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After Apple and other tech stocks announced their financial reports on Thursday, market volatility continued to intensify. US stocks fell across the board on Friday (30). The Dow Jones Industrial Average fell 0.4%, the Nasdaq fell 0.6% and the S&P 500 fell. 0.4%, half of the rate fell 0.8%.
Apple (AAPL-US) fell 3.2% in early trading, Facebook (FB-US) fell 2.7% and Amazon (AMZN-US) fell 2%. Due to strong revenue growth driven by the advertising business, Alphabet (GOOGL-US) increased 7.6% in early trading.
Due to lower growth in daily active users than expected, and concerns that the uncertainty of the US general election could reduce ad spending, Twitter fell 16% in early trading.
Refinitiv data shows that the third quarter earnings season has passed the middle. As of now, about 84.8% of the stocks that make up the S&P 500 Index have beat expectations. Overall, the agency expects corporate profits to fall 13.4% from last year.
With the increase in the number of cases in Europe and the United States, coupled with the uncertainty of the election results, the Dow Jones index is about to enter its worst week since March. On the last weekend before the election, the VIX Panic Index was still at a 20-week high.
According to data from Johns Hopkins University, on Thursday (29), almost 89,000 new crowns were diagnosed in the United States in a single day, an increase of almost 10,000 from the previous day, setting a record. Currently, the cumulative number of confirmed cases has exceeded 8.9 million, with a cumulative death of nearly 230,000.
In European countries that have recently announced lockdown measures, France added 48,000 cases, Italy added 27,000 cases, Spain added 24,000 cases, Great Britain added 23,000 cases, and Germany added 11,000 cases.
After the interest rate decision was issued on Thursday, Christine Lagarde of the European Central Bank warned that rising infections, coupled with lockdown measures that suppress economic activity, would significantly worsen the outlook for the economy. European Union, and hinted that he would expand political stimulus in December.
Starting at 21 o’clock on Friday (30) Taipei time:
- The Dow Jones Index fell 95.58 points, or -0.36%, to 26563.53 points temporarily.
- Nasdaq fell 74.14 points, or -0.66%, to 11,111.45 points temporarily
- The S&P 500 Index fell 12.65 points, or -0.38%, to 3,297.46 points temporarily.
- Commissions and a half fell 18.79 points or 0.82%, temporarily to 2,264.87 points
- TSMC ADR fell 0.55% to $ 84.42 per share
- Yield on 10-year US Treasuries increased to 0.838%
- New York light crude fell 1.08% to $ 35.78 a barrel
- Brent crude fell 0.13% to $ 37.60 a barrel
- Gold rose 1.11% to $ 1,888.80 an ounce
- The US dollar index fell 0.25% to 93.745 points.
Focus actions:
Apple (AAPL-US) fell 3.18% in early trading to $ 111.65.
Key figures for fiscal year Q4 2020 (end of September 26)
- EPS after dilution: 73 cents vs. $ 70 (Refinitiv expected)
- Revenue: annual growth of approximately 1% to US $ 64.7 billion versus US $ 63.7 billion (Refinitiv forecast)
- Gross profit margin: 38.2% vs 38.1% (Refinitiv expects)
Performance of each end product
- IPhone revenue: a 20.7% year-on-year decline to $ 26.44 billion vs. $ 27.93 billion (Refinitiv forecast)
- Mac revenue: 29% annual growth to $ 9 billion vs. $ 7.93 billion (Refinitiv expects)
- IPad revenue: 46% annual growth to US $ 6.8 billion vs. US $ 6.12 billion (Refinitiv expects)
- Revenue from wearable devices, home equipment and accessories (including AirPods and Apple Watch): an annual increase of 20.8% to US $ 7.88 billion versus US $ 7.4 billion (Refinitiv forecast)
- Service revenue (including iCloud, Apple Music) – 16.3% annual increase to $ 14.55 billion vs. $ 14.08 billion (Refinitiv expected)
Under Armor (UAA-US) rose 9.93% in early trading to $ 15.16.
Q3 Key facts based on GAAP financial report:
- Revenues: US $ 1.43 billion, almost the same as last year, better than the US $ 1.16 billion expected by Refinitiv
- Net profit: $ 38.95 million, an annual reduction of 62%
- EPS: 9 cents
Q3 Key facts based on non-GAAP financial reports:
- Adjusted net profit: US $ 118 million,
- Adjusted EPS: 26 cents, better than the 3 cents expected by Refinitiv
Chevron (CVX-US) rose 0.74% in early trading to $ 69.31.
Key facts from the third quarter financial report:
- Revenue: $ 24.45 billion, a 32% annual decrease, less than market expectations of $ 25.8 billion
- Net loss: US $ 207 million
- Adjusted net loss per share: $ 0.11, better than Refinitiv’s expected loss of 0.27 cents
Daily key 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.
- At 9:45 p.m. Taipei time, the Chicago PMI for October will be announced, which is expected to be 58.5, while the previous value is 62.4
- At 10:00 p.m. Taipei time, the final value of US consumer confidence in October will be announced, which is expected to be 81.2 and the previous value 81.2
Wall Street Analysis:
Ryan Detrick, senior market strategist at LPL Financial, said that even if earnings from tech stocks remain relatively good, election uncertainty and fears of a spike in cases still exist.
Jean-Francois Paren, Head of Global Market Research at Credit Agricole CIB, said: “Our short-term risk appetite indicators continue to be negative. As the epidemic worsens and the economic outlook is weak, the price adjustment of risky assets may continue. Asset prices in a few days are not optimistic, especially considering the uncertainty of the US elections. “
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