US Stock Index Futures
On Wednesday, US stock index futures rose, and Dow futures rose about 200 points. Earlier, Evergrande announced that it would pay interest on a batch of bonds in mainland China as scheduled, alleviating market concerns that Evergrande’s issue will impact the global market.
It is widely expected that the Fed will send a signal to reduce the size of bond purchases, but it will not be implemented immediately, but will begin in November.
In addition to when to start reducing quantitative easing, investors also need to pay attention to when the Fed will completely withdraw from quantitative easing, as well as changes in the dot matrix, especially whether the time for interest rate hikes will be advanced.
Barclays analyst Juan Prada said that despite the slowdown in US demand and the rise in covid-19 cases, concerns about supply bottlenecks and uncertainty about the outlook for inflation will make the Fed tend to withdraw from quantitative easing as soon as possible.
However, some analysts said that there is no need to worry about this. Senior Fed observer Mickey Levy believes that the size of the Fed’s investment portfolio is huge, and the reduction in debt purchases is insignificant and “has no impact on the economy.” And because bond yields are too low, rising a little has little effect.
CICC Research also believes that “short-term markets face callback and volatility risks caused by uncertainty does not mean that we have turned pessimistic about the mid-term prospects of the US stock market. In fact, a certain degree of callback will provide a better window for re-intervention.”
On the previous trading day, US stocks were mixed. The Dow fell 0.15%, the S&P 500 fell 0.08%, and the Nasdaq rose 0.22%.
Dow futures rose 204.3 points Or about 0.6%, reported 34,124.1 points; Nasdaq 100 index futures rose 72 points, or about 0.48%, reported 1,5099.8 points.
General Mills (NYSE: GIS) rose 3.32%. The first-quarter results were better than market expectations, and the pet food business grew strongly, alleviating the negative impact of the slowdown in demand for seasoning and bakery products. Sales rose from 4.36 billion US dollars in the same period last year to 4.54 billion US dollars, exceeding the average analyst forecast of 4.29 billion US dollars. Among them, the net sales of the pet food division increased by 25% during the quarter to reach 488 million U.S. dollars.
FedEx (NYSE:FDX) fell 6.36%. The previously announced quarterly results were significantly lower than market expectations, mainly due to a lack of labor, which led to increased wages and transportation costs and a decline in efficiency. Although Citigroup maintained the FedEx Buy rating, it lowered its target price from US$360 to US$300. The bank also stated that FedEx has done “particularly poor” in core cost management.
Adobe (NASDAQ: ADBE) fell 3.65%, although third-quarter revenue and earnings and fourth-quarter guidance exceeded market expectations.
Stitch Fix (NASDAQ:SFIX) rose 11.68%, quarterly revenue exceeded market expectations, and unexpectedly achieved profitability.
DraftKings (NASDAQ: DKNG), a British digital sports entertainment and gaming company, rose 0.72%. The company proposed to acquire Entain, a British sports lottery company, for US$20 billion.
Faraday Future (NASDAQ: FFIE) rose 4.96%. Pioneer, the world’s largest public equity fund, has opened a position in the stock and became the fifth largest shareholder of the stock.
Workhorse Group (NASDAQ: WKHS) fell 6.72%. The company announced that it would suspend delivery of C-1000 series all-electric delivery vehicles and recall 41 C-1000 electric vehicles that have been delivered. The company stated that in order to meet customer feedback, some improvements have been identified in the production process and design of the C-1000.
Pfizer Pharmaceuticals (NYSE:PFE) rose 0.05%, and Moderna (NASDAQ:MRNA) rose 0.37%. According to reports, the Biden administration urged Pfizer and Moderna to authorize the new crown vaccine technology.
Inovio Pharmaceuticals (NASDAQ:INO) rose 1.78%, and the company announced that it has obtained regulatory approval to carry out a phase 3 efficacy trial of its new coronavirus DNA vaccine INO-4800 in Mexico.
Apple (NASDAQ:AAPL) rose 0.42%, Netflix (NASDAQ:NFLX) rose 0.76%, Microsoft (NASDAQ:MSFT) rose 0.53%, Amazon (NASDAQ:AMZN) rose 0.31%, and Google (NASDAQ:GOOG) rose 0.48%, Facebook (NASDAQ: FB) rose 0.53%, Twitter (NYSE: TWTR) rose 0.35%.
Tesla (NASDAQ: TSLA) rose 0.49%.
China Concept Stocks
Gaotu Education (NYSE: GOTU) fell 0.81%. Gaotu achieved revenue of RMB 2.232.3 billion in the second quarter, a year-on-year increase of 35.3%, and the market is expected to be RMB 2.497 billion; of which online K-12 course revenue was RMB 2.091 billion, a year-on-year increase of 51%. According to non-US GAAP, the net loss was 764 million yuan, compared with a profit of 72.71 million yuan in the same period last year. The number of regular-price classes paid was 1.631 million, a year-on-year increase of 4.1%. The number of paid online K-12 courses increased by 4.5% year-on-year. Due to the uncertainty of the recent regulatory and operating environment, Gaotu decided not to issue guidance for the near-term business.
Mavericks Electric (NASDAQ: NIU) rose 0.28%. Zhang Peng, the chief financial officer of Mavericks Electric, resigned due to personal reasons. Effective September 30, the company is looking for a successor.
Weilai Automobile (NYSE:NIO) rose 1.03%, Ideal Motors (NASDAQ:LI) rose 1.15%, and Xiaopeng Motors (NYSE:XPEV) rose 1.14%.
Bilibili (NASDAQ: BILI) rose 1.76%, iQiyi (NASDAQ: IQ) rose 1.09%, and Huya (NYSE: HUYA) rose 1.75%.
Futu Securities (NASDAQ:FUTU) rose 1.27% and Tiger Securities (NASDAQ:TIGR) rose 1.94%.
Alibaba (NYSE:BABA) rose 1.05%, JD (NASDAQ:JD) rose 1.42%, and Pinduoduo (NASDAQ:PDD) rose 1.18%.
Baidu (NASDAQ: BIDU) rose 1.08%. Didi (NYSE:DIDI) rose 1.58%.
Weibo (NASDAQ:WB) rose 1.05%. NetEase (NASDAQ: NTES) rose 0.81%.
As of 20:59 Beijing time (08:59 AM Eastern Time), the European stock market of Investing.com showed that the European stock market rose generally. The German DAX index rose 0.77%, the French CAC 40 index rose 1.25%, the London FTSE 100 index rose 1.45%, and the Pan-European Stoxx 50 index rose 1.02%.
The dollar index futures, which measures the dollar’s trend against a basket of six major currencies, rose 0.02% to 93.222.
The Comex gold futures price on the New York Mercantile Exchange fell 4.5 US dollars, or about 0.25%, to 1,773.70 US dollars per ounce.
London Brent crude oil rose 97 cents, or about 1.3%, to $75.33 per barrel. US WTI crude oil futures prices rose 92 cents, or about 1.31%, to US$71.41 per barrel.
On Wednesday, US stock index futures rose, and Dow futures rose about 200 points. - /10