Opening: waiting for the speech from the Fed Chairman US stocks opened higher on Friday – Hong Kong Sina



Sina US stock news Beijing time on the evening of the 24th, US stocks opened higher on Friday. But before the speech of Jerome Powell, president of the Federal Reserve, investors were cautious and market transactions were suppressed.

At 9:30 am on 24 August (Beijing time at 9:30 pm on 24 August) the Dow rose by 58.30 points (or 0.23%) to 25,715.28 points, the S & P 500 index rose by 6.87 points (or 0.24%) 2.863.85 points, the Nasdaq rose 33.34 points, or 0.42%, to 7.911.80 points.

From the end of Thursday, the S & P 500 index increased by 0.2% this week and may have risen for the second consecutive week. The index rose once to 2.873,23 points on Tuesday, the highest day record.

Market driver

The most important event on Friday is the upcoming speech by the Fed at the annual meeting of the Fed in Jackson Hall. Although Powell's speech probably does not differ from the position in the minutes of the Fed's meeting, he can further clarify his views on the major challenges facing the future economy. Powell begins his speech at 10 am on Friday (August 24, 2018, Beijing time).

Recently the US stock market was relatively quiet, the trade volume shrank and the trade area has shrunk because the profit season has ended, economic data is scarce and the stock market has entered a seasonally light period. In this environment, traders are more concerned about the monetary policy of the Fed and other political factors.

Before Powell gave a speech, the Fed announced the minutes of the last monetary policy meeting on Wednesday. The minutes suggest that members of the central bank generally support another rate hike in September, and many Fed officials said that as long as the US economy remains stable, "the next step in adopting a monetary policy to scrap monetary policy will soon be appropriate. "

In addition, the governor of Kansas, governor of Kansas, said that she believes that raising interest rates will be appropriate twice this year, and next year should raise interest rates several times.

Cleveland Fed President Mestre said Friday that US companies are worried about rates, but have not taken too many countermeasures.

The market is also concerned about the increasing trade strains between the United States and its major trading partners. No progress has been made in the latest trade negotiations between China and the United States. Reportedly, China continues to take revenge on US tariff measures.

This week, the most notable legal events may be related to US President Trump. Tuesday, Trump's former private lawyer, Michael Cohen, admitted that he had broken the campaign finances under Trump's orders and on the same day, Trump's former campaign president Paul Ma Paul Manafort was accused of violating eight counts, including tax fraud.

Trump recently criticized on television television that US Attorney General Jeff Sessions & # 39; never checked the judiciary. In response to Trump's criticism, Sessions issued a statement stating that he was checking the US Department of Justice on the day he was sworn in. He also said that the Ministry of Justice will not give in to political pressure. Trump is dissatisfied with the performance of the personally appointed Minister of Justice.

According to an informed source quoted by Bloomberg on Friday, the New York City attorney has taken the first steps to conduct a criminal investigation against Trump's former lawyer, Cohen, and the president's company can also be investigated .

So far, the US equity market has largely ignored the impact of political factors. But if the American foreign trade policy has more serious consequences, the uncertainties facing the United States will increase and the forthcoming interim elections will also be affected. Trump said on Thursday that if he was deposed, the US stock market would collapse, "everyone will become poor."

Economic data

As far as economic data are concerned, the US Department of Labor has announced that the initial value of durable goods orders in the US fell by 1.7% in July and is expected to fall by 1%. The previous value is 0.8%. Excluding transport-related durable goods, the initial value of US orders for durable goods increased by 0.2% in July compared to the previous month and is expected to increase by 0.5%. The previous value was 0.2%.

Majority of durable capital goods orders in the US increased more than expected in July, with the exception of non-defensive capital goods orders for aircraft that had increased by 1.4%, and mission growth remained stable, indicating that business investment in the third quarter of a strong start. As a result of fluctuations in demand for civil aircraft, durable goods orders fell by 1.7% in July compared to the previous month, which was less than expected. The tax cuts by the Trump government support business investment in equipment, but it is worrying that trade problems between the US and other countries can compensate for tax incentives.

Analyst assessment

After the release of the minutes of the Fed meeting, market analyst David Madden of CMC Markets said: "Traders expect that Powell's speaking position will be similar to the minutes of the meeting, international trade friction may damage US economic growth, but the long-term rates will relate to the US economy and what kind of significant impact the outlook has caused remains to be seen. "

Focus on shares

Autodesk (ADSK) shares rose, after the company closed on Thursday, it announced that revenues and revenues in the second quarter exceeded expectations.

Hewlett-Packard (HPQ) announced on Thursday evening that sales in the third quarter were below market expectations, but the adjusted profit exceeded expectations.

Intuit (INTU) announced that the profits in the fourth quarter of the quarter exceeded expectations, and announced that the CEO and CTO (Chief Technology Officer) of the company are planning to leave.

Brokerage SunTrust Robinson Humphrey has upgraded the Netflix (NFLX) stock rating from "hold" to "buy".

Enbridge (ENB) has agreed to purchase Spectra Energy Partners (SEP) for $ 3.3 billion in cash.

Hibbett Sports (HIBB) announced that sales in the second quarter and sales in the same store were lower than expected, while the profit forecast for 2019 was reduced.

S & P Dow Jones Indices announced on Thursday evening that Arista Networks (ANET) will become a new S & P 500 component, replacing GGP (GGP). GGP is acquired by Brookfield Property Partners LP (BPY).


Source link

Leave a Reply