Source: Wall Street News
US PPI unexpectedly hit the lowest year-on-year growth rate in more than two years in April. After PPI was announced, two-year US bond yields fell 10 basis points intraday, and the US dollar index rebounded to a one-week high. Financial reports and regional banks are concerned about a blow to US stocks. Disney fell nearly 9%, leading the decline in Dow and S&P constituent stocks. Regional bank Westpac, where deposits fell 5.9% in the first week of this month, fell 23%. The NASDAQ hit an eight-month high, and Google rose more than 4%. The pound fell back against the US dollar after the Bank of England raised interest rates and stayed away from a one-year high. Commodities fell sharply, with Luntong falling nearly 4% and futures falling nearly 5%.
Another indicator shows a slowdown in US inflation: after the CPI growth rate in April unexpectedly fell below 5% for the first time in two years, the year-on-year growth rate of US PPI exceeded expectations and slowed to 2.3% in April, the lowest growth rate in more than two years, and the core PPI growth rate was also lower than expected. Meanwhile, the labor market sent a cooling signal: the number of first-time jobless claims in the US last week exceeded expectations for the second week in a row. The number rose to 264,000, a record high since October 2021.
Inflation and unemployment data reflect the impact of the Fed's continued one-year rate hike. After PPI was announced, the US dollar index rebounded at an accelerated pace, reaching 102.00 intraday for the first time in more than a week. The price of US Treasury bonds rose further, and yields declined for two consecutive days. The intraday decline in two-year US Treasury yields, which are sensitive to interest rate prospects, reached 10 basis points. Commentators said that the data shows that inflation has peaked and is declining as the economy weakens. The data supports the Federal Reserve's suspension of interest rate hikes. At the same time, there is currently a risk of economic recession, which has stimulated demand for safe-haven assets.
On Thursday, US stocks were hit by a double blow from corporate earnings and regional banks. It was announced that the number of streaming subscribers in the first quarter generally fell short of expectations. Among them, Disney+ subscribers unexpectedly declined without increasing but falling by 4 million over the end of last year, entertainment and media giant Disney fell sharply. For the first time in six months, it fell more than 9% intraday, becoming the biggest driver of the Dow's decline.
Regional banks are worried again. The West Pacific Bank (PACW) revealed that deposits fell 9.5% in the first week of this month, saying that most of the deposit losses were due to media reports that the bank is studying strategic options such as sales, making savers even more afraid of unsafe deposits. The bank says it has liquidity to meet these withdrawal needs. Currently, it can use liquidity of 15 billion US dollars and uninsured deposits of 5.2 billion US dollars. Despite this, the stock price dropped sharply by double digits when it opened.
Led by Google, which incorporates new AI technology across its entire product line, some technology stocks supported the NASDAQ's intraday rise, but failed to reverse the downward trend in most sectors. S&P declined, and the Dow continued to fall to the five-week low set a week ago.
The Bank of England raised interest rates by 25 basis points as expected by the market on Thursday. At the same time, it is expected that domestic inflation will fall less quickly than previously anticipated, and raised economic growth expectations. It is not expected to fall into recession. Governor Bailey said that the Bank of England will stick to the end to ensure that inflation returns to the target level. Market expectations that the Bank of England will remain tight are heating up, and the exchange rate of the pound against the US dollar fell back to a one-week low, far from the high of over a year set on Wednesday, fueling the dollar's rebound on Thursday.
Commodities fell across the board under the pressure of the dollar's rebound. Gold rebounded and lost in the intraday period. After PPI was announced, it turned down and fell to a low level of more than a week ago. Copper and silver fell even further. Luntong fell nearly 4% in a single day for the first time since mid-March, and New York futures recorded the biggest decline in three months, and fell more than 5% intraday. Some analysts believe that the sharp decline in metals such as copper and silver on Thursday stemmed partly from market concerns about demand prospects. China's CPI inflation announced on Thursday was weak, and new RMB loans added in April fell short of expectations.
The NASDAQ recorded the biggest decline in half a year for Disney, and regional banks Westpac fell 23%, and blue-chip technology stocks such as Google stood up to the NASDAQ's eight-month high
The three major US stock indexes fell sharply intraday. The low Dow Jones Industrial Average and S&P 500 hit a new daily low about half an hour after opening. The Dow fell close to 404 points, down 1.2% during the day, and the S&P fell nearly 0.7%. Later, the decline narrowed. The Dow fell less than 300 points, and the S&P fell less than 0.4%. The Nasdaq Composite Index, which opened slightly higher, turned down at the beginning of the session, falling more than 0.4% when it hit a new daily low in early trading.
Since then, the US stock index gradually narrowed its decline, and the NASDAQ turned higher at the end of early trading. In the end, out of the three major indices, only the NASDAQ closed higher. The Dow fell for four days in a row, continuing to rebound the 1.65% increase last Friday.
The Dow closed down 221.82 points, or 0.66%, to 33309.51 points, close to the closing low since March 30 set last Thursday on May 4. S&P closed down 0.17% to 4130.62 points, taking back most of the gains that rebounded on Wednesday and failed to stay close to the high since May 1 set by two consecutive days of gains on Monday. The NASDAQ closed up 0.18% to 12328.51 points, hitting a new closing high since August 25 last year for two consecutive days. It closed higher on the fourth day of the last five trading days.
The small-cap index Russell 2000, which is dominated by value stocks, closed down 0.84%, outperforming the general market and falling to the highest level since April 24 set by a rebound on Wednesday. The NASDAQ 100 Index, which focuses on technology stocks, closed up 0.31%, hitting a new high since August last year for two consecutive days and the fourth day in the last five trading days. Both the NASDAQ and the NASDAQ rose for two consecutive days.
Of the major S&P 500 segments, only three closed higher on Thursday. Google's communication services rose nearly 1.7%, Amazon's non-essential consumer goods rose nearly 0.6%, and Tyson Foods's essential consumer goods rose 0.3%. Energy led the decline by more than 1.2%, utilities fell 1.1%, real estate and materials fell by about 1%, and finance fell 0.2%, the smallest decline.
Among the constituent stocks of the Dow and S&P 500, Disney, which announced earnings reports after Wednesday, had the highest decline. Its stock price fell more than 5.2% when it opened. The decline in early trading was over 9.1%, and eventually closed down more than 8.7%, the biggest intraday and closing decline since November 9 last year, and a new low since January 5.
The overall decline in bank stocks continued, with regional bank stocks generally falling for four consecutive days.The banking industry indicator KBW Bank Index (BKX) fell more than 2% at the beginning of the session and closed down nearly 1.3%, continuing to approach the low since September 2020 set last Thursday, falling for two consecutive days; the regional bank index KBW Nasdaq Regional Banking Index (KRX) closed down 2.4%, a new low since November 2020; the regional bank stock ETF SPDR S&P Regional Bank ETF (KRE) fell nearly 3% at the beginning of the session and fell close to 2.5%, continuing to approach the low since October 2020 set last Thursday .
Major banks fell in part, with Morgan Stanley falling more than 1%, Citi more than 0.7%, Goldman Sachs falling nearly 0.6%, J.P. Morgan down 0.3%, while Bank of America rose nearly 0.3%, and Wells Fargo rose more than 0.1%. Asset management giant Schwab SCHW (SCHW) rose nearly 0.4%.
Among regional banks, West Pacific Bank (PACW) fell more than 34% at the beginning of the session, closing down 22.7%, setting a new closing low in the past week, close to a record low set last Thursday when stock prices fell low due to consideration of sales news.
Most of the leading technology stocks rose.After two days of continuous decline, Tesla closed up 2.1%, not falling further from the high since April 19, which was refreshed by four days of continuous gains on Monday. Among FAANMG's six major technology stocks, Google's parent company Alphabet surged for the second day in a row after releasing a new big language model and launching AI functions for a series of products on Wednesday, closing 4.3%, hitting a new closing high since August last year for 2 consecutive days; Amazon closed 1.8%, breaking the high since February 2 for 2 consecutive days and closing for 8 consecutive days, the longest continuous rise in nearly five years; Netflix closed 2.8%, rising seven days in a row, breaking the high since April 14; Facebook parent company, which fell slightly on Wednesday, rebounded close to 1.2%, rising close to 1.2% May High since the 3rd; Apple closed 0.1%, rising for two consecutive days, breaking the high since August 18 last year set last Friday; while Microsoft closed down 0.7%, falling to the highest level since January 7 last year set by the rebound on Wednesday.
Chip stocks generally declined, outperformed the market, and closed down on the second day of this week after Tuesday.The Philadelphia Semiconductor Index closed down more than 0.6%, and the semiconductor industry ETF SOXX fell nearly 0.7%. Among individual stocks, Intel fell 3.7%, falling to a low level since March 22; Nvidia fell more than 1% and failed to get close to the high since the end of 2021 set on Monday, while AMD rose slightly by less than 0.1%, rising three times to the high since March 31.
Most AI concept stocks declined.On Wednesday, C3.ai (AI), which rose six times in a row since April 20, closed down 1.7%, BigBear.ai (BBAI) fell 1.6%, and fell two consecutive days to a low since April 25, while SoundHound.ai (SOUN), which fell sharply by 6% on Wednesday and fell off a three-week high, closed 0.8%.
Among the individual stocks that published financial reports,Smart audio manufacturer Sonos (SONO) closed down 23.7% after announcing that losses for the first quarter were lower than expected but lowered guidelines for the second half of this fiscal year due to weak consumer demand and tight channel partner inventories; Beyond Meat (BYND), the first artificial meat stock that plans to sell up to 200 million US dollars of common stock after losing less than expected in the first quarter, fell 18.3%; group buying website Groupon (GRPN), which had lower-than-expected first-quarter revenue and second-quarter guidance, fell 16.1%; while mobile technology companies whose first-quarter revenue and second-quarter guidance were higher than expected AppLovin (APP) closed up 23.5%; Unity Software (U), whose first-quarter revenue and second-quarter guidance were stronger than expected, closed up 12.9%; Tapestry (TPR), the parent company of leather goods brand Coach (TPR), whose first-quarter results and full-year guidance were superior to expectations, closed 8.3%; and influencer brokerage Robinhood (HOOD), whose first-quarter revenue surged 47% beyond expectations, closed 6.4%.
Among individual stocks with large fluctuations,Tire manufacturer Goodyear Tire & Rubber (GT) closed up 21.4% after the agency Elliott Investment Management, which holds about 10% of the company's shares, sent a letter to the company and listed a path that it believes can create value for the company and make full use of its potential; Tyson Foods (TSN) closed up nearly 4.4%, stopping the three-day continuous decline, becoming the constituent stock with the biggest increase in the essential consumer goods sector. The department lowered this year's sales guidelines on Monday due to falling demand for pork and beef, which plummeted 16.4% on the same day; it announced a sharp drop of 16.4% on the same day; it was announced that 1 After a net quarterly loss of 270 million US dollars and a quarterly dividend of $2 per share, Icahn Enterprises (IEP), an investment company owned by Wall Street's “Wolf King” Icahn, closed down nearly 1.8%. The department revealed on Wednesday that the day after Hindenburg released its shorting report, US prosecutors requested it to provide information related to the investigation. It fell more than 20% intraday on Wednesday, closing down 15%.
Popular Chinese securities firms rose overall on Wednesday, outperforming the market.The Nasdaq Golden Dragon China Index (HXC) closed up 3.8%. China Securities ETFs KWEB and CQQQ closed higher by 3.3% and 1.3% respectively. Among individual stocks, Dada rose more than 19%, JD, which had better-than-expected earnings and revenue in the first quarter, closed 7.2%, Pinduoduo also rose more than 7%, Tencent Music rose more than 6%, Alibaba rose more than 6%, Baidu and Xiaopeng Motors rose more than 4%, NIO Auto rose by nearly 4%, Ideal Auto, iQiyi, Shell, and Weibo rose more than 3%, Station B and Jinshanyun rose more than 1%, and Tencent's fan list rose nearly 0.8%, while NetEase fell 0.4%.
On the European stock side, the pan-European stock index maintained its gains in early trading, but turned down in midday trading and eventually closed down roughly, narrowly stopping the two-day continuous decline. The European Stoxx 600 Index rose nearly 0.7% in early trading, closing slightly down 0.02 points. The stock indexes of major European countries had mixed ups and downs. The British and Italian stock indexes fell for three days in a row, German stocks fell two days in a row, and the French and Spanish stock indexes stopped falling twice in a row.
Among the various sectors, a total of nine sectors closed down on Thursday. The basic resources of the mining stock sector hit by the decline in copper and other industrial metals fell more than 2.9%, and the oil and gas sector affected by falling crude oil prices fell nearly 1.5%. The decline far exceeded other sectors. Among the ten sectors that closed higher, personal and household goods, where essential consumer goods were located, rose slightly more than 1%, while other sectors rose less than 0.7%. The industrial sector closed.
Among individual stocks, after warning that this year's performance might be at the low end of the target range due to cost inflation and falling glyphosate herbicide prices, German pharmaceutical and chemical giant Bayer closed down 7.5%, the biggest daily decline in nearly two years, leading the decline in Stoke 600. After falling nearly 44% for three days, the Swedish real estate company Samhallsbyggnadsbolaget i Norden AB (SBB), which downgraded its credit rating to junk grade by S&P on Monday, closed 12.7%, breaking out of a six-year low of nearly six years, reaching 600 shares in Stoke Among stocks, the increase was highest.
British bond yields fell nearly 10 basis points after PPI was announced, US bond yields fell 10 basis points in the two-year period
The price of European treasury bonds rose for two consecutive days after the overall decline for three days. After the US PPI was announced, yields followed the accelerated decline in US bonds. On the day the Bank of England raised interest rates, the decline in British bond yields was the highest. The yield on British 10-year benchmark treasury bonds closed at 3.70%, falling 9 basis points during the day, and is at a low level since last Thursday, May 4. US stocks fell 3.71% at the beginning of the market, far from the high since April 20, which was close to 3.89% on Wednesday; the benchmark 10-year German treasury bond yield closed 2.22%, falling 6 basis points during the day. US stocks fell 2.18% before the market on Thursday, breaking the low since May 4, a new low since May 4, which rose to 2.37% on Wednesday.
The yield on US 10-year benchmark treasury bonds reached a new daily high of about 3.44% in the Asian market, then maintained a downward trend. After announcing PPI before the market, the decline accelerated. It fell 3.35% before the market, breaking the low since May 4. It fell about 10 basis points during the day, far from the intraday high of last Tuesday, May 2, which rose to 3.53% on Tuesday. It was about 3.38% at the end of the bond market, falling about 6 basis points during the day.
The yield on 2-year US bonds, which is more sensitive to interest rate prospects, was above 3.94% when the Asian market hit a new daily high. After the announcement of the pre-market PPI for US stocks, it fell below 3.81% and fell 10.2 basis points during the day, reaching a new low of 4 days this week, far from the intraday high since May 2, which was close to 4.07% on Tuesday. US stocks continued to narrow their decline after the opening of the market, reaching about 3.90% by the end of the bond market, falling nearly 1 basis point during the day.
Crude oil fell to a one-week low two times in a row
International crude oil futures fell midway and failed to rebound after falling back on Wednesday. When the European market hit a new daily high in early trading on Thursday, US WTI crude oil rose to 73.5 US dollars and Brent crude oil rose to 77.41 US dollars, rising about 1.3% during the day. After that, European stocks turned down in early trading. When US stocks hit a new daily low in early trading, US oil fell to 70.63 US dollars, falling nearly 2.7% during the day, oil fell to nearly 2.7% during the day, oil fell to nearly 2.4% during the day.
WTI's June crude oil futures closed down $1.69, a decline of 2.33%, to $70.87 per barrel, two consecutive days after three consecutive gains; Brent's July crude oil futures closed down $1.43, or 1.87%, to $74.98 per barrel. After four consecutive days of continuous gains, they both hit new lows since May 4, saying goodbye to the high since May 1 set on Tuesday.
US gasoline and gas futures fell sharply. NYMEX June gasoline futures, which had been rising for five consecutive days, closed down 1.5% to 2.46 US dollars/gallon, falling from the high since May 1 set for three consecutive days; NYMEX June gas futures closed down 0.05% to 2.1900 US dollars/million British thermal units, continuing to fall below the high since May 1, which had been refreshed for two consecutive days on Tuesday, falling two consecutive days after three consecutive days of gains.
Gold fell two days in a row to a low of more than a week, silver fell nearly 5%, the biggest decline in three months
New York gold futures failed to rebound on Thursday. After European stocks turned upward in early trading, they rose to 2047.6 US dollars. They rose 0.5% during the day, but after the PPI was announced, US stocks declined before the market. The US stock fell to 2016.7 US dollars in early trading, falling 1% during the day.
In the end, COMEX's June gold futures closed down 0.81% to $2020.50 per ounce, two days in a row, hitting a new low since last Monday, May 1, and far from the second-highest closing in history set by close to $2,056 last Thursday.
New York Futures Bank declined for two days in a row, closing down on the fourth day of the last five trading days. COMEX's July silver futures closed down 4.8%, the biggest daily decline since February 3, at $24.424 per ounce, a new low since the April 3 report of $24.021, and fell about 5.2% when the intraday low reached a new intraday low.
Editor/Somer