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The financial report of the tech giants is about to debut after the closing. Technology stocks overall rose on Thursday (29). The Nasdaq Index rose 0.3%, the S&P 500 Index rose 0.2%, fees rose 0.15% and the Dow Jones Industrial Average opened. The decline intensified after a small 0.12% drop, dropping more than 100 points before the deadline.
Apple (AAPL-US), Amazon (AMZN-US), Alphabet (GOOGL-US) and Facebook (FB-US) led the gains. Facebook was up 2.8% in early trading, Apple was up 1.6%, Alphabet was up 0.7% and Amazon was up 0.2%, 4 companies will announce their latest financial reports after the market close on Thursday.
The intensification of the epidemic in Europe has forced the two main European economies to update their blocking measures. Germany and France have successively announced that they will implement a one-month national lockdown on November 2 and October 30 respectively. The news has exacerbated market volatility.
The CBOE volatility index (VIX), known as the “panic index”, soared above 40 during the trading period on Wednesday (28), reaching the highest level in more than four months, and is still around of 40.
US Economic Data
After the 31.4% drop in the previous quarter due to the epidemic, which was the largest drop on record, on Thursday (29) it was announced that the initial value of the US third quarter GDP shot up 33.1% , which also set a record.
The number of applications for unemployment benefits in the United States has decreased for two consecutive weeks. As of October 24, the number of initial unemployment benefits in the United States was 750,000, and as of October 17, the number of renewed unemployment benefits was almost 7.76 million, both better than expected and in previous values . .
At 21 o’clock on Thursday (29) Taipei time:
- The Dow Jones Index fell 38.97 points, or -0.12%, to 26,480.98 points temporarily.
- Nasdaq rose 71.82 points, or 0.65%, to 11,066.76 points temporarily
- The S&P 500 Index climbed 6.14 points, or 0.19%, to 3,277.17 points temporarily
- Commissions rose 3.24 points and 0.15%, temporarily to 2,226.22 points
- TSMC ADR rises 0.42% to $ 84.20 per share
- Yield on 10-year US Treasuries fell to 0.776%
- New York light crude oil fell 5.91% to $ 35.18 a barrel
- Brent crude fell 5.78% to $ 36.86 a barrel
- Gold fell 0.77% to $ 1,864.80 an ounce
- The dollar index rose 0.49% to 93.87 points
Focus actions:
Marvell Technology (MRVL-US) fell 9.87% in early trading to $ 35.63.
“The Wall Street Journal” quoted people familiar with the matter as saying that if negotiations go smoothly, Marvell will announce the acquisition of Inphi at the earliest on Thursday, the amount could reach $ 10 billion, making it the second. large-scale semiconductor acquisition this week after AMD’s acquisition of Xilinx.
Marvell’s current market value is approximately $ 26 billion and its business is primarily producing network-related and data storage chips. The Inphi acquisition will help the company expand its networking business.
Pinterest (PINS-US) was up 30.48% in early trading to $ 64.26.
Key Data From Third Quarter Financial Report vs. Analyst Expectations
- Adjusted EPS: 13 cents vs 3 cents (Refinitiv survey)
- Revenue: US $ 443 million vs. US $ 383.5 million (Refinitiv survey)
- Net loss: US $ 94.2 million
- Monthly Active Users (MAU): 442 million vs. 436.38 million (FactSet survey)
- Average revenue per user (ARPU): $ 1.03 vs. $ 0.90 (FactSet survey)
Fourth quarter outlook
- Revenue: annual growth of about 60% vs. 58% (FactSet survey)
KLAC (KLAC-US) rose 1.17% to $ 192.77 in early trading.
First quarter of fiscal 2021 based on key GAAP data:
- Revenues reported US $ 1.54 billion, a 5% quarterly increase and a 9% annual increase, better than market expectations of US $ 1.49 billion.
- Net income was reported at US $ 421 million, a 2% quarterly increase and a 21.3% annual increase
- EPS after dilution is reported at $ 2.69 per share
Fiscal Year 2021 First Quarter is based on key non-GAAP financial reporting data:
- Net income was reported at $ 475 million, an increase of 12% quarterly and 19% annually.
- The gross profit margin reported 62.1%, which is 60% higher than the financial target
- EPS reported at US $ 3.03, better than market expectations of US $ 2.77
- Free cash flow is $ 456 million
Daily key economic data:
- The initial value of the US Q3 GDP quarterly growth rate was 33.1%, expected to be 32.0%, and the previous value -31.4%
- US Q3 Quarterly PCE Growth Rate Initially Reported 3.7%, Previous Value-1.6%
- US Q3 Core PCE Quarterly Growth Rate Initially Reported 3.50%, 4.0% Expected, Previous Value-0.8%
- The United States reported last week (10/24) 751 thousand initial unemployment benefits and an expected 770 thousand. The previous value rose from 787,000 to 791,000
- The United States reported last week (10/17) 7.756 million renewed unemployment benefits, which are expected to be 7.775 million. The previous value rose from 8,373 million to 8,465 million.
Wall Street Analysis:
Josh Bivens, head of research at the Institute for Economic Policy, believes that any increase in US GDP in the third quarter builds on the sharp contraction of the previous quarter. So even if the third quarter data rises, it doesn’t mean the US economy is out of trouble. In fact, the US economy is still far from this level.
Nomura Securities economist Lewis Alex said that although the base effect will boost third-quarter GDP higher, according to monthly data, the economic recovery has entered a slowdown stage.
With Election Day approaching, Barclays senior strategist Shinichiro Kadota said current polls show Biden is still temporarily leading, but Trump’s polls in some swing states are catching up. If the elections are closer, the market Of course, volatility may increase.
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