After the U.S. House of Representatives Speaker Nancy Pelosi ended her visit to Taiwan, the market’s attention shifted from the tension between the United States and China, focusing on the ISM non-manufacturing index to be released next, to see whether the health of the U.S. economy is true or not. The Fed’s dovish officials turned hawks, which also attracted the attention of investors. US stocks opened higher on Wednesday (3rd).
At the time of writing, the Dow Jones Industrial Average rose more than 200 points or nearly 0.7%, the Nasdaq Composite rose more than 150 points or nearly 1.2%, the S&P 500 rose nearly 0.8%, and the Philadelphia Semiconductor Index rose more than 0.5%.
U.S. House of Representatives Speaker Nancy Pelosi ended her short visit to Taiwan today and will continue her Asia trip to South Korea. China strongly condemned Pelosi’s visit to Taiwan and announced a series of military exercises in waters near Taiwan, but investors took some comfort in the hope that Beijing’s actions would still be restrained.
While concerns over U.S.-China tensions may have eased on Wednesday, investors still faced concerns that inflation and central bank policy could affect global growth.
Regarding the US Federal Reserve (Fed), San Francisco Fed Bank President Mary Daly, Chicago Fed President Charles Evans, and Cleveland Fed President Loretta Mester have expressed their views on curbing Inflation is determined, suggesting that it is still inclined to support sharp interest rate hikes.
St. Louis Fed President James Bullard also said on the same day that the Fed may have a way to slow inflation and achieve a “soft landing” without triggering a U.S. recession.
In terms of energy, the Organization of the Petroleum Exporting Countries and its partner countries (OPEC+) on Wednesday only agreed to increase production by 100,000 barrels of crude oil per day in September, the smallest increase in the organization’s history, far lower than the increase in production in previous months, alleviating the shortage of crude oil market. The situation is limited, and the international oil price once rose.
As of 21:00 on Wednesday (3rd) Taipei time:
Stocks in focus:
Airbnb (ABNB-US) fell 4.96% to $110.58 a share in early trade
Although Airbnb’s second-quarter profit topped Wall Street expectations, revenue was in line, and it announced a $2 billion treasury stock plan, second-quarter bookings of $103.7 million were slightly below consensus estimates of $106 million. However, Citi, which is now watching demand trends in the third quarter given potential macro headwinds, lowered its price target on Airbnb to $140 a share from $160 a share, but maintained a Buy rating.
CVS Health (CVS-US) rose 3.80% to $98.99 a share in early trade
The U.S. pharmacy chain CVS announced its bright financial report for the previous quarter before the market, with second-quarter revenue of $80.64 billion and adjusted earnings per share of $2.40, beating analysts’ estimates of $76.37 billion and $2.17. Meanwhile, CVS raised its full-year earnings, forecasting full-year adjusted EPS of between $8.40 and $8.60, compared with a previous estimate of between $8.20 and $8.40.
SoFi (SOFI-US) rose 13.42% to $7.27 per share in early trade
Fintech company SoFi’s second-quarter revenue rose to $362 million from $231 million a year earlier, beating analysts’ estimates of $344 million. In addition, its second-quarter loss was up from $165.3 million a year earlier, or a loss per share. $0.48 narrowed to $95.8 million, or a loss of $0.12 per share, beating analysts’ estimates of a loss of $0.14 per share.
Anthony Noto, CEO of SoFi, said that despite the changes in political, financial and economic conditions, the business has maintained strong growth momentum. In addition, the banking franchise is also at the right time, and the economic benefits have begun to have a positive impact on the company’s operations and performance. .
Today’s key economic data: US July Markit services PMI final value at 47.3, expected 47, previous value 47 US July Markit composite PMI final value at 47.7, expected 47.5, previous value 52.3 US July ISM non-manufacturing index reported 56.7 , expected 53.5, the previous value was 55.3 The revised monthly rate of U.S. durable goods orders in June was 2%, the previous value was 1.9% The monthly rate of U.S. factory orders in June was 2.0%, the expected 1.1%, the previous value was 1.8% Wall Street Analysis:
Goldman Sachs Group strategist Sharon Bell said the stock trade did not reflect the headwinds facing the market, which he believed was a bit complacent and did not adequately consider the risks.
Xi Qiao, managing director of global wealth management at UBS Group AG, said it is difficult for stocks to see any meaningful gains at the moment, arguing that market trading will be mixed and that the market will remain volatile until there is certainty.