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On Wednesday (13), Fed President Jerome Powell spoke about the current situation and prospects for the US economy. Bauer said the US economy still has a high degree of uncertainty and downside risks, and to avoid the economy With further deterioration, Bauer called on the government to adopt more fiscal stimulus policies. Furthermore, Bauer also stated that the Federal Reserve did not consider adopting a negative interest rate policy and implied that the probability of implementing negative interest rates was quite low at the end of the year.
In terms of the US fiscal stimulus. USA, the US House of Democratic Representatives USA Announced details of the latest $ 3 trillion bailout project on Tuesday (12) in a bid to mitigate the impact of the epidemic on the economy, including relief from state and local government and direct distribution to core workers La Cámara of Representatives plans to vote on danger checks and appropriations this Friday, but this bill is likely to be blocked by the Republican Party.
Due to Bauer’s more conservative attitude toward the US economic outlook, US stocks continued their decline yesterday on Wednesday (13.) All four major indices fell at the open, and the Dow Jones index fell more than 200 points.
Countries plan to lift the blockade and restart the economy
According to the “NHK” report on Wednesday (13), 39 counties, including Fukuoka, Aichi, Ibaraki, Ishikawa and Gifu, are likely to lift the current state of emergency early. The Japanese government may announce relevant proposals on Thursday (14). If more than 5 people per 100,000 people are diagnosed after the emergency arises, they will consider declaring the emergency again.
In response to the US economic restart plan. The US, Patrick Harker, chairman of the Federal Reserve Bank of Philadelphia, said Tuesday (12) that if the economy opens too quickly, it can cause an uneven recovery and the premature recovery of companies will cause new coronary pneumonia COVID- 19) The second wave of infections and reversed the results of the economic recovery.
United States Extends Sanctions on China
According to foreign reports, President Trump has ordered the US Federal Pension Fund. USA Let it stop investing more than $ 4 billion in Chinese stocks as one of the sanctions against China.
Additionally, the United States Congress is seeking a bill to blame China for concealing the New Crown epidemic. Republican Senator Lindsey Graham introduced the Covid-19 Accountability Act on Tuesday (12) to lobby China sincerely explained the epidemic situation.
Starting Wednesday, Taipei (13) at 22 o’clock:
- The Dow Jones index fell 275.53 points or -1.16%, temporarily reported 23489.25 points
- Nasdaq fell 31.18 points or -0.35%, provisionally reported 8971.38 points
- S&P 500 fell 20.36 points or -0.71%, temporarily reported 2,849.76 points
- Rates fell by 5.62 points or -0.33%, temporarily reported at 1718.39 points
- TSMC’s ADR increased 1.25% to $ 51.73 per share
- The performance of the US Treasury. USA At 10 years it fell to 0.662%
- New York light crude rose 0.08% to $ 25.80 a barrel
- Brent crude fell 0.07% to $ 29.96 per barrel
- Gold rose 0.31% to $ 1,712.05 per ounce
- The US dollar index fell 0.10% to 99,858 points
Focus actions:
JD.com (JD-US)
JD.com rose 3.51% in the first operations to reach US $ 48.68.
Mizuho analyst James Lee upgraded his rating on JD.com from Wednesday the 13th to 13th, from “neutral” to “buy,” and raised his price target from $ 37 to $ 58. Lee said the company’s online pharmacy business has considerable potential and was hit by the new corona epidemic, which also led consumers to buy many necessities online. Lee estimates that the overall size of the online pharmacy and the e-commerce market are expanding. Additionally, Lee believes that with JD’s brand recognition and strong logistics infrastructure, it will give the company a competitive advantage.
Uber (UBER-US)
Uber fell 0.37% in early operations to $ 32.28. A
According to the news, Uber is bidding on Grubhub, a food delivery platform. Earlier this year, Grubhub released a statement denying the sales rumors, and there were reports in the market that at least three large retailers, including Wal-Mart (WMT-US), were planning to acquire the delivery platform company. At the time, Grubhub said it did not have a sales plan. .
After the Uber and Grubhub merger, the two food delivery giants will merge into one, which is expected to establish a new order for the market. People familiar with the matter said Uber had previously held merger talks with its DoorDash peers, but the follow-up results were inconclusive.
Pfizer (PFE-US)
Pfizer rose 0.03% in early trading to hit $ 37.38.
Pfizer announced Tuesday (13) that it will further expand human trials of vaccines for new coronary pneumonia. Subjects are expected to reach thousands of people in September, and millions of doses of vaccines will be available in late October.
Pfizer has collaborated with German pharmaceutical manufacturer BioNTech to jointly develop the experimental vaccine against the BNT162 virus, and launched the first human trials last Tuesday. Pfizer expects that the first batch of clinical trials will have at least 360 people. Pfizer chief executive Albert Bourla said the vaccine is expected to be mass produced and distributed in the United States by the end of the year, and that the vaccine dose will increase to hundreds of millions in 2021.
Key economic data for today:
- The annual growth rate of the United States’ PPI for April was reported at 0.6%, estimated at 0.8%, and the previous value was 1.4%
- United States April monthly growth rate of the reported underlying PPI -0.3%, estimated -0.1%, previous value 0.2%
- United States April annual growth rate of reported PPI -1.2%, estimated -0.2%, previous value 0.7%
- United States April PPI reported monthly growth rate -1.3%, estimated -0.4%, previous value -0.2%
Wall Street Analysis:
Prudential strategist Quincy Krosby said that as the market waits for the economy to restart, it will spur the recovery in the economy, prompting US stocks to show a continued upward trend last week, and the S&P 500 index. it also increased to about 3,000 points. In order to stimulate the S&P 500 Index to further exceed 3,000 points, one of the important factors is whether the number of confirmed cases can no longer increase after the economic restart. Furthermore, if the Sino-US trade war is to restart it is also one of the approaches that investors should pay attention to.
The new crown epidemic has affected the income of American companies. In order to maintain sufficient cash flow in the account, many companies have announced that they will postpone the repurchase of shares and the payment of dividends. According to Bank of America estimates, the scale of share buybacks of S&P 500 companies in the second quarter will be reduced by 90%, setting a low record.
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