall Street expectations.
Deutsche Bank analyst Benjamin Black lowered the Meta Platforms target price to $170 and maintained the buy rating . Black said in a research report that due to the concerns about macroeconomic and the format being converted to short video platform Reels, the stock's performance generally lags behind 's market , and the degree of monetization of Reels is still relatively low compared to the news flow function.
Philips revenue in the third quarter was 4.3 billion euro , lower than the market expectations of 4.452 billion euros; comparable revenue fell by 5% year-on-year, and the market expected to grow by 0.4%. Philips will immediately lay off about 4,000 employees worldwide.
AstraZeneca treatment liver cancer Imjudo/Imfinzi combination was approved by the US FDA.
Schlumberger revenue in the third quarter reached US$7.5 billion, with an adjusted earnings per share of US$0.63, both exceeding market expectations. The board of directors approved a quarterly dividend of US$0.175 per share.
Video game developer Doravi and medical device company Medtronic will jointly develop a new sensor application to evaluate the quality of movement in patients with spinal diseases.
Credit Suisse will pay 238 million euros settlement fees in the investigation of tax fraud and money laundering.
