U.S. bank stocks have released financial reports one after another. The performance of each bank in the last quarter was mixed. The largest bank in the United States, JPMorgan Chase, led the decline in bank stocks. The bank warned that the economy will moderate this year. The sharp drop in stock prices also weighed on the Nasdaq.
Before the deadline, the Dow Jones Industrial Average fell more than 70 points or nearly 0.2%, the Nasdaq Composite Index fell nearly 70 points or nearly 0.6%, the S&P 500 Index fell nearly 0.6%, and the Philadelphia Semiconductor Index fell nearly 0.9%.
Banks on Wall Street announced their financial reports one after another today. Among them, JPMorgan Chase (JPM-US), the largest bank, despite its outstanding performance in the previous quarter, expected its net interest income this year to be lower than analysts’ expectations. The pre-market stock fell nearly 3%. Shares of Bank of America (BAC-US) and Wells Fargo (WFG-US) also fell after reporting earnings. Shares of Citigroup (C-US) tumbled briefly after reporting a drop in fourth-quarter profit, but pared losses.
In terms of other individual stocks, Tesla (TSLA-US) shares fell sharply before the market after the announcement of price cuts in European and American markets, which also dragged down peer Rivian Automotive (RIVN-US). In addition, Delta Air Lines (DAL-US) performed poorly in the last quarter’s financial report, and its share price fell accordingly.
The U.S. dollar index was steady and U.S. 10-year Treasury yields were higher. Elsewhere, Japanese media reported that Bank of Japan officials will assess the side effects of ultra-loose monetary policy at next week’s policy meeting. The Bank of Japan is reported to have seen unexpected interest rate moves despite adjusting its tolerance range for yields last month. The central bank will consider adjusting its bond-buying operations and further adjust policy if necessary.
The U.S. Consumer Price Index (CPI) report released yesterday showed that inflation continued to cool down. The market believed that the report would help the Federal Reserve (Fed) to reduce the rate hike at its next meeting.
Jeremy Siegel, a well-known finance professor at the Wharton School of the University of Pennsylvania, said that the Fed now needs to end its aggressive tightening policy, that is, stop raising interest rates. He noted that housing prices are falling rapidly but are likely to lag the official CPI by about 18 months. He estimates that lagging house prices mean the CPI may be about 0.3% to 0.4% higher than it really is, while warning that restrictive interest rates could tip the economy into recession.
International Monetary Fund (IMF) Managing Director Georgieva (Kristalina Georgieva) said a few days ago that the IMF may not lower its forecast for global economic growth of 2.7% this year. He also mentioned that there is more and more evidence that the United States can avoid a recession this year and achieve a “soft landing” of the economy, and that even if the U.S. economy enters a technical recession, it will only be mild.
As of 22:00 on Friday (13th) Taipei time: Focus stocks:
Virgin Galactic (SPCE-US) rose 11.15% in early trade to $5.13 per share
The space tourism company Virgin Galactic (Virgin Galactic) announced that its power jet carrier “VMS Eve” upgrade plan has been completed. It is estimated that the carrier will undergo ground testing next week and then start flight testing. The second season begins. The news spurred the stock to surge more than 13% pre-market.
Tesla (TSLA-US) fell 4.34% in early trade to $118.20 per share
Shares of U.S. electric vehicle leader Tesla fell nearly 6% pre-market after Wall Street investment bank Guggenheim downgraded the stock to “sell” from “neutral” amid concerns over Tesla’s fourth-quarter earnings (sell). Tesla recently announced on its website that it would lower the price of electric vehicles in the United States and Europe, and its stock fell 65% last year.
Lockheed Martin (LMT-US) fell 2.96% in early trade to $448.05 per share
Wall Street investment bank Goldman Sachs downgraded Lockheed Martin (Lockheed Martin) stock price from “neutral” to “sell” and lowered its target price from $56 to $33 per share. The bank noted that the defense contractor is vulnerable to changes in the government budget.
Today’s key economic data: The monthly rate of the US export price index in December last year was – 2.6%, expected – 0.5%, the previous value – 0.4% The monthly rate of the US import price index in December last year was reported at 0.4%, expected – 0.9%, the previous value – 0.7% The initial value of the U.S. consumer confidence index in January is expected to be 60.5, the previous value is 59.7 Wall Street analysis:
Mark Haefele, chief investment officer of UBS Global Wealth Management, wrote in the report that the recent report conveyed good news that inflation will continue to moderate, which may allow the Fed to slow down the rate hike to 1 yard (25 basis points) next month, instead of the previous one. Aggressive moves all the way. However, he warned that it is still too early to see the Fed’s policy shift, and the conditions for the continued rise of US stocks are not yet available.
The team led by Michael Hartnett, a strategist at Bank of America, wrote in a report that U.S. stocks will usher in a new round of decline, and finally rebound this year when economic conditions stabilize in the second half of this year. In the report, the S&P 500 was expected to fall nearly 10 percent before rebounding 17 percent.