In the early morning of the 16th Beijing time, US stocks maintained a downward trend at midday on Thursday. Investors are evaluating Morgan StanleyWait for the financial report. The data of first-time application for unemployment benefits in the United States set a new low during the epidemic. Federal Reserve Chairman Colin Powell continues to testify in Congress. A senior Fed official urged the central bank to reduce the size of its national debt.
The Dow fell 3.14 points, or 0.01%, to 34930.09; the Nasdaq fell 115.22 points, or 0.79%, to 14529.73; and the S & P 500 fell 15.90 points, or 0.36%, to 4358.40.
On Thursday morning, the yield on the 10-year Treasury note fell nearly 4 basis points to 1.317 per cent, to 1.317 per cent. The yield on the 30-year Treasury note fell nearly 5 basis points to 1.94 per cent.
Against the backdrop of a more moderate outlook for US economic growth and Powell's emphasis that inflationary pressures will eventually fall, US Treasury yields have fallen recently, with 10-year Treasury yields falling below 1.4 per cent.
Cyclical sectors such as energy and financial sectors that could benefit from the rebound in economic activity are once again lagging behind as investors return to technology and growth stocks.
On Thursday, Federal Reserve Chairman Colin Powell will testify before the Senate Banking Committee on the semi-annual monetary policy report. Despite disturbing levels of inflation, Powell defended his position of keeping policy loose for the second day in a row.
"the shock to the system is related to the economic restart and the inflation rate is well over 2 per cent, which of course we are uneasy about," he said. "
Powell called the current price rise a "unique" phenomenon in history and said the Fed was watching closely to see if its expectations of temporarily high inflation were correct and whether inflation was likely to last longer. "so we are trying to understand the basic situation and the risks," he said.
James Brad, president of the Federal Reserve Bank of St. Louis, said the Fed had achieved its goal of "substantial further progress" on inflation and employment, and urged policy makers to scale back their bond purchases.
Corporate earnings are still the focus of market attention. The results of the big banks that have reported results so far have been mixed. The banks' revenues and net interest income are also under pressure as Treasury yields fall back after hitting a year-on-year high in March.
The large companies that announced their results on Thursday included Morgan Stanley and Bank of New York Mellon., United Bank of AmericaAnd United Health.等。
Jason Ware, a partner at Albion Financial Group, said: "recently, banking stocks and the financial sector have been in the doldrums after a strong performance at the beginning of the year. And I think several things are happening. First of all, as the market begins to digest the so-called peak of growth, the factors driving banks and other sectors and the rotation of the plate have begun to weaken. "
"second, Treasury yields have fallen recently," he said. Of course, bank performance is closely related to changes in Treasury yields. "
On economic data Thursday, the Labor Department reported that the number of first-time claims for unemployment benefits in the United States fell to 360000 last week, the lowest during the Innovation Crown epidemic.
On Wednesday, the labor department reported that the u. S. producer price index surged 7.3% in June from a year earlier, an all-time high and well ahead of market expectations. This suggests that as raw material prices soar, US companies are under increasing pressure to pass on rising production costs to consumers.
In terms of global economic data, China's National Bureau of Statistics released China's economic data for the first half of the year on Thursday. According to preliminary calculations, the GDP in the first half of the year was 53.2167 trillion yuan, an increase of 12.7 percent over the same period last year at comparable prices, down 5.6 percentage points from the first quarter; the two-year average growth rate was 5.3 percent, and the two-year average growth rate was 0.3 percentage points faster than that in the first quarter. On a quarterly basis, the growth rate in the first quarter was 18.3% over the same period last year, with an average growth rate of 5.0% in two years; and 7.9% in the second quarter, with an average growth rate of 5.5% in two years.
The number of first-time applications for unemployment benefits in the United States last week fell to a new low during the COVID-19 epidemic.
The number of US first-time jobless claims fell to its lowest level since the COVID-19 outbreak last week, suggesting that unemployment is falling as the business environment improves and companies' willingness to hire picks up.
Initial claims for unemployment benefits fell by 26000 in the week ended July 10, according to data released by the Labor Department on Thursday. The median estimate by economists is 350000. The figure is in line with a broad recovery in the US economy, a return to full use of capacity by companies, and a surge in demand for travel and leisure.
Nevertheless, the number of first-time jobless claims is still higher than before the outbreak, and employers' recruitment difficulties continue, which could hinder the pace of labour market recovery.
"Labor market conditions continue to improve, but there is still a long way to go," Federal Reserve Chairman Colin Powell told the House Financial Services Committee on Wednesday. "as public health continues to improve and other epidemic-related factors currently under pressure subside, job growth should be strong in the coming months."
More than half of US governors have announced plans to end early amid an ongoing debate over whether replenishing federal unemployment benefits will dampen job growth.
The number of continued jobless claims fell to 3.24 million in the week ended July 3. This may reflect the fact that more and more Americans are looking for jobs and no longer applying for benefits as a result of the end of the $300-a-week supplement in many states.
Federal Reserve Brad urges launch reduction, saying employment and inflation targets have been met
James Brad, president of the St. Louis Fed, said the Fed had achieved its goal of making "substantial further progress" on inflation and employment, urging policy makers to scale back bond purchases.
"I think the current situation can be reduced," Brad said in an interview on Thursday. "We don't want to disrupt the market or anything, but I think it's time to put an end to these emergency measures."
Federal Reserve Chairman Colin Powell said Wednesday that the U.S. economic recovery is not enough to begin to scale back bond purchases. He will testify before the Senate Banking Committee on Thursday.
"I think we have made substantial progress in the labour market," Brad said. "
As to whether the code should be reduced in the fourth quarter, he replied that "the committee will seriously discuss this issue at its July meeting."
Brad said: "the epidemic has been very controlled." There are bottlenecks and shortages everywhere. "
Brad will have the right to vote on monetary policy in 2022. He is sometimes seen as a bellwether for the Federal Open Market Committee (FOMC). During the recession of 2007-2009, he was the first to propose a second round of asset purchases, which was eventually adopted by FOMC.
Brad noted that even if FOMC agrees to underwrite, there are still a number of issues that need to be discussed, including when to start the process, whether to reduce purchases of mortgage-backed securities (MBS) instead of Treasuries first, the speed of contraction, and the possibility of adjusting the rate of contraction depending on the data.
He expects rapid progress in employment, and although the new mutated strain is seen as a risk, it will not change the prospect of a continued decline in the number of new COVID-19 deaths.
Brad said that after the start of code reduction, FOMC needs to be prepared to speed up code reduction if necessary. He also said that for now, indicators of market inflation expectations show investors' confidence in the Fed.
"in this case, you may not want to use autopilot mode," Brad said. We are not sure how inflation will develop. For a possible inflation shock, we need to have some options for the upward direction. "
Focus stocks
Morgan Stanley Q2 has revenue of $14.8 billion and market expectations of $13.961 billion, compared with $13.414 billion in the same period last year; net profit of $3.408 billion, market expectations of $2.979 billion and $3.047 billion in the same period last year; earnings per share of $1.85 and market expectations of $1.63, compared with $1.96 in the same period last year.
United Health Q2 has revenue of $71.32 billion, market expectations of $69.445 billion, compared with $62.138 billion for the same period last year; net income of $4.266 billion, market expectations of $4.025 billion, compared with $6.637 billion for the same period last year; earnings per share of $4.46, market expectations of $4.21, compared with $6.91 for the same period last year; adjusted earnings per share of $4.70, market expectations of $4.43.
Bank of New York Mellon Q2 has revenue of $4 billion and market expectations of $3.875 billion, compared with $4.01 billion in the same period last year; net profit of $991 million, market expectations of $884 million and $901 million in the same period last year; earnings per share of $1.13 and market expectations of $1.01 in the same period last year.
United Bank of America Q2 revenue of $5.783 billion, market expectations of $5.623 billion, compared with $5.838 billion in the same period last year; net profit of $1.914 billion, market expectations of $1.693 billion, and $614 million in the same period last year; earnings per share of $1.28 and market expectations of $1.14, compared with $0.41 in the same period last year.
DaimlerQ2 results exceeded expectations. Mercedes-Benz maker Daimler's adjusted profit before interest and tax (EBIT) in the second quarter of this year was 5.42 billion euros, higher than the expected 4.3 billion euros, of which the car and truck division revenue growth was stronger than analysts' expectations. However, the chip shortage has affected the company's car sales to some extent and is likely to continue to affect sales in the next two quarters.
According to foreign media reports, TeslaSales of the long-lasting version of the dual-motor Model Y are booming in North America, and although the third quarter has only just begun, delivery of the model in the United States and Canada is scheduled for October 2021, the first month of the fourth quarter, according to the company's website. This means that in less than half a month at the beginning of the new quarter, according to Tesla's production plan, the long-lasting version of Model Y has been sold out.
Game station, AMC Cinema, BlackBerry, NokiaAnd so on, the hot concept stocks of WSB have been paid attention to. Edward Woo, an analyst at brokerage Ascendiant, raised the target price of PlayStation to $25 from $10 and maintained a "sell" rating.
Taiwan Semiconductor ManufacturingThe company's second-quarter net profit and gross profit margin fell short of expectations, and supply shortages are expected to continue into next year.
NetflixIt said today that it will launch game content on the streaming platform.
Biopharmaceutical company Lipocin announced a settlement and license with Clarus Therapeutics to resolve all outstanding intellectual property disputes.
Digital cinema company Cinedigm's revenue from streaming channels increased by 19.7% in the fourth quarter.