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Major US stock indices opened higher on Wednesday the 16th. The Dow Jones Industrial Average rose more than 80 points or 0.30% at the open, the Nasdaq Index rose 0.31% and the S&P 500 Index rose. for the fourth consecutive day, or 0.37%, the average rate rose 0.51%.
The Fed will announce the latest interest rate resolution at 2:00 Taipei time on Thursday (17), giving clear guidance on the economic outlook. This is also Fed Chairman Jerome Powell’s announcement of the “average inflation target” at this year’s annual meeting of the world’s central banks. For the first interest rate meeting from the policy framework, most analysts expect the Fed to continue to maintain a dovish stance.
In terms of economic data, the US Department of Commerce announced the latest retail sales data. In August, growth in retail sales slowed slightly, with a monthly increase of 0.6%, which was less than the 1% expected by the market. The previous value was revised down from 1.2% to 0.9%; The rate reported 2.6%, the previous value was 2.7%.
At 21 o’clock on Wednesday (16) Taipei time:
- The Dow Jones Index rose 58.63 points, or 0.21%, temporarily to 28,054.23
- Nasdaq rose 34.91 points, or 0.31%, temporarily to 11,225.23 points
- The S&P 500 was up 12.50 points, or 0.37%, temporarily at 3.13.70
- Commissions and a half rose 11.37 points or 0.51%, temporarily to 2,230.56 points
- TSMC ADR rose 0.26% to $ 86.07 per share
- Yield on 10-year US Treasuries fell to 0.661%
- New York light crude oil rose 2.72% to $ 39.32 a barrel
- Brent crude oil rose 2.47% to $ 41.53 a barrel
- Gold rose 0.84% to $ 1982.80 an ounce
- The dollar index fell 0.26% to 92.84 points
Focus actions:
FedEx (FDX-US) rose 4.55% to $ 247.43 in early trading.
Key data for the first quarter of fiscal 2020 based on non-GAAP earnings:
- Reported revenue at US $ 19.3 billion, an annual increase of 13.5%, higher than market expectations of US $ 17.55 billion
- Net income was reported at $ 1.28 billion, an annual increase of 60%
- Diluted EPS was reported at US $ 4.87, higher than the US $ 3.05 for the same period last year and higher than market expectations of US $ 2.69
General Motors (GM-US) was up 2.88% in early trading to $ 32.49.
Foreign media reported that General Motors is about to announce a plan to produce self-designed electric vehicle motors and powertrains to help the company further improve production efficiency when it switches to fully electric products. According to “Reuters”, the self-designed system is called “Ultium Drive”.
Boeing (BA-US) fell 1.09% in early trading to $ 161.70.
The Transportation Committee of the US House of Representatives released a 238-page report on Wednesday (16), revealing the details of the two fatal Boeing 737 Max crashes.
The Transportation Commission noted that factors leading to the accident included Boeing’s negligence in design, government regulatory loopholes, and accused Boeing and the United States Aviation Administration (FAA) of serious lack of transparency.
Daily key economic data:
- The monthly growth rate of US retail sales in August registered 0.6%, which is expected to be 1.0%, and the previous value decreased from 1.2% to 0.9% .
- The annual growth rate of US retail sales in August was 2.6%, down from 2.7%
- At 22:00 Taipei time, the September US NAHB Real Estate Market Index will be announced, which is expected to be 78.0 and the above value is 78.0
- At 10:30 p.m. Taipei time, the rise and fall of EIA crude inventories will be announced last week, the previous value of which increased by 2.033 million barrels.
Wall Street Analysis:
Mark Haefele, chief investment officer at UBS Global Wealth Management, said: “The central bank is still a long way from running out of ammunition and investors should be in a good position in the long position of equities.”
Edward Meir, an analyst at ED&F Man Capital Markets, said the market will pay attention to whether the Fed adjusts its wording, which may be related to keeping interest rates low over a period of time or related to inflation.
However, ED&F Man Capital Markets believes that the Fed is unlikely to use very determined language before the US economy turns.
Cherry Lane Investments partner Rick Meckler said: “I don’t think the Fed is worried about supporting the stock market, but they will be concerned about supporting the economy with low interest rates for a long time. However, the policy of the Fed may be the biggest driving force for the stock market to continue to strengthen. “
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