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Although the President of the United States, Trump, is very active in the economic restart plan, Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases and member of the New York Coronary Pneumonia Task Force (COVID-19 ), said that if the speed of the economic restart is too high, quickly, it can increase the risk of the epidemic and cause more deaths.
Although Fuche pointed to the risk of an early economic restart, investor sentiment remains optimistic and he hopes the leisure travel industry will benefit from it. On Tuesday (12) in the first operations, Marriott International (MAR-US) and Wynn Resorts (WYNN- (USA). Stock prices have risen.
Furthermore, tech stocks continued to show an upward trend: Apple (AAPL-US) was up 1.15% in early trading, the overall Nasdaq index was up 0.30%, entering the seventh trading day ascending, and the Dow Jones index in the first operations. It went up almost 100 points.
Outbreak of new coronary pneumonia
After a month-long blockade was lifted in Wuhan, China on April 8, a second wave of new infections was reported last week. According to internal sources, Wuhan, China is expected to carry out a viral nucleic acid test throughout the city within 10 days.
In addition, nightclubs in Itaewon, Seoul, South Korea have also recently reported new infections with new pneumonia. As of Tuesday (12), 93 nightclub guests and their families were known to have pneumonia.
Trade agreement between China and the United States returns to the market
China is reportedly increasingly dissatisfied with the first phase of the trade agreement and hopes to start the negotiations again or even cancel it. The President of the United States, Trump, responded coldly on Monday (11) without “interest” in restarting the negotiations and expressed his hope. Seeing that the Beijing authorities complied with the content of the agreement, the purchase volume of the United States increased substantially.
Starting at 10:00 p.m. on Tuesday (12) Taipei time:
- The Dow Jones Index rose 96.90 points or 0.40%, temporarily reported at 24318.89 points
- Nasdaq rose 27.20 points or 0.30%, temporarily reported 9,219.54 points
- S&P 500 rose 9.60 points or 0.33%, temporarily reported 2939.79 points
- Rates increased half by 8.83 points or 0.50%, temporarily reported at 1783.13 points
- TSMC ADR fell 0.17% to $ 52.31 per share
- The performance of the US Treasury. USA At 10 years it fell to 0.721%
- New York light crude rose 5.84% to $ 25.55 a barrel
- Brent crude rose 2.77% to $ 30.45 per barrel
- Gold rose 0.34% to $ 1703.75 per ounce
- The US dollar index fell 0.47% to 99,795 points
Focus actions:
Tesla (TSLA-USA)
Tesla rose 2.92% in early trading to hit $ 834.27.
Tesla CEO Elon Musk tweeted late Monday (11) that Tesla’s Fremont plant in California will resume work. Violation of the home epidemic prevention order in Alameda County, California means that Musk and The local government fight intensified, and even Musk was prepared to be arrested.
In late April, Musk outlined his plan to restart the Tesla factory in early May. Because housing restrictions will expire in early May, but the restrictions have been extended. Musk infuriated on Twitter on Saturday that the restrictions were imposed. The matter sued the Alameda County government and stated that it was considering leaving California and moving the production line to Nevada and Texas.
Boeing (BA-USA)
Boeing rose 1.77% in early operations to hit $ 131.16. A
Boeing CEO Dave Calhoun said the company will resume production of the 737 MAX this month, saying the 737 MAX is nearing the restart stage, and is expected to return to service once the epidemic has subsided. .
However, the current US air travel. USA It is reduced by more than 90% compared to last year, and it will take a long time to recover. The Boeing CEO estimates that tourism demand in the second half of this year will be about half the past, and the future of the aviation industry due to the pneumonia epidemic is difficult to predict. Industry analysts and experts believe Boeing’s decline will continue until at least 2024.
Netflix (NFLX-USA)
Netflix rose 0.28% in early trading to hit $ 441.44.
Benefiting from home insulation and epidemic prevention measures, Netflix’s stock price has risen 36% since this year. Oppenheimer analyst Ari Wald is optimistic that the company’s stock price is expected to rise further to $ 500 per share.
However, Chantico Global CEO Gina Sánchez has a more conservative attitude towards Netflix’s growth potential. Sánchez noted that Netflix subscriptions increased significantly during the epidemic, but it also means that the number of subscriptions continues to grow after the epidemic. Will be restricted
Netflix added 15.8 million global subscribers in the first quarter of this year and expects to increase 7.5 million in the second quarter.
Key economic data for today:
- The US NFIB Small Business Confidence Index. USA For April reported 90.9, estimated 86.5, previous value 96.4
- The annual growth rate of the central United States CPI in April was 1.4%, with an estimated 1.7%, and the previous value was 2.1%
- The annual growth rate of the US CPI. USA For April it was reported at 0.3%, estimated at 0.4%, and the previous value was 1.5%
- United States April underlying CPI monthly growth rate reported -0.4%, estimated -0.2%, prior value -0.1%
- United States April CPI monthly growth rate -0.8%, estimated -0.7%, previous value -0.4%
Wall Street Analysis:
To stabilize oil prices, Saudi Arabia announced that it will begin to cut production by an additional 1 million barrels per day in June. In addition, the United Arab Emirates (UAE) and Kuwait also announced joining the production cuts. As the countries of the world gradually begin to lift the blockade, oil demand has shown signs of recovery. Production reduction policies in oil-producing countries will accelerate the recovery of the energy market.
Croft also said that if a second wave of infections occurs after the economic restart, it will inevitably resume blocking measures and have an impact on the recovery in oil prices. Therefore, in circumstances where the epidemic situation is unknown, the trend in oil prices is still uncertain.
BlackRock strategist Mike Pyle said there are upbeat and cautious sentiments in the stock market at the same time. Investors are optimistic about the economic restart, but still cautious about the weak economic data. Due to the recent deterioration of the epidemic situation in some countries, the market will continue to observe the impact on the financial system and the economy.
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