U.S. Stocks Rose Nasdaq Hit a Record High
In the early hours of the 6th, Beijing time, US stocks closed higher on Thursday, and the Nasdaq and S&P 500 index reached a record closing high. Energy and tourism sectors led the gains. The number of initial jobless claims in the United States fell to 385,000 last week, in line with expectations, boosting market confidence in Friday’s non-agricultural data.
The Dow rose 271.58 points, or 0.78%, to 35064.25 points; the Nasdaq rose 114.58 points, or 0.78%, to 14,895.12 points; the S&P 500 index rose 26.44 points, or 0.60%, to 4,429.10 points.
The Nasdaq rose to 14,896.47 points in the afternoon on Thursday, a record high during the session.
On Thursday’s economic data, the U.S. Department of Labor reported that the number of initial jobless claims in the United States for the week ended July 31 was 385,000, a decrease of 14,000 from the previous week’s revised value. The market expected 384,000, and the previous value was revised to 400,000.
Data released by the US Department of Commerce on Thursday showed that the trade deficit in goods and services increased by 6.7% in June to US$75.7 billion. Economists expect a median deficit of $74.2 billion.
The most important economic data this week is Friday’s July non-agricultural employment data. It will provide an important data reference for the market to determine when the Fed will begin to tighten monetary policy.
According to economists surveyed by Dow Jones (35064.25, 271.58, 0.78%), the number of non-agricultural employment in the United States will increase by 845,000 in July.
The market continues to pay attention to the status of corporate earnings in the second quarter. Some closely watched companies announced disappointing earnings results after the close on Wednesday.
Online ride-hailing giant Uber (43.07, 1.26, 3.01%) (UBER) reported that the adjusted EBITDA (earnings before interest, depreciation and amortization) loss in the second quarter exceeded expectations. The day before, the company’s smaller rival Lyft (52.42, 2.89, 5.83%) (LYFT) unexpectedly reported adjusted EBITDA to achieve profitability.
Etsy (ETSY) reported that the current quarterly sales forecast is lower than expected, confirming many traders’ concerns about the sharp slowdown in e-commerce growth in the second half of this year.
However, despite these fluctuations, the second-quarter results of most large companies exceeded expectations.
According to the latest data from FactSet, as of last Friday, 59% of S&P 500 index companies have announced their results, and 88% of them have earnings per share higher than Wall Street expectations. The expected earnings growth rate of S&P 500 companies is moving in the direction of 85.1%, which will be the largest increase since the fourth quarter of 2009.
Credit Suisse Chief U.S. Equity Strategist Jonathan Golub said: “The recent force behind the market’s rise is the unusually strong earnings report. There are few signs that this strong momentum will not continue until the end of the year and next year.”
But he said: “But you will start to see signs of decline, and the situation becomes increasingly difficult. The decline does not appear in the overall market, but in some industries, stocks and stock market leaders, and there will also be More plate rotations.”
In the past month, due to concerns about the accelerated spread of the new crown delta mutant strains, the defensive sector, including utilities and healthcare, performed well. So far this year, the cyclical sectors of the Standard & Poor‘s 500 Index, such as energy and financial sectors, have still outperformed the broader market. This confirms the investor’s view that the economy will recover from last year’s low this year.
U.S. Treasury bond yields fell again on Thursday. The benchmark 10-year Treasury bond yield fell below 1.13%, briefly hitting its lowest level in six months.
The White House and GM, Ford and other automakers issued a joint statement stating that Biden will sign an executive order on Thursday to set the goal of zero-emission vehicle sales accounting for 50% of total new vehicle sales by 2030, and propose new vehicles Emissions are required to reduce pollution by 2026. The executive order will also initiate the formulation of long-term fuel efficiency and emission standards. The main motivation is to reverse the substantial relaxation of the previous government’s emission policy.
In another statement, nearly ten traditional car companies, including Ford, GM, and Strandis, while supporting the White House policy, also emphasized that the timely arrival of huge financial subsidies is extremely important for achieving these goals. Driven by this, GM, Ford and other auto companies generally rose, driving the charging pile concept stocks such as Blink Charing to rise together.
According to senior US government officials, US President Biden will set a new national goal for the popularization of electric vehicles on Thursday, requiring electric vehicles to account for 40% to 50% of all new car sales by 2030.
This goal is expected to be supported by General Motors (54.44, 1.72, 3.26%), Ford Motor (13.71, 0.39, 2.93%), Stellattis (formerly known as Fiat Chrysler (15.23, 0.00, 0.00%)) and other automakers. Executives from the two Detroit automakers are scheduled to attend an event at the White House on Thursday.
Fed officials who delivered speeches on Thursday included Governor Waller, Minneapolis Federal Reserve Governor Kashkari and others. Waller “highly doubts” the Fed’s need to develop a central bank’s digital currency. He said that it is still unclear whether the Fed can issue a central bank’s digital currency without cost.
The number of initial jobless claims in the United States dropped to 385,000 last week, in line with expectations
The U.S. Department of Labor reported that as of the week of July 31, the number of initial jobless claims in the United States was 385,000, a decrease of 14,000 from the revised value of the previous week. The market expected 384,000, and the previous value was revised to 400,000.
The report showed that the number of people applying for unemployment benefits for the first time in the United States fell further last week. The number of layoffs in July fell to the lowest level in more than 21 years, as companies were retaining employees despite labor shortages.
The analysis pointed out that the ADP private employment data released yesterday was only half the expected, which frustrated the market sentiment that day. But Thursday’s initial jobless claims data has raised the market’s optimistic expectations for Friday’s non-agricultural data.
The number of jobless claims was basically the same in early July. Economists said that California is stepping up to clear the backlog of applications, which has kept the number of applicants above the level of 256,000 before the epidemic.
The U.S. trade deficit widened to a record US$75.7 billion in June
The US trade deficit widened to a record level in June, as domestic importers were eager to meet business investment and household needs. Data released by the US Department of Commerce on Thursday showed that the trade deficit in goods and services increased by 6.7% in June to US$75.7 billion. Economists expect a median deficit of $74.2 billion.
In June, imports of goods and services increased by 2.1% to 283.4 billion U.S. dollars, partly due to higher prices of imported petroleum products. Exports increased by 0.6% to US$207.7 billion.
Government data last week showed that trade dragged down the economic growth in the second quarter, resulting in a 0.44 percentage point decrease in GDP.
The surge in consumer demand, coupled with the steady increase in equipment expenditures of enterprises, has made inventories extremely scarce. At the same time, domestic manufacturers have been struggling to increase production because logistics bottlenecks have caused the global supply chain to be out of sync.
CureVac, Novavax Pharmaceuticals, Vaxart, Ocugen and other biotechnology sectors performed well.
The Biden administration will host an event with several automakers at the White House this Thursday and announce new vehicle emission limits and new electric vehicle sales targets.
Vaccine manufacturer Moderna said on Thursday that the company’s mRNA vaccine is still 93% effective six months after the second dose. Pfizer (45.06, -0.13, -0.29%)/BioNTech of the same route has previously stated that the vaccine will be administered for half a year. Afterwards, the effective rate will drop to 84%. Moderna also stated that the delta mutant virus is a significant new threat and must be vigilant.
The company also disclosed that the second quarter revenue of this year was 4.354 billion US dollars, and the diluted earnings per share was 6.46 US dollars, which were better than market expectations. The advance purchase agreement (APA) that has been finalized this fiscal year is worth 20 billion U.S. dollars, and the year-end production capacity will be between 800 million and 1 billion doses. For the 2022 fiscal year, the company has signed a US$12 billion supply agreement and a US$8 billion additional order right, and a number of procurement negotiations are in progress.
According to Tesla’s (714.63, 3.71, 0.52%) filing with the SEC on Wednesday, the company’s chairman Robyn Denholm sold a total of 31,250 Tesla shares at a price of US$703-726.2 on August 2, worth approximately At 22 million dollars. Since Denholm’s appointment as chairman was an arrangement in 2018 when the company and the SEC settled Musk’s allegations of misleading investors, his transaction was also interpreted as a signal to leave after the expiration of his three-year term.
Roku reported that user growth slowed in the second quarter, and the length of movie watching decreased by 10 hours from the previous quarter.
Vision Graphics’ sales in the second quarter increased by 19.25% year-on-year to US$700,000, in line with market expectations.
Uber’s adjusted EBITDA loss in the second quarter was higher than expected.
Fastly’s net loss in the second quarter expanded more than 3 times year-on-year, and it was worse than market expectations.
Robin Hood, an online brokerage firm, has received attention. The stock hit a record high in intraday trading on Wednesday, closing up 50%. In addition, the stock ranked first in the WSB discussion for two consecutive days.
Robin Hood Securities experienced both an IPO break and a surge of 100% in the past week. The company submitted an announcement on Thursday that an existing shareholder plans to sell up to 97.87 million shares in the future. These shares are automatically converted through convertible bonds associated with the IPO.
Regeneron announced its second-quarter financial report on Thursday, with revenue of US$5.14 billion, far exceeding the expected US$4 billion, of which US$2.76 billion came from the company’s cocktail antibody therapy; Q2 adjusted earnings per share of US$25.8, exceeding market expectations by 50 %.
In other markets, the price of gold futures for December delivery on the New York Mercantile Exchange fell by US$5.60, or 0.3%, to close at US$1808.90 per ounce.
The price of silver futures for September delivery fell 16.9 cents, or 0.7%, to close at $25.292 per ounce.
The price of gold futures for September delivery on the New York Mercantile Exchange rose 54 cents, or 0.8%, to close at US$68.69 per barrel.
Intercontinental Exchange (119.42, -0.11, -0.09%) October delivery of Brent crude oil futures prices rose 54 cents, or 0.8%, to close at 70.92 US dollars per barrel.
So far this week, WTI crude oil futures have fallen by 7.1%, and Brent crude oil has fallen by 5.9%.