Amazon and Apple successively announced strong financial reports for the last quarter, alleviating market concerns, but the inflation data favored by the Federal Reserve (Fed) rose again, and the Fed is expected to continue to promote interest rate hikes to control inflation. ) higher. Amazon rose nearly 12% in early trading, while Apple rose nearly 3%.
At the time of writing, the Dow Jones Industrial Average rose 0.18%, the Nasdaq Composite rose 1.02%, the S&P 500 rose 0.72%, and the Philadelphia Semiconductor Index fell 0.64%.
Apple (AAPL-US) reported earnings for the third quarter of fiscal 2022 after the market closed on Thursday, relying on strong iPhone sales to offset the unexpected decline in Mac performance, overall revenue and profit were better than market expectations, CEO Although some signs of weakness have been seen, Cook said revenue growth is expected to accelerate in the current quarter (Q4). On the same day, Amazon reported second-quarter revenue and an optimistic forecast.
Data released by the U.S. Commerce Department on Friday showed that the core personal consumption expenditures price index (PCE), the Fed’s favored inflation indicator, rose 4.8% in June from a year earlier, higher than market expectations of 4.7% and the previous value of 4.7%. The inflation indicator rose again. Promoted stronger interest rate hike expectations.
The Fed’s dovish representative and president of the Atlanta Fed Bank, Raphael Bostic, said that the U.S. economy is still far from entering a recession, and the Fed needs to raise interest rates further in order to control inflation. He doesn’t think the economy has slipped into recession, but pointed out that the current environment is hurting many people and that high inflation must be addressed to return the economy to a more stable and sustainable state.
Also, Bostic is sure more will have to be done on interest rates, but the exact magnitude and path will depend on data in the coming weeks and months. He also mentioned that the strong job growth shows that the economy still has strong momentum. As for the economic recession, we have not seen this yet, and the demand is still strong.
As of Friday (29th) 21:00 Taipei time:
Stocks in focus:
Amazon (AMZN-US) rose 9% to $133.26 a share in early trade
Amazon’s second-quarter revenue beat expectations, up 7% year-on-year to $121.23 billion, with a loss of $0.2 per share, mainly due to its $3.9 billion investment in electric vehicle maker Rivian (RIVN-US) negative impact on the dollar.
Roku (ROKU-US) fell 25.85% to $63.15 a share in early trade
Roku, a major streaming video equipment maker, announced after the market on Thursday that its second-quarter revenue and profit fell short of analysts’ expectations, expressing concern about the prospect of a recession, and its third-quarter earnings forecast was much lower than expected. Down, continuing the decline after the opening bell.
Intel (INTC-US) fell 10.38% to $35.59 a share in early trade
Due to cooling data center chip demand and a sharp drop in PC shipments, Intel’s second-quarter earnings report and this quarter’s financial forecast both fell short of expectations. The company also revised down its full-year revenue and profit outlook.
Today’s key economic data: US June PCE price index annual growth rate of 6.8%, expected 6.8%, previous value 6.3% US June PCE price index monthly growth rate reported 1%, expected 0.9%, previous value 0.6% US June The annual growth rate of the core PCE price index was reported at 4.8%, 4.7% expected, and the previous value was 4.7%. The monthly growth rate of the core PCE price index in the United States in June was 0.6%, and the monthly growth rate of the core PCE price index was 0.6%, which was expected to be 0.5%, and the previous value was 0.3%. 55.0, the previous value of 56.0 The final value of the US July consumer confidence index is expected to be 51.1, the previous value of 51.1 Wall Street analysis:
Geir Lode, global head of equities at Federated Hermes, believes that companies with strong balance sheets, strong cost control, and strong sales growth will outperform in the current environment, and the market is expected to favor growth stocks again, while non-value stocks.