Dow Jones Rose More than 170 Points
As Tuesday (6th), due to the participation of some investors in the US mid-term elections, the US stock market trading volume was light, investors are more cautious, and hope that the results of the election will bring some relief to the long-term uncertainty of the stock market.
.The Dow Jones index rose nearly 176 points, with IBM and pioneering heavy industry leading the gains; the S&P 500 index was up 0.6%, as industrial and materials stocks outperformed the broader market; the Nasdaq index rose 0.6%.
Technology stocks rose, Apple (AAPL-US) rose 1.08%; Amazon (AMZN-US) rose 0.92%; Alphabet (GOOGL-US) rose 1.31%; Microsoft (MSFT-US) rose 0.20%; Facebook (FB-US) ) rose 0.85%.
Recently, the second headquarters of Amazon will be settled to meet the needs of a large number of talents. In addition, for the holiday shopping season, Amazon announced that Christmas shopping online shopping will provide unlimited free shipping all-American goods to stimulate buying.
Semiconductor stocks were mixed; AMD (AMD-US) rose 3.92%; Micron (MU-US) fell 0.30%; Nvidia (NVDA-US) fell 0.34%; Intel (INTC-US) fell 0.88%; IBM (IBM -US) rose by 2.55%.
On Tuesday, chip maker AMD announced at the Next Horizon new product launch that Amazon’s cloud service AWS will use its AMD EPYC processor, and AMD (AMD-US) shares are 8% higher.
According to Mark Papermaster, AMD’s chief technology officer, the technology is equivalent to Intel’s announced 10 nanometer process, but AMD EPYC will enter the market first.
Starbucks (SBUX-US) announced its latest earnings report last week. Revenue and same-store sales were better than expected. The stock price was up. The company rose 2.37% to 66.01 US dollars per share on Tuesday, close to the 52-week high of 66.08.
China Stock Exchange (BAT) was mixed; Tencent ADR (TCEHY-US) fell 1.11%; Baidu ADR (BIDU-US) rose 0.97%; Alibaba ADR (BABA-US) rose 1.85%.
Taiwan ADR only eclipse, ASE (ASX-US) fell 1.01%; TSMC ADR (TSM-US) rose 0.65%; AUO ADR (AUO-US) rose 1.31%; Chunghwa Telecom ADR (CHT-US) rose 0.17 %; UMC ADR (UMC-US) soared 4.09%.
The recent stealing of Micron’s trade secrets caused UMC’s ADR share price to fall nearly 9%. On Tuesday (6th), UMC announced the implementation of the treasury stock plan. The company’s share price stopped falling and rebounded, ending the two consecutive trading days.
In terms of banking stocks, JP Morgan Chase (JPM-US) shares rose 0.49%; Citigroup (C-US) fell 0.92%; Bank of America (BAC-US) rose 0.53%.
Wall Street Analysis
Wall Street generally expects the Democratic Party to control the House of Representatives, while the Republican Party maintains a majority in the Senate. Looking back at history, stocks have performed well in the history of the mid-term elections, with an average annual return of 12% for the S&P 500.
Gene Goldman, research director at Cetera Investment Management, said: “This is a very different election and may not be good for the market.” Goldman mentioned that the Republican-led government has implemented key policies to stimulate economic growth and will be in the future. Slow down the deadlock.
Analysts at Bank of America Merrill Lynch said: “The split Congress is still the most likely outcome, but the possibility of a “blue wave” (overwhelming victory) in the parliament seems to have weakened.
Regardless of the outcome of the midterm elections, it may lead to different policy agendas for Congress, including lowering drug prices, bank regulation and defense spending, and may lead to more investigations of US President Trump.