Fed Bauer policy announced that the main indices opened high in the first operations, the dollar fell to a low of almost 2 years Anue Juheng

All four major indices opened higher in early trading on Thursday (27). The Dow Jones Industrial Average opened 61 points or 0.21%, the Nasdaq index rose 0.56%, the S&P 500 index rose 0.27%, half of commissions rose 0.29% or the dollar it fell. Affected by the policy announcement of the “average inflation target” by Jerome Powell, Chairman of the Federal Reserve, the US dollar index is close to a 2-year low.

Since the beginning of this week, the major indices have risen more than 2% on average. The S&P 500 and Nasdaq are expected to rise for five consecutive weeks, while the Dow Jones is expected to post a third consecutive week of gains in the past four weeks.

Fed Chairman Ball announced at the Jackson Hole Global Central Bank Annual Meeting on Thursday (27) that the Fed unanimously agreed to adopt an “average inflation target” policy, hoping to achieve a target of average inflation of 2%. It also implies that the Fed will allow inflation to rise above 2% in some cases.

Bauer’s statements show that the Fed can keep interest rates low for a long time. This move can put strong pressure on the US dollar. The US dollar fell on Friday (28).

Looking at economic data, personal spending in the United States increased 1.9% month-over-month in July, 1.5% above market expectations. Personal income was also better than expected, with a monthly increase of 0.4%.

At 9 p.m. on Friday (28) Taipei time:

• The Dow Jones Index climbed 61.08 points, or 0.21%, to 28,553.35 points temporarily.
• Nasdaq rose 65.38 points or 0.56% to 11,690.71 points temporarily
• The S&P 500 rose 9.52 points, or 0.27%, temporarily to 3,494.07 points
• Commissions and a half rose 6.52 points or 0.29%, temporarily to 2,226.67 points
• TSMC ADR falls 0.37% to $ 80.30 per share
• Yield on 10-year US Treasuries fell to 0.729%
• New York light crude oil rose 0.26% to $ 43.15 a barrel
• Brent crude rose 0.22% to $ 45.19 a barrel
• Gold rose 1.75% to $ 1966.50 an ounce
• The dollar index fell 0.59% to 92.44 points

Focus actions:

Coca-Cola (KO-US) rose 1.04% in early trading to $ 48.73.

Coca-Cola announced a workforce restructuring plan to provide voluntary layoff programs for employees in the United States, Canada and Puerto Rico who assumed positions prior to September 1, 2017. The total number is approximately 4,000. The company expects this global layoff program to cost the company $ 350 million to $ 550 million.

In terms of operations, Coca-Cola will establish 9 new departments to replace the original 17 commercial departments and will focus on expanding new product lines to reduce unnecessary waste of resources.

HP (HPQ-US) was up 1.87% in early trading to $ 19.05.

Q3 Key facts based on GAAP financial report:

• Revenue was reported at US $ 14.3 billion, a 2.1% year-on-year decrease. Excluding currency effects, it was a 0.2 year-on-year decline, which was better than market expectations of US $ 13.3 billion.
• Diluted EPS reported 52 cents, compared to 78 cents in the same period last year, a decrease of 33% annually.
• Reported gross profit margin 5.4%
• Net profit was USD 700 million, a year-on-year decrease of 37.7%
• Free cash flow of $ 1.6 billion
• Net operating cash of US $ 1.7 billion

Q3 Key facts based on non-GAAP financial reports:

• Diluted EPS reported 49 cents, a 15.5% year-on-year decrease, beating market expectations of 43 cents.
• Reported gross profit margin 6.1%
• Net income was $ 700 million, compared to $ 900 million in the same period last year, a 20.2% year-on-year decrease.

Wal-Mart (WMT-US) was up 1.84% in early trading to $ 139.14.

Walmart confirmed on Thursday (27) that it will partner with Microsoft (MSFT-US) to bid on TikTok’s business in the US, and stated in a statement that establishing a cooperative relationship with Microsoft and TikTok will help the company. to develop e-commerce services and advertising businesses. The cooperation with Microsoft will meet the expectations of US TikTok users while reducing doubts from regulators.

Daily key economic data:

• The monthly growth rate of personal spending in the United States in July was reported at 1.9%, which is expected to be 1.5%. The previous value was revised to 6.2% from 5.6%
• The initial value of the monthly growth rate of the US wholesale inventory in July reported-0.1%, expected-1.0%, the previous value was revised to-1.3% from-1.4%
• The annual growth rate of the underlying PCE price index in the United States in July reported 1.0%, which is expected to be 0.8%, and the above value is 0.8%
• The basic PCE price index in the United States registered an annual growth rate of 1.3% in July, which is expected to be 1.2%. The previous value was revised to 1.1% from 0.9%.

• At 9:45 p.m., Taipei time, the Chicago PMI for August in the United States is announced, which is expected to be 51.0, and the previous value is 51.9
• At 10:00 p.m., Taipei time, the final value of US consumer confidence in August is announced, which is expected to be 72.8 and the previous value 72.8

Wall Street Analysis:

Tai Hui, chief Asian market strategist at JPMorgan, said: “Monetary policy may remain lax. The Fed not only needs to provide enough support to help the economy shake off the impact of the epidemic, but also maintain interest rates. policy at a low level. Generate enough inflationary pressure. “

National Australia Bank (National Australia Bank) economist John Sharma noted that Ball’s remarks show the Fed will maintain a dovish tone, providing support for gold. Technical analyst Wang Tao noted that spot gold prices are expected to rise per ounce in 1966. Dollar.