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The growing epidemic in Europe and the United States has affected the market’s confidence in the economic recovery. US stocks opened lower on Thursday (19). The Dow Jones industrial average fell more than 100 points or 0.4% in early trading, the Nasdaq fell 0.1% and the S&P 500 index and fees. Half fell 0.4% respectively.
In the United States, on Wednesday 18, more than 170,000 new crowns were confirmed, the cumulative number of confirmed cases exceeded 11.5 million and the death toll exceeded 250,000.
To prevent the epidemic, the City of New York will close all public schools in the city beginning Thursday the 19th and restart distance learning. Mayor Bill de Blasio said it might not reopen until next month or later. school.
Kentucky, Minnesota, Wisconsin, Illinois and other regions have adopted a new round of restrictions, including adjusting regulations for wearing masks, ordering bars and restaurants to close, and restricting private gatherings.
The increase in cases, the new blocking measures and the timing of widespread vaccination have caused the market to fluctuate this week. The US dollar rebounded from a 2-year low, gold prices fell for four consecutive days, and the yield on 10-year US Treasuries fell to 0.862%.
The International Monetary Fund (IMF) mentioned the progress of the epidemic in a report on Thursday, but also warned that some countries are losing momentum for recovery due to spike in infection rates. The epidemic crisis can eventually leave deep and unbalanced scars.
According to economic data, the number of initial jobless claims in the United States unexpectedly rebounded to 742,000 last week (11/14), which is higher than the previous value and expectations, which may exacerbate market concerns about the stagnant Economic recovery.
At 22 o’clock on Thursday (19) Taipei time:
- The Dow Jones index fell 113.14 points or -0.38%, temporarily reported 29325.28 points
- Nasdaq fell 13.95 points or -0.12%, temporarily reported at 11787.66 points
- The S&P 500 Index fell 13.32 points, or -0.37%, temporarily to 3,554.47 points.
- Commissions and a half fell 10.03 points or 0.40%, temporarily to 2,520.56 points
- TSMC ADR falls 0.78% to US $ 96.17 per share
- Yield on 10-year US Treasuries fell to 0.862%
- New York light crude oil fell 0.41% to $ 41.65 a barrel
- Brent crude oil fell 1.20% to $ 44.25 a barrel
- Gold fell 0.92% to $ 1,856.70 an ounce
- The dollar index rose 0.33% to 92.62 points
Focus actions:
Macy’s (M-US) fell 7.01% in early trading to $ 8.36.
The epidemic affected consumer spending in physical department stores. On Thursday (19), Macy’s announced its third-quarter revenue of US $ 3.99 billion, a net loss of US $ 91 million and an adjusted net loss of 19 cents. Although online sales were up 27%, still not enough to offset the drop in physical store sales, its same-store sales in the third quarter fell more than 20%.
Macy’s predicts that its own store and franchise sales will drop another 20-25% in the fall.
L Brands (LB-US) rose 15.50% to $ 38.82 in early trading.
Benefiting from the growth in sales of its Bath & Body fragrance brand, coupled with the enhancement of Victoria’s Secrets, fashion retailer L Brands announced on Wednesday (18) that its third-quarter revenue was US $ 3.06 billion, making a profit. At US $ 330 million, Adjusted EPS was reported at US $ 1.13, both better than market expectations.
Nvidia (NVDA-US) fell 0.29% in early trading to $ 535.38.
Q3 Based on key data from the non-GAAP financial report:
- Revenue reported at $ 4.726 billion, an annual increase of 57%, better than FactSet’s forecast of $ 4.42 billion
- Earnings per share were reported at $ 2.91 after dilution, an annual increase of 63%, higher than the $ 2.58 expected by FactSet.
- The gross profit margin reported 65.5%, an increase of 140 basis points over the same period last year
- Operating profit was reported at US $ 1.993 billion, an annual increase of 72%
- Net profit was reported at $ 1.834 billion, an annual increase of 66%
Q3 Key facts based on GAAP financial report:
- EPS after dilution was reported at US $ 2.12, an annual increase of 46%
- Reported gross profit margin 62.6%
- Operating profit reported $ 1,398 billion, an annual increase of 51%
- Net income was reported at $ 1,336 billion, an annual increase of 49%
- Free cash flow report of US $ 806 million
Daily key economic data:
- The United States reported 742,000 unemployment benefits last week (11/14), with an expectation of 700,000. The previous value rose from 709,000 to 711,000
- The United States reported 6.372 million renewed unemployment benefits last week (7/11), which is expected to be 6.4 million. The previous value rose from 6,786 million to 6,801 million
- Philadelphia Fed November Manufacturing Index reported 26.3, expected 22.0, previous value 32.3
- At 23:00 Taipei time, the annualized number of existing home sales in the United States in October will be released, which is expected to be 6.44 million homes and the previous value was 6.54 million. .
- At 23:00 Taipei time, the monthly growth rate of existing home sales in the United States will be announced in October, which is expected to be -1.6%, and the above value is 9.4%
Wall Street Analysis:
Melda Mergen, deputy director of global equities at Columbia Threadneedle Investments, said that due to the renewed increase in the number of infections, a difficult period is expected in the coming months. However, in terms of the long-term recovery process, the new crown vaccine will be a major news milestone and a cyclical recovery. Will be back, but the road ahead is still bumpy.
Michael Hewson, chief market analyst at CMC Markets, believes that with rising infection rates and hospitalization rates, coupled with the risk that lockdown measures will be extended to 2021, the possibility that any economic losses will be become a permanent loss will only increase.
Hewson believes that to eliminate these risks, a viable vaccine must be used to counter them. Even if the vaccine is to be released next year, it can take two years for it to really work.
Hugh Gimber, global market strategist at JPMorgan Asset Management, said that the market is engaged in price wars on two different news items in two different time frames, and investors are trying to balance this out.
Gimber said the answer everyone wants to know is how quickly we can get back to normal. There are still many unfavorable factors that we do not understand. Although vaccine providers bring good news, there are many questions.
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