Review of the market this week

The gains of the three major indexes of U. S. stocks continued to expand this week after last week, with the Dow and the S & P 500 up for three days in a row, closing at record highs on Friday.This week$S & P 500 (.SPX.US) $Up 2.71%$Dow (.DJI.US) $Up 1.95%, while the global technology weather vane$Nasdaq Composite Index (.IXIC.US) $Up 3.12%.

Despite signs of recovery in the job marketBut the number of first-time claims for unemployment benefits rose faster than expected last week.

The Labor Department reported on Thursday that the total number of people applying for unemployment benefits for the first time last week was 744000, well above economists' expectations of 694000 and an increase of 16000 from the previous week's historical data.

Review of market hotspots

1. Us PPI hit a 10-year high in March, much higher than expected

Data released by the U.S. Department of Labor on April 9th showPPI in the United States rose 4.2% in March from a year earlier, exceeding market expectations by 3.8% and surpassing the previous value by 2.8%. It rose for the 11th consecutive month and reached the highest level since 2011.. The data suggest that inflationary pressures are on the rise as the US economy emerges from the effects of the epidemic.

two。 Powell expects prices to rise this year, insisting that this will not lead to inflation

Us Eastern time on Thursday, Federal Reserve Chairman Powell said at the IMF seminar that as the US economy reopened, spending surged and supply was tight.It may push up prices this year, but it will not lead to repeated price increases and inflation.

We think that there will be upward pressure on prices, and it may also affect consumers in the form of price increases, but this will be temporary. Inflation has been low for 25 years, fuelling expectations of low inflation.

The Fed should not even discuss policy changes while the US is still recovering from the crisis, but it will still carefully monitor inflation expectations. The Fed has the tools to curb excessive inflation, and the traditional way to deal with inflation is to raise interest rates.

-Powell

3. Wall Street investment bank Fundstrat:4 may have a strong start to the stock market for the whole month, ushering in a "face-to-face rebound"

Tom Lee, co-founder of Fundstrat Global Advisors, a US stock investment research firm, said on Monday that he expected the stock market to have a strong start to April throughout the month as part of what he had previously called a "face-to-face rebound".

Institutions have raised nearly $200 billion in cash since the start of the year and are now sitting on $3,000bn in cash, with the institutional cash balance increasing by 9 per cent. In addition, retail investors have $1.5 trillion in cash.

Since last Wednesday, the market has experienced three consecutive days of strong rebound. In an environment where institutions are sitting on so much cash and investors have a lot of uncertainty about the market, if S & P rebounds strongly this month, we may see ordinary individual investors scramble to push the stock market to this year's high in April.

-Tom Lee, co-founder of Fundstrat Global Advisors

4. The Biden government plans to raise the tax rate to 28%, and the tax reform policy faces a lot of resistance.

On April 7, the Biden government announced its tax reform plan.Raise the corporate income tax rate to 28%, and plan to raise $2.5 trillion within 15 years to build infrastructure.. Biden called on American companies to bear most of the cost of their infrastructure plans, but said he was willing to negotiate with companies on the issue.

At present, the tax reform plan has been strongly opposed by Republicans, American giants and even some Democrats, and the proposal must be approved by Congress before it can be implemented.Most expect the White House and US companies to eventually reach a compromise on a 25 per cent corporate tax rate, according to Reuters.

5. Biden announces annual budget proposal of $1.5 trillion for the first fiscal year 2022

April 9 local timeU.S. president Joe Biden has unveiled an outline of the first annual budget proposal for fiscal year 2022, worth $1.5 trillion.Of this total, the non-defense budget of $796 billion is a significant increase of 16 per cent over 2021, accounting for about 3.3 per cent of US GDP. Officials say this is about the historical average of the United States over the past 30 years.

Review of hot spots in the company

1. Us technology stocks continued to rise, with Alphabet Inc-CL C rising more than 29% this year.

Among the core assets this week, US technology stocks collectively rose sharply, but$Tencent (00700.HK) $$BABA (BABA.US) $$Taiwan Semiconductor Manufacturing Co Ltd (TSM.US) $It fell this week.

two。 BABA Group was fined 18.228 billion yuan for violating the anti-monopoly law.

April 10, 2021The General Administration of Market Supervision$BABA (BABA.US) $The fine is 18.228 billion yuan, which is equivalent to 4% of the company's sales in China in 2019.

In December 2020, the General Administration of Market Supervision filed a case against BABA Group in accordance with the Anti-monopoly Law. According to the investigation, since 2015, BABA Group has abused its dominant position in the market and implemented.Choose one of the twoThe behavior excludes and restricts the competition in the online retail platform service market in China.

BABA has made a formal response: "Today, we have received a 'decision on Administrative punishment' from the State Administration of Market Supervision and Administration, and we sincerely accept and resolutely obey this punishment. We will strengthen operation in accordance with the law, further strengthen the construction of the compliance system, be based on innovation and development, and better fulfill our social responsibilities. "

3. Wedbush: Biden's electric car policy is good for Tesla, Inc., and analysts upgrade their rating to "outperform the market".

Wedbush analyst Dan Ives will$Tesla, Inc. (TSLA.US) $Was upgraded to "outperform the market" with a target price of $1000, while in a bull market scenario, Ives set a target price of $1300 for Tesla, Inc..

This is mainly because the Biden administration recently laid out a plan to spend nearly $200 billion over eight years to support the booming electric vehicle industry. There are rumors that the US government intends to expand tax breaks for consumers, which will give a big boost to the sales of Tesla, Inc. and his competitors.

4. Reuters: DiDi Global Inc. plans to list in the United States and plans to submit listing documents secretly this month

DiDi Global Inc. chose Goldman Sachs Group and Morgan Stanley to be responsible for their IPO trip to the United States, and plans to submit listing documents secretly this month. People familiar with the matter saidWith the support of Asian technology investment giants Softbank Corp., BABA and Tencent, DiDi Global Inc. hopes to go public as early as July。

According to the latest report last month, its initial public offering (IPO) was valued at at least $100 billion. According to that valuation, DiDi Global Inc. could raise about $10 billion by selling his 10% stake.This is the largest Chinese IPO since BABA's $25 billion IPO in 2014.

5. It is reported that Apple Inc has booked Taiwan Semiconductor Manufacturing Co Ltd's 4nm process capacity, and the first product is expected to be a Mac chip.

There are reports that$Apple Inc (AAPL.US) $Booked$Taiwan Semiconductor Manufacturing Co Ltd (TSM.US) $The capacity of the 4nm process may not be used to produce chips used in smartphones, and the first product is expected to be the Mac chip.Although Taiwan Semiconductor Manufacturing Co Ltd CEO Wei Zhijia previously revealed that Taiwan Semiconductor Manufacturing Co Ltd's 4nm process planned to be mass produced in 2022, media reported last month that Taiwan Semiconductor Manufacturing Co Ltd's process would be mass produced in the fourth quarter of this year, earlier than their planned mass production time.

Hot spots next week

The following are the US stock companies and key IPO that will release their results next week (April 12-April 16):

• The collective attack on the financial report of bank stocks next week.$JPMorgan Chase & Co (JPM.US) $$Goldman Sachs Group (GS.US) $$Wells Fargo & Co (WFC.US) $$.C (01054.HK) $$Blackrock (BLK.US) $$Morgan Stanley (MS.US) $$Ally Financial Inc. (ALLY.US) $$Taiwan Semiconductor Manufacturing Co Ltd (TSM.US) $$PepsiCo Inc (PEP.US) $And other companies will release financial reports one after another.

The following are important data and events for next week's trading day (April 12-April 16):

• Powell, chairman of the Federal Reserve, will speak at the Washington Economic Club next Thursday, and Daley, chairman of the FOMC and San Francisco Fed in 2021, will speak on financial stability and monetary policy next Friday.