Major U.S. stock indexes opened higher on Tuesday (3rd), the first trading day in 2023. A series of economic data will be released in the U.S. this week. At the same time, the Federal Reserve (Fed) will also release meeting minutes to provide more information on the future path of interest rate hikes. clue.
Before the deadline, the Dow Jones Industrial Average rose more than 80 points or nearly 0.2%, the Nasdaq Composite Index rose more than 100 points or 1%, the S&P 500 Index rose nearly 0.6%, and the Philadelphia Semiconductor Index rose 0.8%.
Major futures indexes were higher ahead of the open on Wall Street, while U.S. Treasury prices and the U.S. dollar also rose, as signs of a recovery in China boosted optimism about the global economy.
Foreign media reports pointed out that the recovery of China’s subway use suggested that new crown pneumonia infections in some of China’s largest cities may have peaked, which boosted the stock prices of Chinese companies listed in Hong Kong and the United States. Shares of Alibaba (BABA-US), Baidu (BIDU-US) and electric car maker NIO (NIO-US) were higher in pre-market trading.
Investors also piled into U.S. government bonds, betting that the Fed will slow the pace of rate hikes, with U.S. Treasuries off to their strongest start in more than two decades on Tuesday.
Equities are off to an upbeat start to the year after suffering their biggest drop since the financial crisis last year, while bonds have also slumped as central banks raised interest rates to curb inflation. Some of the pressure eased in the last few months of last year as the Fed pointed to a less aggressive path to tightening, while China’s exit from its zero-coronavirus policy also boosted sentiment.
Elsewhere, international oil prices fell under pressure from a stronger dollar, reversing earlier gains, while European gas prices slipped as persistent warm weather dampened demand. The yen briefly rose to a fresh six-month high against the dollar before paring gains.
As of 22:00 on Tuesday (3rd) Taipei time: Focus stocks:
Tesla (TSLA-US) fell 6.73% in early trade to $114.89 per share
Last year, Tesla, the leader in electric vehicles in the United States, delivered 40% more vehicles than the previous year. It also achieved a good performance of 405,000 vehicles in the fourth quarter of last year, which was better than the 308,000 vehicles in the same period of the previous year. However, both results fell short of Wall Street analysts’ expectations. Hit by logistical issues, slowing demand, rising interest rates and recession fears. Shares of Tesla fell nearly 4% before the market.
PayPal (PYPL-US) up 4.72% in early trade to $74.58 per share
PayPal rose nearly 3 percent premarket after Truist Financial downgraded its rating from Hold to Buy. Truist raised its price target on PayPal stock, saying current valuations look reasonable.
NIO (NIO-US) rose 5.74% in early trade to $10.31 per share
China’s new car-making forces NIO, Xiaopeng Motors (XPEV-US), and Ideal Automobile (LI-US) delivered a total of 48,340 vehicles in December last year, an increase of 19% year-on-year, the highest monthly sales volume in history, of which Li Auto won the championship with an annual growth rate of 51%. Although the monthly delivery performance of the three automakers did not reach the target set at the beginning of the year, the strong overall performance still boosted investor confidence. Weilai Auto rose more than 3% before the market, Xiaopeng Auto rose more than 6%, and Ideal Auto rose more than 6%.
Key economic data today: U.S. December Markit manufacturing PMI final value is expected to be 46.2, the previous value is 47.7 U.S. November construction spending is expected to be -0.4%, the previous value is -0.3% Wall Street analysis:
Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown, said investors were hopeful that supply chain problems in China would continue to ease, which could help lower inflation and boost sentiment. Traders cling to a glimmer of hope that China’s recovery could be back on track once the winter storms calm.
R “Ray” Wang, chief analyst and founder of research firm Constellation Research, recently said that although last year was a dismal year for corgi stocks, it is expected to rebound this year. He pointed out that in the long run, Apple is in a good position. In addition, China will reopen and the economy may improve in the second half of the year, including Google parent Alphabet (GOOGL-US), Amazon (AMZN-US) and Microsoft (MSFT-US) Some technology giants, including Huawei, can reap huge benefits from the growing cloud business.