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On Friday (30), negotiations on a new US fiscal stimulus plan broke down, the infection rate of the new krone soared, the VIX panic index remained high, Apple’s earnings report had good results, Twitter plunged more than 20%, technology stocks fell collectively, and the intraday Dow Jones fell more than 500 points and closed more than 100 points.
The Dow Jones fell 6.5% this week and the S&P fell 5.6% this week, marking its biggest weekly decline since March. The Nasdaq fell more than 5% weekly, its worst weekly performance since March.
The postponement of the Senate until November 9 made it extremely unlikely that the two parties would reach an agreement before the general elections next Tuesday. At the same time, Finance Minister Mnuchin accused the Speaker of the House of Representatives, Pelosi, of having made a mistake, leading to a deadlock in negotiations between the two sides.
The global epidemic of new corona pneumonia (COVID-19) continues to have a fever. Before the deadline, according to real-time statistics from Johns Hopkins University in the United States, the number of confirmed cases worldwide has exceeded 45.36 million and the number of deaths has exceeded 1.18 million .
The cumulative number of confirmed cases in the United States exceeds 9 million and the cumulative number of deaths exceeds 229,000. As of Thursday, the United States has reported 88,521 newly diagnosed cases, a record in a single day, while the number of hospitalizations in 41 states is on the rise, and the 7-day average hospitalization rate in 17 states has reached a new record. .
Scott Gottlieb, former director of the US Food and Drug Administration (FDA), when the US once again set a new record for new diagnoses in a single day, the outbreak can be seen in the America is starting to pick up speed.
Friday (30) the performance of the four main US stock indices:
- The Dow Jones Index fell 157.51 points, or 0.59%, to close at 26.501.60 points.
- The S&P 500 Index fell 40.15 points, or 1.21%, to close at 3,269.96 points.
- The Nasdaq index fell 274.00 points, or 2.45%, to close at 10,911.59 points.
- The Philadelphia Semiconductor Index fell 37.50 points, or 1.64%, to close at 2,246.15 points.
The big five tech giants collapsed. IBM (IBM-US); Apple (AAPL-US) fell 5.60%; Microsoft (MSFT-US) fell 1.10%; Amazon (AMZN-US) fell 5.45%; Alphabet (GOOGL-US) fell 3.80%; Facebook (FB-US) fell 6.31%.
The constituent shares of the Dow Jones closed lower. Boeing (BA-US) fell 2.63%; IBM (IBM-US) rose 2.53%; Nike (NKE-US) fell 2.26%; the sales force (CRM-US) fell 2.05%; Visa (V-US) fell 1.71%; Dow Chemical (DOW-US) fell 1.64%.
Fei’s semicomponent stocks were mixed. AMD (AMD-US) fell 3.50%; Intel (INTC-US) rose 0.41%; Micron (MU-US) fell 0.20%; Xilinx (XLNX-US) fell 3.37%; NVIDIA (NVDA-US) fell 3.63%; Qualcomm (QCOM-US) fell 2.42%.
Taiwan ADR stock led ASE’s gains. UMC ADR (UMC-US) fell 2.57%; TSMC ADR (TSM-US) fell 1.20%; ASE ADR (ASX-US) rose 4.34%; Chunghwa Telecom ADR (CHT-US) was up 0.85%.
Featured Stock News
Apple’s iPhone sales (AAPL-US) in the fourth quarter of the fiscal year fell short of expectations and did not provide financial forecasts for the first quarter of 2021. Its share price fell 5.60% to 108 , $ 86 per share.
The daily growth of active Twitter users (TWTR-US) was not as good as Wall Street expectations. Uncertainty in the US elections may drag down the quarterly ad spend of Twitter advertisers. Its share price plummeted 21.11% to $ 41.36 per share.
Amazon (AMZN-US) reported better-than-expected third-quarter financial results, but due to rising costs due to the epidemic, its operating profit forecast for this quarter was not as good as market expectations, and price of its shares fell 5.45%.
Facebook (FB-US) saw a decline in the number of users in the United States and Canada in the third quarter, and its share price fell 6.31%.
Economic data
- The annual growth rate of the PCE price index in the United States in September reported 1.5%, which is expected to be 1.7% and 1.4% earlier.
- The annual growth rate of the underlying PCE price index in the United States in September reported 1.5%, which is expected to be 1.7% and 1.6% earlier.
- The monthly growth rate of personal spending in the United States reported 0.9% in September, which is expected to be 0.4% and 1.0% earlier.
- Chicago PMI reported 61.1 in October, expected 58.5, previous value 62.4
- The final value of US consumer confidence in October is 81.8, it is expected to be 81.2 and the previous value is 81.2
Wall Street Analysis
US Election Day is approaching on November 3, and the spread of the virus continues to accelerate, with the Dow Jones hitting more than 6% this week. Stifel Economics said in a report: “The economy is unlikely to follow a positive path easily, especially if the epidemic intensifies and undermines the progress of the economic recovery from July to September.”
David Einhorn, founder of hedge fund Greenlight Capital, said that when the S&P 500 index hit an all-time high on September 2, 2020, tech stocks were in a big bubble.
After the US presidential election, the outside world expects the new large-scale stimulus bill to promote the capital market from technology stocks to economically sensitive value stocks.
According to Max Gokhman, head of asset allocation at Pacific Life Fund Advisors, investment in large tech stocks fell from “overweight” to “hold” in September.
UBS analysts said: “For the big tech stocks, the advantage is increasingly limited.”
Brian Jacobsen, senior investment strategist at Wells Fargo Asset Management, said that more of his investment portfolio has been transferred to more attractively valued cyclical stocks, especially industrial stocks.
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