In the early morning of the 14th Beijing time, U. S. stocks were basically flat late Friday. Investors are weighing mixed economic data and earnings, and are watching the rapid spread of the newly crowned delta strain.
The Dow fell 6.97 points, or 0.02%, to 35492.88; the Nasdaq fell 10.48 points, or 0.07%, to 14805.78; and the S & P 500 rose 2.40 points, or 0.05%, to 4463.23.
On Friday morning, the Dow rose as high as 35610.57 and the S & P rose to 4468.37, the highest in intraday and closing history.
Recently, major stock indexes have hit record highs several times, leading traders to wonder: what could be the catalyst to get US stocks off the upward track? The s & p 500 has not seen a correction greater than 5% since October. The index has risen nearly 19 per cent so far this year.
Nevertheless, some equity strategists believe that the path of least resistance for U. S. stocks in the future is still upward.
"We have seen the market show incredible resilience and continue to hit new highs," said Capital Wealth Planning founder and CEO Kevin Simpson. I expect some fluctuations-but I don't know what the catalyst will be. The Doerte mutant is the most obvious one we are facing directly at present. If we see a 10% correction in US stocks, which I think is unlikely, I will go all out to buy it. "
Corporate earnings are still getting attention. Of the companies in the s & p 500 that have reported results, 86 per cent beat analysts' expectations.
Walt Disney Company, a constituent stock of the DowThe latest quarterly revenue and earnings exceeded expectations, and the growth of its closely watched Disney+ streaming platform was stronger than expected. The company's quarterly results beat market expectations, the new streaming fee-paying business was better than expected, and the theme park business in the United States returned to profitability.
Airbnb, a house rental companySales revenue and profits in the second quarter exceeded expectations as the food distribution business remained stable, the report said. But the company warned that the Delta variant would continue to put pressure on the tourism industry and that housing orders were expected to decline this quarter.
Although there are some fluctuations in the economic data released this week, they are generally on the rise. Initial claims for unemployment benefits fell for the third consecutive week last week, the Labor Department reported on Thursday. The consumer price index (CPI) data released on Wednesday were in line with expectations, but Thursday's producer price index (PPI) was higher than expected. The PPI index rose 7.8% from a year earlier, the highest level in more than a decade.
In addition to the mixed data in the United States, investors continue to worry about the accelerated spread of the highly contagious novel coronavirus Delta strain.
"after worrying about rising inflation for some time, the market seems to have got used to it," said HSBC's chief investment officer. The market is now more concerned about the development of the COVID-19 epidemic, especially the spread of Delta mutant strains. "
Marc Chandler, chief market strategist at Bannockburn Global Forex, said: "in the United States, the spread of the new Guandalta variant is accelerating, and the number of infections in some states is reaching record levels. This is a global phenomenon, and countries that seem to be doing a good job in dealing with this problem are now being ravaged by this virus. "
After the release of PPI data in the United States on Thursday, the market remained as hesitant as ever. Market participants seem to be looking for a key catalyst for the next step, but so far they have not found it, which makes the situation quite difficult.
Tom Graff, head of fixed benefits at Brown Advisory, said: "I think the inflation data we are seeing so far mainly reflect the temporary situation and they will calm down on their own. But I do think that even if the specific effects of these COVID-19 outbreaks disappear, there will still be inflationary pressures beyond the Fed's comfort zone. "
"I think they will be able to control inflation and I think they will phase out quantitative easing (QE) from the fourth quarter and probably start raising interest rates in late 2022 or early 2023," he said. Then the question becomes, 'how many times do you need to raise interest rates?' , 'how high do interest rates need to rise before inflation can be brought under control again?' "
Some investors believe the Fed could signal a reduction in bond purchases as early as a meeting of central bank governors in Jackson Hole, Wyoming, on Aug. 26-28, although many others expect the Fed to take a slower approach.
Jeff Gundlach, the billionaire investor, also sounded the inflation alarm this week, warning that US prices were rising at a disturbing pace and that official estimates underestimated the rate of rise.
The Federal Reserve will release the minutes of its July 27-28 monetary policy meeting next Wednesday. Job growth in the United States hit its highest level in nearly a year in July, prompting some policy makers to talk high-profile about the early start of reducing the size of bond purchases. But not all policymakers agree that the minutes of the latest meeting are likely to reflect divisions within the Federal Open Market Committee (FOMC) over reducing the duration of bond purchases.
Focus stocks
Moderna Inc and Pfizer IncAnd other vaccine manufacturers are getting attention. On Thursday night, the US Food and Drug Administration (FDA) authorized booster injections of coronavirus vaccines for people with low immune function, highlighting that novel coronavirus still poses a risk to some vaccinated Americans, aiming to protect some of the most vulnerable from the highly contagious Delta strain.
In addition, the Mayo Clinic, an authoritative medical institution in the United States, believes that the effect of Moderna Inc and COVID-19 vaccine in preventing Delta virus infection is far stronger than that of Pfizer Inc. Research from the Mayo Clinic found that in July, in Florida, where the Delta strain was endemic, people who received the Pfizer Inc vaccine had a 60 per cent higher risk of contracting COVID-19 than those who received the Moderna Inc vaccine. A similar situation occurred in Minnesota, where data last month showed that the effectiveness of Moderna Inc vaccine in preventing infection with COVID-19 was 76%, while that of Pfizer Inc vaccine was only 42%.
According to reports, Boeing Co737MAX may be allowed to fly again in India in the next few days. If it is finally approved, it means that 737MAX's resumption of flights around the world will remove another obstacle.
The delivery of Ford electric pickup trucks has also been delayed due to a shortage of chips. Ford recently revealed that the company's electric car Mustang-E and some Bronco SUV will delay delivery to customers due to chip shortages.
AmazonEO Charging, a British electric vehicle charging company, is set to list on SPAC in the US, valuing it at nearly $700m.
Walt Disney Company's subscriber growth, revenue and profit exceeded market expectations in the third quarter.
Airbnb's revenue in the second quarter was $1.335 billion, an increase of 299% compared with $335 million in the same period last year, and 284% year-on-year growth excluding exchange rate changes. The net loss was $68.2 million, compared with a net loss of $576 million in the same period last year, sharply narrowing year-on-year.
Airbnb Company is vigilant about the impact of COVID-19 mutant strains and is expected to be unable to continue the growth trend of performance in the second quarter under the impact of the spread of the virus.
DoorDashThe net loss in the second quarter exceeded expectations, and the number of new user registrations is expected to decline in the third quarter.
Credit SuisseDowngrade Virgin GalaxyThe stock rating and target price.
Rocket Companies's third-quarter earnings guidance was better than the market expected.
SOFI maintained its financial guidance, which fell short of market expectations.