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As the US general election is about to enter the final stage, US stocks opened on Thursday (5) and rose. The Dow Jones Industrial Average rose more than 400 points or 1.5% in early trading Thursday, the S&P 500 Index rose 1.6%, the Nasdaq Index rose 1.7% and rates rose 3% . Optimistic about the outbreak of 5G demand going forward, Qualcomm rose by more than 13% in early trading.
After Biden won in Michigan and Wisconsin, the market seems to be weighing the outcome of Biden’s election as president and Republican control of the Senate. Because Democrats failed to fully control Congress, Biden increased taxes and toughened up technology. The prospect of industry regulation seems unlikely, allowing Wall Street to breathe a sigh of relief.
Tech stocks continued to lead the rise at the open on Thursday (5). Apple (AAPL-US) was up 2.24% in early trading, Amazon (AMZN-US) was up 2% and Alphabet (GOOGL-US) was up 0.74%.
When the electoral situation is stagnant and the bailout plan is hopeless in the short term, investors hope that the Fed may announce more support for the US economy at a subsequent interest rate meeting, but the market is still waiting for the Fed to break. stop.
Neel Kashkari, the chairman of the Minneapolis Fed, who is “super moderate,” will not be present at this meeting, and Mary Daly, the chairman of the San Francisco Fed, will vote on his behalf. Kashkari opposed the decision to keep interest rates unchanged at the September meeting, and recently noted that the momentum of the recovery has slowed and called on the government to adopt more fiscal stimulus to support the economic recovery.
At 21 o’clock on Thursday (5) Taipei time:
- The Dow Jones Index rose 421.37 points, or 1.51%, temporarily to 28,269.03 points.
- Nasdaq climbed 194.65 points, or 1.68%, to 11,785.43 points temporarily
- The S&P 500 Index rose 54.41 points, or 1.58%, to 3,497.85 points temporarily
- Commissions and media rose 68.76 points or 2.88%, temporarily to 2,452.98 points
- TSMC ADR rises 0.39% to $ 89.80 per share
- Yield on 10-year US Treasuries fell to 0.765%
- New York light crude oil fell 0.64% to $ 38.90 a barrel
- Brent crude fell 0.39% to $ 41.07 a barrel
- Gold rose 1.74% to $ 1,929.20 an ounce
- The US dollar index fell 0.76% to 92,700 points
Focus actions:
Qualcomm (QCOM-US) rose 13.09% to $ 145.85 in early trading.
Fourth Quarter 2020 (End of Sept. 27) Based on Key GAAP Earnings Data
- Revenue reported US $ 8.3 billion, an increase of 73% annually
- Net income before taxes (EBT) reported $ 3.3 billion
- Net profit was reported at US $ 2.96 billion, less than last year’s net profit of US $ 2.149 million
- Diluted EPS was reported at $ 2.58 per share, significantly better than $ 0.42 in the same period last year.
Based on non-GAAP
- Revenue reported US $ 6.5 billion, an annual increase of 35%, slightly above the US $ 5.9 billion expected by FactSet.
- Net income before taxes (EBT) reported US $ 1.86 billion, an annual increase of 78%
- Net profit was reported at $ 1.67 billion, an annual increase of 76%.
- Diluted EPS was reported at US $ 1.45 per share, an increase of 86% annually, higher than FactSet’s forecast of US $ 1.17.
Forecasts and financial perspectives for the first quarter of 2021
- Revenues range from $ 7.8 billion to $ 8.6 billion, an estimated 60% annual increase, better than market expectations of $ 7.14 billion.
- EPS (non-GAAP) is $ 1.95 to $ 2.15, which is better than market expectations of $ 1.69
- The QCT split is US $ 6.2 billion to US $ 6.8 billion
- QCT’s pre-tax net profit margin is 25% to 27%
- The QTL split is from USD 1.6 billion to USD 1.8 billion
- QTL’s net profit before tax is 74% to 78%
- MSM chip data and insights will not be provided starting in fiscal 2021
General Motors (GM-US) rose 3.23% in early trading to $ 36.38.
Key data based on GAAP earnings in the third quarter of 2020
- Revenues: US $ 35.48 billion, unchanged from the same period last year, slightly below the US $ 35.51 billion expected by Refinitiv
- Net profit: $ 4.05 billion, an annual increase of 74%
- EPS: $ 2.78, an annual increase of 74%
Based on non-GAAP
- Adjusted EPS: $ 2.83, an annual increase of 65%, which is significantly better than the $ 1.38 expected by Refinitiv
Merck (MRK-US) was up 2.31% in early trading to $ 82.48.
In order to expand the oncology drug product portfolio and alleviate the high dependence on Keytruda cancer therapy, Merck Group announced on Thursday (5) the acquisition of the livelihood company VelosBio for US $ 2.75 billion, and the acquisition is expected to conclude later this year.
The drugs developed by VelosBio are currently in clinical trials, mainly for the treatment of patients with hematological malignancies and solid tumors.
Daily key economic data:
- The United States reported last week (10/31) initial unemployment benefits of 751,000 and an expected 735,000. The previous value was increased from 751,000 to 758,000
- The United States reported 7.285 million renewed unemployment benefits last week (10/24), which is expected to be 7.2 million. The previous value rose from 7,756 million to 7,823 million.
Wall Street Analysis:
Brian Levitt, Invesco’s Global Market Strategist, said: “The market is more inclined to separate government. Constantly worrying about key issues like the prospect of high taxes, the color makeover, Ouji health insurance, etc., it seems be of no use. “
Anna Han, equity strategist at Wells Fargo Securities, said: “Until last week, the market was still expecting a ‘blue wave’ to sweep through the elections. Now the situation has changed and the market is changing prices. Today the market is The reason is that the Senate will maintain the status quo, which will help ease regulatory pressure on the tech industry. “
Mona Mahajan, US investment strategist at Allianz Global Investors, said: “The Biden administration cannot enact a major tax increase bill, but it is still expected to receive a new round of tax expenditures and rescue bills.”
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