technology stocks led the rise, and the Nasdaq and S&P 500 index finally ended their three consecutive declines on April 13. The Nasdaq rose by more than 2%, and the yield of US bond further fell.
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U.S. stock closed on April 13, with the Dow Jones Industrial Average up 344.23 points, or 1.01%, to 34564.59 points; the Nasdaq rose 272.02 points, or 2.03%, to 13643.59 points; the S&P 500 rose 49.15 points, or 1.12%, to 4446.60 points.
1, the financial report season kicked off, and airline stocks rose sharply overnight
On April 13, JPMorgan Chase, Delta Airlines and BlackRock took the lead in releasing their results, kicking off the first quarter of 2022 US stocks' financial report season.
, dragged down by increased spending and reduced expenses in its Wall Street division, JPMorgan Chase's first-quarter profit fell 42% to $8.28 billion, earnings per share of $2.63, compared with a profit of $14.3 billion, or $4.50 per share in the same period last year; revenue fell from $32.27 billion to $30.7 billion. The bank also warned of the upcoming economic challenges, while announcing authorization to buy back $30 billion in stock. After the financial report was released, JPMorgan Chase's share price fell $4.24 to $127.30, a drop of 3.2%. BlackRock, a
asset management company, fell $1.09 to $715.74, or 0.2%, after it reported first-quarter profit growth but managed assets decreased. Goldman Sachs (Goldman Sachs), Citigroup (Citigroup 3), Morgan Stanley (Morgan Stanley ) and Wells Fargo (Wells Fargo ) will announce results on Thursday.
airline stocks rose strongly after Delta Air Lines' financial report was announced. Delta Air Lines reported quarterly losses but said it resumed profitability in March and expected to announce second-quarter earnings. After the financial report was released, the stock closed up 6.21% to $41.02 on the same day. Airline stocks rose with the stock price of American Airlines (American Airlines 3) rose $1.82 to $18.95, or 10.6%. Southwest Airlines (Southwest Airlines) rose $3.23, or 7.5%, to close at $46.05.
Barron's report believes that after two years of sluggish profits, the time for airlines to benefit from the surge in travel demand in 2022 is finally coming as passengers hope to make up for the time they lost during the COVID-19 pandemic.
According to statistics, more than 6.5 million people passed the TSA (U.S. Transportation Safety Administration) security check last weekend (April 9-10), which was only about 500,000 less than the figure in the same period in 2019. At the same time, according to monthly consumer statistics from the Bank of America Institute, in March alone, airline spending increased by by 91% year-on-year.
According to calculations by Andrew Didora, global research analyst at Bank of America, airline stocks returned 4.3% in the first quarter of 2022, compared with -4.9% for the S&P 500 over the same period. Didora said that despite being affected by the new crown variant of Omickron , airline stocks still performed well in January and February this year, while in March, slightly inferior.
"Given the geopolitical environment and the 36% increase in aviation fuel prices since the end of February, we believe that the (airline stocks)'s performance in March and year-to-date is impressive and illustrates the strong demand environment as leisure and business travel returns after the coronavirus variant rages," Didora wrote in a research note.
2, A shares Hong Kong stock express: Big white horse lift boosts bulls' confidence
On April 14, the big white horse lift drove the Shanghai Composite Index to run at a high level all day, boosting bulls' confidence. The ChiNext Index hit a new low during the session, and CATL was weak. On the market, the real estate, coal and liquor sectors rose strongly, Kweichow Moutai rose 2.26%, Wuliangye rose 5.7%, Shanxi Fenjiu rose 6.29; Poly Development and Shaanxi Coal Industry hit a record high, Shanxi Coking , Jinke Coal Co., Ltd. , etc. closed the daily limit, Luzhou Laojiao once touched the board.Looking at the
sector, the securities, steel, home appliances, catering and tourism sectors are well-made; the vaccine sector is under pressure, Zhifei Bio and Wantai Bio both collapsed, and the photovoltaic , wind power, and lithium battery sectors are adjusted.
Shanghai Composite Index closed at 3225.64 points, up 1.22%; the ChiNext Index was 2466.29 points, down 0.02%; the Shenzhen Component Index was 11714.62 points, up 1.27%; the Shanghai and Shenzhen Component Index was 4191.57 points, up 1.25%; the Science and Technology Innovation 50 was 975.57 points, up 1.11%; the Shanghai Composite Index was 2928.6 points, up 1.61%; the Wande All A was 4954.7 points, up 1.18%.
CITIC Securities Mingming Bond Research Team said that based on the current market situation, it is believed that the reserve requirement ratio cut is likely to be implemented in the near future. , the People's Bank of China, , may announce the reserve requirement ratio cut arrangements in the next two days, and the possibility of interest rate cuts is not ruled out. The State Council Executive Meeting pointed out that the timely use of monetary policy tools such as reduction of reserve requirement ratios will further increase financial support for the real economy, especially industries, small and medium-sized enterprises, and individual industrial and commercial households, and reasonable concessions to the real economy and reduce comprehensive financing costs.
In terms of the Sino-US interest rate spread and exchange rate , the team clearly expects that the narrowing trend of the Sino-US interest rate spread will continue, and the inverted Sino-US interest rate spread may continue for a period of time. The team believes that the interest rate spread between China and the United States is not the factor that dominates the RMB exchange rate , and the disturbances to the RMB exchange rate stay more at the emotional level. The inverted interest rate spread between China and the United States may trigger the market's expectations of the depreciation of the RMB, and stabilizing the RMB expectations in the future is still the key. In terms of Hong Kong stocks, the three major indexes closed up, with the Hang Seng Index rising 0.67%, the State-owned Enterprise Index 0.97%, and the Hang Seng Technology Index 1.2%. In terms of the
sector, most of the component stocks rose, JD Health rose by more than 6%; auto stocks rose strongly, Xiaopeng Motors rose by more than 5%, BYD shares rose by nearly 5%, NIO rose by more than 4%, Ideal Auto rose by more than 3%; catering stocks soared, Helensi rose by more than 11%, Haidilao rose by 10%, Naixue's Tea rose by more than 8%, and Jiumao Jiu rose by more than 7%.
article | "Barrons" China Market Observation Group
Editor | Liang Mu
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