①S&P and Nasdaq fell for two consecutive days, while the Dow rose slightly by 0.09%; ②Most large-cap tech stocks closed lower, with Amazon down 1.66%; ③Berkshire Hathaway Class B shares continued to reach new historical highs; ④United States Steel: If not acquired, thousands of positions are at risk.
Caixin Media News on September 5th (Editor: Zhao Hao) U.S. stocks fluctuated narrowly on Wednesday (September 4th), with the three major indices closing mixed, and the S&P and Nasdaq falling for two consecutive days.
At the close, the Dow Jones Industrial Average rose by 0.09% to 40,974.97 points; the S&P 500 Index fell by 0.16% to 5,520.07 points; the Nasdaq Composite Index fell by 0.30% to 17,084.30 points. On the previous trading day, all three indices experienced their largest single-day decline since August 6th.
Truist's Co-Chief Investment Officer Keith Lerner said, "Following yesterday's sell-off, you will see a slight reduction in yields, and investors are a bit nervous, leading to a day of low confidence in today's trading. Everyone is waiting for the employment report on Friday, and we are also in a wait-and-see mode."
Early in the morning, data released by the Labor Statistics Bureau showed that the number of job vacancies in the United States at the end of July was 7.673 million, significantly lower than the market's expected 8.1 million. This figure reflects a softening U.S. job market, with an increased possibility of recession.
In the mid-session, the Federal Reserve's 'Beige Book' stated that only 3 out of 12 regions reported slight economic growth, while regions with stagnant or declining economic activity increased from 5 in July to a recent 9.
It is also worth noting that the weakness in the U.S. stock market may be due to 'seasonal factors.' Since 1950, September has been the worst performing month on average out of the 12 months for U.S. stocks. Many are expecting that during this traditional weak period, U.S. stocks will retract by 5% or more.
However, Sid Vaidya, Chief Investment Strategist of the company, remains optimistic and believes that the recent pullback should not deter investors. From our perspective, this is normal short-term volatility. We will not change any positions based on the past day and a half.
Popular stocks performance
Most large-cap tech stocks closed lower, with Apple down 0.86%, Microsoft down 0.13%, Google down 0.50%, Amazon down 1.66%, Meta Platforms up 0.19%, and Tesla up 4.18%.
Earlier, there were reports that the US Department of Justice had issued a subpoena to Nvidia for an antitrust investigation, causing the stock to continue to weaken. After a 9.53% plunge yesterday, it fell another 1.66% today, resulting in a cumulative decline of 11.02% over the two days. However, the latest news indicates that Nvidia has stated that it has not received a subpoena from the Department of Justice.
Berkshire Hathaway Class B shares continue to reach new historical highs.
The PHLX Semiconductor Index rose 0.25%. Among the components, AMD (Advanced Micro Devices), one of Nvidia's main competitors, rose 2.87%, and Wolfspeed rose 4.58%; Intel fell 3.33%, and ASML Holding fell 4.01%.
In the China concept stocks sector, the Nasdaq Golden Dragon China Index fell 0.07% to 5,556.18 points.
China concept stocks have mixed performance, with Bilibili up 2.87%, NIO Inc up 2.17%, Tencent Music up 1.06%, XPeng up 0.72%, jd.com up 0.49%, and Alibaba up 0.24%; New Oriental down 0.60%, Li Auto Inc down 1.21%, Baidu down 1.23%, Tal Education down 1.25%, and PDD Holdings down 5.12%.
Company news
Nvidia stated that it has not received a subpoena from the Department of Justice in the United States, which has been accused of facing an antitrust investigation. Previously, it was reported that the Department of Justice had issued subpoenas to the chipmaker and other companies in collecting evidence of antitrust violations. "Nvidia wins with strength, which is reflected in our benchmark performance and value to customers, and customers can choose the solutions that best suit them," the company said in a statement, adding, "We have asked the Department of Justice about it and have not received a subpoena. Nevertheless, we are more than willing to answer any questions from regulators about our business."
Nvidia stated that it has not been subpoenaed by the Department of Justice in the United States, and earlier reports have stated that the Department of Justice, in gathering evidence of antitrust violations, has issued subpoenas to the chipmaker and other companies. "Nvidia wins with strength, which is reflected in our benchmark performance and value to customers, and customers can choose the solutions that best suit them," the company said in a statement, adding, "We have asked the Department of Justice and have not received a subpoena. Nevertheless, we are more than willing to answer any questions from regulators about our business."
United States Steel warns that if it cannot be acquired by Japan's Nippon Steel, thousands of jobs will be at risk. The company also states that its headquarters in Pittsburgh will be affected. United States Steel stated in a press release that without the support of the Japanese steel producer, it would have to give up its traditional blast furnace operation, which would weaken union employment and reduce the competitiveness of the United States steel industry. Earlier, U.S. media cited sources familiar with the matter revealing that U.S. President Biden is preparing to block Nippon Steel's acquisition of United States Steel.
United States Steel warns that if the acquisition by Japan's Nippon Steel is blocked, thousands of jobs could be at risk. The company also states that its headquarters in Pittsburgh would be affected. United States Steel said in a press release that without the support of the Japanese steel producer, it would have to give up its traditional blast furnace operations, which would weaken union employment and decrease the competitiveness of the U.S. steel industry. Earlier, U.S. media reported that President Biden is preparing to block Nippon Steel's acquisition of United States Steel.
A Boeing plane made an emergency landing at Moscow's Sheremetyevo Airport due to an engine failure.
A Boeing 787 aircraft flying from India to the United Kingdom made an emergency landing at Sheremetyevo Airport in Moscow, Russia, due to an engine failure. Preliminary information indicates that no one was injured.
【Hewlett Packard Enterprise Raises Full-Year Adjusted EPS Outlook】
Hewlett Packard Enterprise (HPE) reported adjusted EPS of $0.50 for the third quarter, beating analysts' expectations of $0.47. The third-quarter net revenue was $7.71 billion, in line with analysts' expectations of $7.66 billion. The third-quarter server business revenue was $4.28 billion, slightly lower than analysts' expectations of $4.29 billion. The forecast for the fourth quarter is an adjusted EPS of $0.52-$0.57, with analysts expecting $0.54. The full-year adjusted EPS is expected to be $1.92-$1.97, previously estimated at $1.85-$1.95.
【C3.ai Falls Short of First-Quarter Subscription Revenue Expectations】
Artificial intelligence software provider C3.ai reported a loss of $0.05 per share for the first quarter, better than analysts' expected loss of $0.13 per share. The first-quarter revenue was $87.2 million, in line with expectations. The first-quarter subscription revenue was $73.5 million, a 20% increase compared to the previous year, but fell short of analysts' expectations of $79.1 million. The forecast for the second quarter is a revenue of $88.60-$93.6 million, with analysts expecting $91.3 million. The full-year revenue is expected to be $0.37-$0.395 billion, with analysts expecting $0.3839 billion.