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On Monday (31), the US stock market opened mixed. The Dow Jones Industrial Average fell 111 points or 0.21% and the S&P 500 fell 0.12%, both ending with their best performance since August 1980. In addition, Apple’s stock split plans (AAPL-US ) and Tesla (TSLA-US) were formally implemented after the opening on Monday (31), and both were up more than 2% in early trading.
Dow Jones Index Constituent Stock Adjustments
Replacing Pfizer (PFE-US), ExxonMobil (XOM-US) and Thor (RTX-US), Honeywell (HON-US), Amgen (AMGN-US), Salesforce (CRM-US) will officially join today. Shares that make up the Dow Jones Industrial Average fell 0.37%, 0.80% and 1.08%, respectively, in early trading.
Also, Apple (AAPL-US) and Tesla (TSLA-US) stock split plans were formally implemented after the market opened on Monday (31), increasing 2.18% and 2.22% respectively. in the first operations. The two great tech giants were divided four by one. One split and five stock splits lower the investment threshold to facilitate retail purchases.
After the stock split, United Health (UNH-US) replaced Apple as the most weighted Dow Jones stock.
China expands export controls
The Chinese Ministry of Commerce announced on Friday (28) the adjusted export control catalog, the expansion of technology export control, and the scope of the control includes personalized message sending technology for data analysis and interactive interface technology. AI. “Nikkei Shimbun” reported that the tight catalog may affect the acquisition of the US business of TikTok.
The news affected the potential buyers of TikTok Microsoft (MSFT-US), Wal-Mart (WMT-US) and Oracle (ORCL-US) fell 0.60%, 2.36% and 0.92% in the first operations .
Important economic data released this week
Several Fed officials will speak this week, among whom Richard Clarida, Fed Vice Chairman, is scheduled to publish later today.
In addition, a number of key economic data will be released this week, including Tuesday (1st) ISM Purchasing Managers Index (PMI), Wednesday (2nd), ADP “small non-farm” employment data, on Thursday (3) Japan’s initial unemployment benefits and ISM non-manufacturing PMI, as well as new non-farm jobs announced on Friday (4).
As of Monday (31) 21 o’clock, Taipei time:
- The Dow Jones Index fell 111.18 points, or -0.39%, temporarily to 28542.69 points.
- Nasdaq was up 5.82 points or 0.05% to 11,701.45 points temporarily
- The S&P 500 fell 4.08 points or -0.12%, temporarily to 3503.93 points
- Commissions and a half fell 10.57 points, or 0.47%, temporarily to 2,253.56 points
- TSMC ADR fell 2.01% to $ 78.82 per share
- Yield on 10-year US Treasuries increased to 0.731%
- New York light crude rose 0.67% to $ 43.26 a barrel
- Brent crude rose 0.07% to $ 45.08 a barrel
- Gold fell 0.03% to $ 1974.30 an ounce
- The US dollar index fell 0.25% to 92.14 points
Focus actions:
Philips (PHG-US) fell 3.39% in early trading to $ 47.58.
Due to the early suspension of the respirator contract signed in April this year by the US Department of Health, Royal Philips of the Netherlands today lowered its profit forecast for the full year.
Philips said that by the end of August, the company had provided 12,300 respirators to the US National Strategic Reserve. However, the US Department of Health and Human Services rescinded the remaining 30,700 respirator orders for no reason. . Although the move may affect the company’s finances, CEO Frans van Houten still expects to resume growth in the second half of the year and improve profitability.
United Airlines (UAL-US) fell 0.46% to $ 37.17 in early operations.
In order to boost the slow demand for travel, United Airlines announced on Sunday (30) that it will permanently cancel the cost of changing tickets for domestic flights. In the future, passengers in standard economy or premium class in the United States will not have to pay the $ 200 ticket change fee. The new policy will take effect immediately.
Aimmune Therapeutics (AIMT-US) was up 171.43% in early trading to $ 34.20.
Nestlé Group (Nestlé) announced today that it has reached an acquisition agreement of 2.6 billion dollars with the American pharmaceutical company Aimmune Therapeutics. Before this acquisition, Nestlé owned a total of 25.6% of Aimmune.
This capital acquisition is a cash transaction. Nestlé will acquire the remaining 74.4% of Aimmune’s shares at a price of $ 34.5 per share. The purchase price is 1.74 times higher than Aimmune’s closing price on Friday (27). The transaction is expected to be this year Season 4 is complete.
Daily key economic data:
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Wall Street Analysis:
Affected by inflationary comments from Fed Chairman Bauer, the 30-year US Treasury yield rose nearly 16 basis points last week to 1.50% in recent trading, 137 basis points higher than the yield on 2-year US Treasuries.
Eric Vanraes, Fixed Income Portfolio Manager at Eric Sturdza Investments, said: “We now know that the Fed will support inflation and it is no longer as tight as it used to be, so increasing yields is reasonable.”
However, Vanraes believes that the US economy is still in a difficult situation and the Fed cannot allow the curve to steep significantly, otherwise efforts to combat the epidemic crisis will be destroyed. “I think at some point we will see a correction in the stock market, but it will not collapse. This is normal good news for the market. The current level of the stock market is too high and out of touch with economic reality and corporate earnings “.
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