Source: Wall Street News
Author: Li Dan
The Dow stopped four times in a row. The component stock, Boeing's earnings report, rose 5% at the beginning of the session and closed down nearly 3% after being downgraded by Moody's; Tesla recorded the biggest increase in two years; Google rose to a record high three times in a row before the earnings report; Nvidia closed down 3.3% after rising 2%; the chip stock index rose more than 1% three times in a row, and Texas Instruments closed up 5.6% after the earnings report. UK stocks have left their all-time highs for the time being. China's stock index rose more than 1% and outperformed the market on the 3rd. Station B closed up 11%, NIO and Xiaomi rose more than 3%, and Ideal Auto fell nearly 4%. Demand for the 5-year US bond bid was poor, and the 10-year US bond yield rose for the first time this week. The yen fell below 155 and hit a new low since 1990 for three days; the US dollar index rose after hitting a new low for nearly two weeks. The offshore renminbi fell nearly 200 points intraday, falling below 7.27 for the first time in a week. Bitcoin once fell more than $3,000 and fell below the 64,000 mark. Crude oil declined, and US EIA crude oil inventories turned up in the short term after the announcement. Gold fell three times in a row, and futures earnings hit a new low in nearly three weeks. Luntong stopped two consecutive losses. Renxi hit a new low for another week, but the decline eased markedly.
In the first two days of this week, many tech giants that supported the rise in US stocks fell. Nvidia, which led the tech giant “Seven Sisters,” opened high and went low. At one point in the midday session, it dived nearly 6% from the high level at the beginning of the session. Meta, which will release financial reports after Tuesday's session, also turned down in the intraday market. The three major stock indexes all turned down during the intraday period, and the much-publicized blue-chip earnings report failed to support the general market rally.
The leading stocks that released financial reports showed mixed performance: the first quarter revenue fell short of expectations and auto transport giant Old Dominion Freight Line, leading the decline in the S&P industrial sector; poor performance in the first quarter but rekindled the market's confidence in low-cost cars. After Musk hinted that production of more affordable models would start a year earlier than originally planned, Tesla jumped more than 10%, the best single-day performance in more than two years; the second-quarter revenue guide dived after the Meta market; although Nvidia turned down, the chip insurance index fell Stay on the rise and lead the way Texas Instruments's second-quarter revenue guidance was stronger than expected. Some analysts say that the guidelines indicate that industrial chips are at an inflection point in demand recovery; the year-on-year revenue decline and losses for the first quarter were lower than the expected 5% rise in the Boeing market and then fell. After being downgraded by Moody's to only one level higher than the garbage level, the decline widened to more than 3%.
On the foreign exchange market, the exchange rate of the yen against the US dollar hit a new low since 1990 this week, and fell even below 155.00 in the intraday session on Wednesday, which is seen by the Bank of America as a trigger for intervention by the Japanese government. Boosted by the weakening yen, the US dollar index, which had fallen to a low level in nearly two weeks in the intraday period, turned up. While the US dollar rebounded, Bitcoin accelerated its decline. It fell below 64,000 US dollars in the intraday period and fell more than 3,000 US dollars from the daily high, far from the one-week high created after rising above 67,000 US dollars on Tuesday.
However, Japan may not act in the near future. Takao Ochi, an official of Japan's ruling Liberal Democratic Party, said on Tuesday that there is currently no consensus on what level of the exchange rate is a warning line, and if it falls to 160 or 170, it may prompt the government to act. According to some strategists, the 2022 yen was successfully interfered with because Japan was able to take action when US bond yields peaked. This time, before the US non-farm payrolls report and subsequent CPI were announced next Friday, Japan wasn't that confident. The Bank of Japan, which announced its monetary policy decision this Friday, hasn't appeared yet, and the current key level has changed to 160.
On the bond market side, the US Treasury bid of 70 billion US dollars on Wednesday set a record scale of 5-year treasury bonds. Compared with the steady demand for $69 billion two-year US Treasury bonds completed on Tuesday, the current five-year treasury bond index shows weak demand. The bid ratio is lower than the average of the last six times, and the bid interest rate is higher than the pre-issuance rate at the end. The price of US Treasury bonds in the secondary market was under pressure, and the price rebound after the PMI was announced on Tuesday continued for only one day. The benchmark 10-year US bond yield began to approach the five-month high set last week.
Among commodities, the decline in industrial metals, which plummeted on Tuesday, abated, and Lunxi rebounded. Renxi continued to fall but fell far less than 7% on Tuesday; gold continued to fall this week, and New York futures fell to a low level in nearly three weeks, but the intraday fluctuation with spot gold was less than that of Tuesday, with an intraday rise or fall of less than 1%. Risks in the Middle East eased, the initial value of the US PMI in April was poor on Tuesday, compounded by the impact of a rebound in the US dollar. However, in early trading, the US Department of Energy announced that last week's EIA US crude oil inventory fell for the first time in five weeks, and fell sharply by nearly 6.4 million barrels. The decline far exceeded expectations. Crude oil turned upward in the short term. According to some commentators, oil prices were also hit by EIA data showing that US gasoline supply fell to a low level since mid-February last week, reflecting weak demand.
The Dow stopped four times in a row, Tesla recorded the biggest increase in two years, Nvidia closed down, and the chip stock index still rose three times in a row, and the China General Stock Index outperformed the market for 3 days
The three major US stock indexes collectively opened higher for three consecutive days and fell sharply at the end of early trading. The Dow Jones Industrial Average, which opened slightly higher by nearly 50 points, quickly turned down at the beginning of the session. At the end of early trading, it fell more than 190 points, down 0.5%, slightly higher at noon, and turned up in the short term at the end of the session. The S&P 500 index, which had risen nearly 0.4% in early trading, and the Nasdaq Composite Index, which had risen about 0.9% in early trading, fell by nearly 0.5% and 0.4% respectively in midday trading, then both went up and down, then turned higher again at the end of the session.
In the end, of the three major indices, only the Dow closed down, falling by 42.77 points and 0.11% to 38460.92 points. It stopped rising for four days and fell to its closing high since April 9, which was refreshed on Tuesday. The S&P and NASDAQ rose for three consecutive days. S&P closed up 0.02% to 5071.63 points, breaking the closing high since April 12 for two consecutive days. The NASDAQ closed up 0.1% to 15712.75 points. It still failed to smooth out last week's decline of more than 5%, and closed below the level that would be last Tuesday.
The small-cap stock index Russell 2000, which is dominated by value stocks, closed down 0.36%, outperforming the general market and falling after rising three times to a high level since April 12. The tech-heavy Nasdaq 100 Index closed up 0.32% and rebounded three days after falling to a low level since January 18 last Friday. The Nasdaq Technology Market Capitalization Weighted Index (NDXTMC), which measures the performance of technology components in the Nasdaq 100 Index, closed up 0.09%, continuing to break out of the low since February 21 set last Friday.
Among the constituent stocks of the Dow Index, Home Depot (HD) led the decline by nearly 1.8%, followed by Amazon's decline. Boeing, which reported earnings before the market, rose 5% at the beginning of the market and turned down in early trading. After Moody's downgraded the rating from Baa2 to Baa3 and the outlook was negative, it fell more than 3% and closed down 2.9% in the midday session; Visa, which had higher profits and revenue than expected in the first quarter, rose more than 3% at the beginning of the session.
Among the major sectors of the S&P 500, there were only four losses on Wednesday, with industry falling nearly 0.8%, leading the decline, mainly due to an 11% drop in auto transportation leader Old Dominion Freight Line (ODFL), and a military enterprise General Dynamics (GD), which had lower earnings than expected in the first quarter, a 4% drop; financial and medical services fell between 0.1% and 0.3%, and communication services fell less than 0.1%. Of the seven sectors that closed higher, essential consumer goods rose more than 0.9%, while the IT sector, where chip stocks such as Nvidia are located, rose slightly.
Including Microsoft, Apple, Nvidia, Google's parent company Alphabet, Amazon, Facebook's parent company Meta, and Tesla, most of the tech giants “Seven Sisters” fell at the end of early trading. The closing session had mixed ups and downs, and Tesla performed the best. It was announced that revenue for the first quarter fell 9%, the biggest drop in more than 10 years, but Musk said that after production of more affordable cars would begin early next year, Tesla opened up about 12.6%, rose by about 16.1% in early trading, and narrowed to less than 10% in midday trading, closing up nearly 12.1%, the biggest closing increase since January 3, 2022, and continued to rise two days until April 12.
Among FAANMG's six major technology stocks, the Meta market that will announce financial reports after Wednesday's trading rose 2.8%. After turning down in early trading, it fell more than 1% and closed down 0.5%, and failed to continue to break from the closing low since February 21, which was refreshed last Friday. The decline quickly widened to more than 15% after the post-market earnings report; Netflix, which rebounded more than 4% on Tuesday, opened low and closed down 3.9%, approaching the closing low since February 13, which was refreshed on Monday; Amazon began falling 1.6%, and is close to the closing low since March 18, which was refreshed last Friday; Meanwhile, Apple, which had a rapid rise at the beginning of the market, closed up 1.3% rebounded for three days after falling for five days last Friday to a closing low since April 26, 2023; Alphabet closed up more than 0.7% after rising in midday trading, rising for three consecutive days, breaking the historic closing high set on April 11; while it had risen more than 1% at the beginning of midday trading; Microsoft, which had declined slightly at the end of early trading, closed up nearly 0.4%, rising for three to a week.
Chip stocks generally continued to rise. The Philadelphia Semiconductor Index and semiconductor industry ETF SOXX rose more than 3% at the beginning of the session, and rose less than 0.5% in midday trading, closing up about 1.1% and 1.3% respectively, and rebounded for the third day after three consecutive declines and closing low since February 1.
Among chip stocks, Nvidia rose about 2% at the beginning of the session and turned down in early trading. The decline was close to 4% in early trading, down more than 5.8% from the high level at the beginning of the session, and finally closed down 3.3%. After rebounding for two consecutive days, it began to fall to the closing low since February 21, which plummeted 10% on Friday; AMD, which had risen more than 3% at the beginning of the session, turned down nearly 0.4% at the end of the morning trading; TSMC US stock, which had risen more than 2% at the beginning of the session, turned down more than 2% in early trading and closed down 0.6% in early trading It had fallen more than 1%, closing down 0.3%; however, the announcement of first-quarter revenue and second-quarter guidance after the market on Tuesday was higher than expected Texas Instruments (TXN) rose nearly 8.5% at the beginning of the session, closing up 5.6%; Intel, which was up more than 2% in early trading, closed up 0.6%; Broadcom, which had risen nearly 3% at the beginning of the session, turned down in the short term and closed up 0.6% in midday trading; Seagate Technology (STX), which had higher earnings than expected but lower than expected revenue for the third fiscal quarter, turned up at the end of the session, closing up nearly 0.7%.
Overall gains in AI concept stocks have come to an end. At the close, SoundHound.ai (SOUN), which turned down in midday trading, fell 3.8%, and BigBear.ai (BBAI), which turned down in early trading, fell more than 1%, and Astera Labs (ALAB), known as “Little Nvidia” and sells data center interconnect chips, closed down 1% after early trading, 0.9%, and Palantir (PLTR), which turned down at the end of early trading, fell 0.2%, while Adobe (ADBE) rose about 0.9%, and fell more than 1% (Oracle) in midday trading (Oracle) ORCL) rose 0.2%, while C3.ai (AI), which turned down more than once in the intraday session, closed up less than 0.1%.
Popular Chinese securities generally continued to rise. The Nasdaq Golden Dragon China Index (HXC) closed up nearly 1.1%, outperforming the market for three consecutive days, rising for three consecutive days until closing high on April 11. KWEB and CQQQ closed up about 2.3% and 2.9%, respectively. The new car building forces have yet to rise. At the close of the market, NIO Auto and Xiaomi Fan rose by more than 3%, while Xiaopeng Motors fell by more than 1%, and Ideal Auto fell by 3.8%. Among other individual stocks, at the close, Station B rose about 11%, Tencent fans rose more than 3%, Alibaba rose nearly 3%, JD rose more than 2%, Baidu and NetEase rose about 1%, while Pinduoduo fell nearly 0.4%.
Among the individual stocks that announced financial reports, toy giant Hasbro (HLT), whose profit and revenue for the first quarter were higher than expected, narrowed 11.9%, and its first-quarter losses narrowed beyond expectations, closed 2.4%; biotech company BIIB (BIIB), which had higher earnings in the first quarter and sales revenue of the Alzheimer's drug Leqembi, closed up nearly 4.6%; while first-quarter revenue and second-quarter guidance were lower than expected, closed 3.9%; while first-quarter revenue and second-quarter guidance were lower than expected Expected PV stocks Enphase (ENPH) closed down nearly 5.6%; the orthodontic technology company Align Technology (ALGN), which reported higher earnings and revenue for the first quarter than expected, rose nearly 4% after the market; Ford Motor (F), which had higher-than-expected first-quarter earnings and raised this year's free cash flow guidelines, rose more than 3% after the market; IBM, which had lower than expected revenue for the first quarter, fell more than 8% after the market.
In terms of European stocks, the pan-European stock index, which surged on Tuesday, stopped two consecutive days. The European Stoxx 600 index closed down 0.43% to 505.61 points, falling to a close high since the April 8 report of 508.93 points, which rose nearly 1.1% on Tuesday. Since Tuesday's closing increase of 1.09% was the biggest closing increase since January 26, it is still likely to rise this week. Stock indexes of major European countries fell sharply. British stocks, which had been rising for five days, closed at record highs for two consecutive days. German, French and Western stocks, which had been rising for two days, and the Italian stock index, which rebounded on Tuesday, both fell.
Among various sectors, financial services led the decline by more than 1.9%, mainly due to the fact that the Dutch-listed fund distribution company Allfunds fell 11% after the media said they had abandoned negotiations on a possible sale. Furthermore, after executives expressed concerns about the Swiss government's stricter capital requirements plan, UBS fell 2.9%; the banking sector closed down nearly 1.1%. Among the constituent stocks, the Swedish commercial bank Handelsbanken, which had lower than expected net profit in the first quarter, plummeted 12.1%, and SEB, another Swedish bank whose interest income fell below expectations in the first quarter. 1.3%, thanks to which Dutch-listed wafer processing equipment supplier ASM International (ASMI), which raised its second-quarter revenue guidance, surged 11%.
The US dollar index hit a new low for nearly two weeks, then rose and fell below 155 for three days, hitting a new low since 1990, Bitcoin once fell below 64,000 US dollars
The ICE US Dollar Index (DXY), which tracks the exchange rate of the dollar against a basket of six major currencies including the euro, fell below 105.60 in early Asian trading, breaking the low level since April 12 for two consecutive days. The intraday decline was less than 0.1%. After the Asian market turned upward, US stocks reached a new daily high of 106.00 in early trading, rising nearly 0.3% during the midday session.
By the close of the US stock market on Wednesday, the US dollar index was above 105.80, up more than 0.1% during the day; the Bloomberg US Dollar Spot Index, which tracks the exchange rate of the US dollar against ten other currencies, rose more than 0.1% during the day and rebounded after falling back to the same low level since April 12 on Tuesday. US stocks rose more than 0.2% in early trading, then regained some of their gains.
Among non-US currencies, the yen hit a new low since 1990 in the intraday market on the 3rd. The dollar rose to a new low of 155.00 against the European stock market for the first time since June 1990, and then rose further. US stocks were close to 155.40 in the middle of the day, breaking the high level since 1990 for the third day, rising more than 0.3% during the day. US stocks closed above 153.30; EUR/USD rose above 071.10 in early Asian trading. European stocks fell below 1.8006 to set a new daily low. Trading hours are slightly below 1.0700 It remained roughly flat at Tuesday's level; GBP/USD turned higher against the US stock market. At noon, it reached a new daily high of 1.2470. US stocks hovered around the 1.2460 line at the close and rose 0.1% during the day, continuing to stay away from the low since November 2023, falling below 1.2300 on Monday.
The offshore renminbi (CNH) reached a new daily high of 7.2552 against the US dollar in the Asian market. The US stock market fell to 7.2738 in the midday session, breaking the low level since Tuesday, April 16, falling at 7.27 for the first time since last Tuesday. It fell 186 points from the daily high. At 4:59 Beijing time on April 25, the offshore renminbi was 7.2731 yuan against the US dollar, down 126 points from the end of Tuesday in New York.
Bitcoin (BTC) rose in the short term before the European stock market and reached a new daily high of 67,000 US dollars. Since the US stock market began to decline, US stocks fell below 65,000 US dollars in early trading, US stocks fell below 64,000 US dollars at the end of the session, and trading prices on some platforms fell below $63,900, down about 5% from the daily high, far from the high since April 13, when it rose above $67,200 on Tuesday. US stocks closed above $64,000 and fell more than 3% in the last 24 hours.
Demand for the 5-year US bond bid was poor, and the 10-year US bond yield rose for the first time this week
The yield on the US 10-year benchmark treasury bond fell 4.60% in early Asian trading to 4.5963%, then continued to rise. US stocks were close to 4.67% in early trading and began to approach the high level since November 13, 2023, which was refreshed by 4.70% last Tuesday. After the five-year US bond bid was completed, the yield for US stocks rose to 4.66% in midday trading. By the end of the bond market, it rose 4 basis points during the day, and rebounded after three consecutive days of decline.
The 2-year US bond yield, which is more sensitive to interest rate prospects, broke 4.91% in early Asian trading and fell by more than 2 basis points during the day. European stocks leveled off the decline after opening. European stocks rose 4.95% to a new daily high, rising about 2 basis points during the day. US stocks declined somewhat in the intraday market and failed to approach the high level since November 14, 2023, which was refreshed after rising above 5.0% on Monday. By the end of the bond market, it remained flat at the same time on Tuesday, stopping the two-day trend of falling.
Crude oil fell back and turned upward in the short term after the US EIA crude oil inventory was announced
International crude oil futures turned down intraday. When European stocks hit a new high before the market, US WTI crude oil rose above $83.70 and rose more than 0.4% during the day. Brent crude oil was close to $88.80 and rose nearly 0.4% during the day. European stocks basically maintained a decline after falling in early trading. US stocks turned short-term higher after the announcement of US EIA crude oil inventories. At a fresh low in midday trading, US oil fell below $82.50, down 1.1% during the day.
In the end, crude oil, which rebounded on Tuesday, fell back. WTI's June crude oil futures closed down $0.55, or 0.66%, to $82.81 per barrel; Brent crude oil futures for June closed down $0.40, or 0.45%, to $88.02 per barrel, and failed to break away from the closing low since March 27, which was refreshed on Monday.
US gasoline and natural gas futures had mixed ups and downs. NYMEX's May gasoline futures closed up about 0.3% to $2.7343 per gallon, rising for two consecutive days, continuing to break out of the low level since March 27, which had been falling for four days on Monday; NYMEX's May natural gas futures, which had been rising for two days, closed down 8.77% to 1.6530 US dollars/million British thermal units, falling to the high level since April 10, which was refreshed on Tuesday. The review said that the “normal season” weather after winter and before summer was mixed, and the natural gas market is expected to remain oversupplied. Recent weather data shows that demand for natural gas is low.
Luntong stopped two consecutive falls, and Lunxi hit a new one-week low, and gold fell three times in a row, and futures closed at a new low in nearly three weeks
London basic metals futures mostly rose on Wednesday. The rebound of Luntong and Lunzinc, which fell for two days in a row, did not continue to fall from the high levels since April 2022 and April last year, respectively, which were set last Friday. Lunaluminum, which stopped rising seven times in a row on Tuesday, rebounded slightly. As it fell more than 3% on Tuesday, it failed to approach the high since June 2022 set on Monday.
Meanwhile, Lun Ni, which fell more than 7% on Tuesday, continued to fall, hitting a new low in a week, but the decline slowed and closed down by about 0.3%; after four consecutive gains, Lunnickel fell for 2 consecutive days and continued to fall below its high level since September last year.
New York gold futures rose several times in the intraday period. European stocks were as low as $2324.8 in early trading, falling more than 0.7% during the day, and are still far from the intraday low since April 5, which fell below $2305 on Tuesday. After rising in early trading, US stocks reached a new high of 2350.9 dollars, rising nearly 0.4% during the day, and are still far from the intraday all-time high set close to $2,450 on April 12.
Final futures fell for three consecutive days. COMEX June gold futures closed down 0.16% to $2338.4 per ounce, breaking the closing low since April 4.
Spot gold fell to a new daily low below $2,312 in early trading. It fell more than 0.4% during the day. It did not come close to falling to the low level since April 5, which was refreshed below $2,292 on Tuesday. After rising in early trading, it rose to a new daily high above $2,337. It rose more than 0.6% during the day, gradually regaining gains in midday trading, and is still far from the historical intraday high set by rising above $2,430 last Friday.
At the close of the US stock market, spot gold was slightly below $2,320, falling more than 0.1% during the day. The decline on Tuesday and Wednesday was significantly mitigated from more than 2% on Monday.
New York futures, which turned higher in Tuesday's session, fell slightly. COMEX silver futures closed down 0.06% to 27.346 US dollars/ounce in May, and failed to continue to break out of the closing low since April 3, which was caused by a sharp drop of more than 5% on Monday.
Editor/Jeffy