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With less than 24 hours until the end of the negotiations established by the Speaker of the House of Representatives, Nancy Pelosi, the market is still focusing on the progress of the negotiations of the rescue plan on Tuesday (20). The US stock market continued to rise after the market opened, and the Dow Jones Industrial Average rose more than 100 points. The Nasdaq, S&P 500 and the fiscal index rose more than 0.4%.
US bailout negotiations
Pelosi’s spokesman, Drew Hammill, tweeted Monday that the disagreement with U.S. Treasury Secretary Steven Mnuchin continues to narrow, and Pelosi is still waiting to confirm whether the two sides can approve the election before it ends on Tuesday. Ransom bill.
At the same time, the US Senate is expected to vote on a $ 500 billion epidemic stimulus bill on Wednesday (21), hoping to help small businesses affected by the epidemic. The market expects Democrats to oppose the Republican proposal on the basis of insufficient plans.
US Department of Justice Files Antitrust Lawsuit Against Google
People familiar with the matter said that the US Department of Justice will file an antitrust lawsuit against Google (GOOGL-US) on Tuesday (20), accusing Google of using its dominant position in online search engines and advertising companies to put their peers at a disadvantage in the market competition. .
The lawsuit is just the beginning of a series of antitrust investigations. The report also indicated that Texas Attorney General Ken Paxton is preparing to investigate Google’s anti-competitive behavior in the digital advertising market. Attorneys general in Iowa, Colorado and other states are also considering investigations against Google. File a broad lawsuit.
Brexit trade negotiations
To break the stalemate on the trade deal, the EU and UK Brexit negotiators are scheduled to hold talks later on Tuesday (21).
Although the UK declared that there would be no room for discussion unless the fundamental position of the EU changes, EU negotiator Michel Barnier still stated that he will strengthen the dialogue with the EU and openly discuss the legal text of the draft agreement.
US Economic Data
On Tuesday (20), the company’s housing start-up data and construction permits in September were reported for 1.42 million and 1.55 million, respectively, with monthly increases of 1.9% and 5.2%. The number of building permits in September was noted since February 2007 new highs.
At 21 o’clock on Tuesday (20) Taipei time:
- The Dow Jones Index rose 117.22 points, or 0.42%, temporarily to 28312.64 points.
- Nasdaq rose 48.59 points, or 0.42%, to temporarily report 11,527.47 points
- The S&P 500 index rose 15.37 points or 0.45%, temporarily reporting 3442.29 points
- Commissions rose 10.73 points, 0.45%, temporarily at 2396.58 points
- TSMC ADR rises 0.31% to $ 87.83 per share
- Yield on 10-year US Treasuries increased to 0.789%
- New York light crude oil fell 1.10% to $ 40.38 a barrel
- Brent crude fell 0.82% to $ 42.27 a barrel
- Gold fell 0.43% to $ 1,903.40 an ounce
- The dollar index fell 0.20% to 93.24 points
Focus actions:
IBM (IBM-US) fell 5.30% to $ 118.87 in early trading.
Q3 Key facts based on GAAP financial report:
- Reported revenue at $ 17.6 billion, a 2.5% year-on-year decrease, higher than Refinitiv’s forecast of $ 17.54 billion
- The gross profit margin reported 48%, an increase of 180 basis points, equivalent to 48% in the second quarter and 46.2% in the same period last year
- EPS quoted at $ 1.89
- Net profit was reported at $ 1.7 billion, a 2% year-on-year decrease
- Free cash flow (FCF) was $ 1.1 billion, which was less than FactSet’s forecast of $ 226 million, which was a one-quarter low since 2001
- Accumulated FCF USD 10.8 billion in 12 months
Q3 Key facts based on non-GAAP financial reports:
- Adjusted EPS is reported to be US $ 2.58, a 4% annual decrease, which is in line with Refinitiv’s average expectation of US $ 2.58
- Net profit was reported at $ 2.3 billion, a 3% year-on-year decrease
- Gross profit margin reported 49%, an increase of 160 basis points
Baoqiao (PG-US) was up 2.50% in early trading to $ 145.46.
Key data based on GAAP financial report for fiscal 2021 Q1:
- Reported revenue of $ 19.32 billion, an annual increase of 9%, better than Refinitiv’s forecast of $ 18.38 billion
- Net income was reported at $ 4.28 billion, an annual increase of 19%
- Diluted EPS was reported at US $ 1.63, better than the US $ 1.36 in the same period last year and better than the US $ 1.42 expected by Refinitiv.
Financial forecast for fiscal year 2021:
- Revenues: 3% to 4% growth, better than previously expected from 1% to 3%
- Basic EPS – an increase from 5% to 8%, better than previously expected from 3% to 7%
- Stock buyback scale: $ 7 billion to $ 9 billion, greater than the previously expected $ 6 billion to $ 8 billion
Intel (INTC-US) fell 0.37% in early trading to $ 54.38.
Several foreign outlets reported that Intel agreed to sell its NAND memory chip business to South Korea’s SK Hynix for a $ 9 billion cash transaction, including its solid state drives, NAND parts and wafers business, and Sin However, at Intel’s factory in Dalian, China, Intel will retain the previous Optane memory technology, developed jointly with Micron.
SK Hynix stated that the goal is to obtain government approval in the second half of 2021 and complete the acquisition in March 2025.
Daily key economic data:
- The number of building permits in the United States in September reported 1.55 million, it is expected to be 1.52 million and the previous value of 1.47 million.
- The monthly growth rate of US building permits in September reported 5.2%, expected 3.0%, previous value-0.9%
- The number of new homes started in the United States in September reported 1.42 million, which is expected to be 1.452 million, and the previous value was 1.416 million.
- The monthly growth rate of new homes started in the United States in September reported 1.9%, expected 2.5%, previous value-5.1%
Wall Street Analysis:
Peter Dixon, an economist at Commerzbank, said: “Some kind of transaction has to be reached and the most likely outcome is that they have to do something. Given the state of the epidemic, the US economy needs some support and the market needs some kind of support. support for”. We really ran out of time for formal orientation! “
National Australia Bank strategist Rodrigo Catril said: “The US economic stimulus negotiations are still in progress, making the prospects for a new round of aid measures before the elections are even grimmer. ” An agreement was reached a few days ago, although the market still maintains the idea that a new round of plans will be released, at this point it seems that this will only happen after the elections.
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