Review of the market this week
Global stock markets are under pressure this week, with the three major US stock indexes closing down collectively, and concerns such as repeated outbreaks, regulatory risks and different corporate prospects have dampened trading sentiment in the market.
$S & P 500 (.SPX.US) $It closed down 0.37% this week, but still closed up 2.27% in July, up 17.02% for the year.
$Dow Jones Index (.DJI.US) $It closed down 0.36% this week, up 1.25% in July and 14.14% for the year.
$Nasdaq Composite Index (.IXIC.US) $It closed down 1.11% this week, up 1.16% in July and 13.85% for the year.
U. S. initial applications fell slightly last week, but still higher than expected, according to data released by the Labor Department on Thursday. The number of first-time jobless claims in the week of 24 July was 400000, compared with an expected 385000, compared with a previous value of 419000.
The US Commerce Department reported that US consumer spending on goods and services rose 1 per cent in June from a month earlier; the May data was revised down to 0.1 per cent month-on-month. The report showed that US personal spending rose in June and inflation indicators continued to climb.
In the United States, the initial annualized rate of GDP in the second quarter was 6.5%, with an estimated annual rate of 8.5%, compared with the previous value of 6.4%.
Economic data vary, said Sebastian Mackay, an asset fund manager at Invesco. "there are too many trends affecting the market.We have entered a more volatile period, but the market will continue to rise because we are still witnessing economic growth.」
Review of hot spots in the market
1. The United States prohibits Chinese enterprises from listing in the United States. Chairman of SEC: no, but it is necessary to increase the disclosure of information.
Gary Gensler, chairman of the Securities and Exchange Commission (SEC), issued a statement on Friday local time: as China has recently strengthened the supervision of companies listed in the United States, Chinese companies listed in the United States in the future must further strengthen information disclosure and disclose related risks.
2. Powell: no decision has been made on subtracted QE
On Wednesday, July 28th, Federal Reserve Chairman Colin Powell attended a press conference after the release of the FOMC monetary policy decision.
He acknowledged that the epidemic continues to pose a risk, the economy is still far from a full recovery, inflation is temporarily higher, so there should be no rush to tighten monetary policy. He also said that the Fed has not yet made a decision on when and how to reduce the QE.
Related readings:How to understand the Fed's "confidence"?
900 billion US dollars for half a year! Record money poured into US funds
According to data compiled by Refinitiv Lipper, net inflows into US public funds and exchange traded funds (ETF) in the first half of this yearMore than 900 billion US dollars, a new record since 1992And more than global investors invested in other regional funds in the first two quarters of 2021 combined.
Some analysts are starting to warn that bets on US economic growth could disappoint investors.On the one hand, the S & P 500 stock index is close to its highest level since 2000, and on the other hand, with the resurgence of the epidemic, concerns about the peak of the US economic recovery are also growing.
4. The survey shows that more large American investors are bullish on US stocks, and technology stocks are still the preferred target.
A survey shows that the proportion of large US households bullish on the performance of US stocks in the third quarter has further increased, and more and more large households believe that the US economic recovery is strong and are optimistic about the opportunities for the technology industry. The survey shows thatBig investors in the United States still rated technology companies as the best investments in the third quarter.
A recent survey by E-Trade Financial, owned by Morgan Stanley, shows that stockbroking accounts are among independent high net worth clients in the United States of $1 million or more.The proportion of bullish investors rose 7 percentage points from the second quarter, from 58% to 65%.Only 6% of respondents said the market would fall by 10% or more in the third quarter.
5. Us Q2 GDP growth rate of 6.5% was lower than expected, and core inflation hit a record high.
The initial annual rate of Q2 GDP in the United States is 6.5%, the estimated annual rate is 8.5%, and the previous value is 6.4%.
The initial annualized quarterly rate of the US core PCE price index in the second quarter was 6.2 per cent, the highest since the third quarter of 1983 and is expected to be 5.9 per cent.
U.S. economic growth barely accelerated in the second quarter, weaker than expected, as government spending, housing investment and inventories dragged down growth, economists said. However, a surge in vaccine-driven consumer spending pushed total output to a record high.
Review of company hotspots
1. Technology stocks are under collective pressure this week, with Amazon and Tencent leading the decline in core assets.
This week, the stock market was under pressure, technology stocks were weak, the Nasdaq fell more than 1%, and FAANG, the top five tech giants in the United States, fell collectively.
Among them, the global e-commerce giant$AMZN.US (Amazon) $Share prices fell after the results, down 9% this week. Year-on-year growth in revenue and EPS was significantly lower than in the previous quarter, and it was the first time in 11 quarters that earnings had fallen short of market expectations.
2. Amazon Q2's financial results and guidance for the next quarter are not good, and a number of big banks have lowered their target prices.
$AMZN.US (Amazon) $Net sales of total products and services in the second quarter were $113.08 billion, up 27.2% from a year earlier, below market expectations of $115.1 billion or 29%. The company's official guidance was between $110 billion and $116 billion.
EPS earned $15.12 a share in the quarter, up nearly 47% from a year earlier and above market expectations of $12.30. But operating profit was $7.7 billion, up nearly 33% from a year earlier, below market expectations of $7.82 billion, and the company's official guidelines were $4.5 billion to $8 billion.
At the same time, the company's guidance for the third quarter is not ideal.Net sales are expected to be between $106 billion and $112 billion, well below Wall Street consensus expectations of $119.2 billion.
Mizuho lowered Amazon's target price to $4100 from $4400; investment bank Benchmark lowered its target price to $4200 from $4400; Atlantic Securities lowered its target price to $3800 from $4000; Credit Suisse lowered its target price to $4700 from $4850; and JPMorgan lowered its target price to $4100 from $4600.
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3. Apple Q3's net profit nearly doubled compared with the same period last year, and many big banks are optimistic about Apple.
$AAPL.US (Apple) $According to the latest financial report, revenue rose 36% to $81.41 billion, while net profit rose 93% year-on-year to $21.74 billion.Both set new records for the third quarter of the calendar year.
Apple's revenue in Greater China grew 58 per cent to $14.76 billion in the third quarter, leading the region. Service revenue hit a record high of $17.5 billion.
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4. Google's Q2 advertising revenue grew strongly, and its net profit increased by 166% compared with the same period last year.
Google parent company$Google (GOOG.US) $The latest financial report shows
Alphabet achieved revenue of US $61.88 billion in the second quarter, an increase of 62% over the same period last year and higher than the market expectation of US $56.16 billion.
Net profit under the GAAP caliber was $18.525 billion, up 166% year-on-year. EPS was $27.26, nearly 2.70 times the $10.13 in the same period last year, and higher than the market expectation of $19.35.
Total advertising revenue was $50.444 billion, up 69 per cent from a year earlier.
Benefiting from the advertising boom, Google shares have performed well this year, rising 54% during the year, leading to gains in core u.s. assets.
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TMT Daily | Apple, Microsoft, Google AMD quarterly report is strong
5. Tesla Q2: revenue increased by 98% over the same period last year, making a profit for eight consecutive quarters.
$Tesla (TSLA.US) $The second quarterly report was released after U. S. stocks opened on Monday, making a profit for the eighth consecutive quarter.
Revenue was $11.96 billion, compared with $6.036 billion in the same period last year, up 98% from the same period last year.
The gross profit margin of the whole vehicle was 28.4%, compared with 25.4% in the same period last year.
Net profit was $1.142 billion, compared with $104 million in the same period last year
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The prospect of hot spots next week
The following are the US stock companies that will release their results next week (August 2-August 6):
Important companies that release results next week:$NXP (NXPI.US) $、On Semiconductor (ON.US) $、$Take-Two Interactive Software (TTWO.US) $、$Alibaba Group Holding Ltd (BABA.US) $、$Activision Blizzard (ATVI.US) $、$MATCH GROUP (MTCH.US) $、$Roku (ROKU.US) $、$Square (SQ.US) $、$Moderna (MRNA.US) $、$Virgin Galactic (SPCE.US) $And other companies will release financial reports one after another.
Next week, IPO's key companies:$WCG Clinical, Inc. (WCGC.US) $、$Weber Inc. (WEBR.US) $等。
The following is the trading day of next week（August 2-August 6）Important data and events:
Important economic data will be released next week: the number of ADP jobs in the United States in July (10,000), the unemployment rate in July, the monthly rate of wholesale sales in the United States in June, and so on, which are important indicators for observing the economic situation.
These are all the contents of this issue of US Stock Weekly. Thank you for reading and sharing. We will see you next week. If you have any suggestions, you are welcome to leave a message in the comments section.