The three major U.S. stock indexes opened slightly lower on Tuesday, then turned green under the leadership of banking stocks. The Dow rose nearly 150 points at one time, and the market dived to fall in afternoon. Investors focused on the progress of the financial reporting quarter and Global trade situation. By the end of the day, the Dow was up 32.62 points, or 0.11%, to 28939.67, the Nasdaq was down 0.24%, to 9251.33, and the S & P 500 was down 0.15%, to 3283.15.
Senate majority leader and Republican McConnell said the house of Representatives may submit impeachment provisions to the Senate on Wednesday. The Senate plans to carry out preliminary work of impeachment review later this week. The impeachment trial may start next Tuesday. McConnell revealed that the resolution of impeachment trial in the Senate will decide whether to call witnesses after the debate.
In terms of data, CPI in the United States rose 0.1% month on month in December, the lowest level in nearly three months, expected 0.2%, up 2.3% year on year, the highest level since October 2018, expected 2.4%. Wells Fargo pointed out that there was little change in the inflation trend, indicating that the Fed did not need to change its policy direction. With the recent signs of slowing wage growth, inflation expectations may be suppressed.
U.S. stock earnings season started. The three banks first announced their results before trading. JPMorgans revenue and profit were better than expected. The annual profit reached a record $36.4 billion, and the share price rose 1.2%. Citigroups fourth quarter results were also better than analysts estimates, with shares up 1.6%, boosted by a 49% year-on-year increase in fixed income business revenue. Wells Fargo Bank fell 5.39% and its revenue fell 5.3% year on year in the fourth quarter. Its profit was lower than the market expectation. Among other banking stocks, Deutsche Bank rose 1.06%, Bank of America 0.73%, Credit Suisse 0.65% and UBS 0.46%.
Boeing rose 0.65% after the company announced 380 aircraft deliveries last year, 127 of which were 737 aircraft deliveries, with a total order of 246. Meanwhile, Boeing will apply to Citibank for new loans.
FedEx rose 1.8% as Amazon lifted a ban on FedExs ground delivery service for third-party sellers.
Tesla rose 2.49% to a new record, with a total market value of nearly $97 billion. According to the compensation plan of mask in the next decade approved at the special shareholders meeting of Tesla in March 2018, if the market value of Tesla can reach $100 billion and meet the relevant requirements, mask will receive a stock award worth nearly $1 billion.
Technology stocks generally underperformed, with Netflix down 0.07%, Google down 0.58%, Amazon down 1.16%, Facebook down 1.28% and apple down 1.35%. On the news, wedbush said that apple is expected to become the first company with a market value of more than $2 trillion by the end of 2021, given the 5g downwind and the development momentum of Apples service industry in the next few years. In addition, French finance minister le Maire will communicate with U.S. finance minister nuchin on digital tax.
Chip stocks were mixed, with Broadcom up 2.32%, Kelei up 1.36%, Xilinx up 0.67%, Texas Instruments and NXP up 0.55%, Qualcomm down 0.45% and AMD down 1.10%.
In China, BiliBili increased by 4.0%, Ctrip by 2.26%, Weilai automobile by 1.62%, JD by 0.05%, Ruixing coffee by 0.22%, iqiyi by 0.46%, baidu by 1.56%, Alibaba by 1.73%, Tencent music by 1.86%, pinduoduo by 3.38%.
Analyst point of view
Sam Stovall, chief strategist at CFRA research, pointed out that on the whole, Wall Street analysts predicted that earnings per share of S & P 500 companies in the fourth quarter would fall by 2% year-on-year, which means that US stocks have entered into a profit recession, but investors should not be too nervous, because under the circumstances of a lower expectation, the overall corporate earnings situation is expected to be better than expected.
JJ kinahan, chief market strategist at TD Ameritrade, said the results of large banking stocks looked great and it was a good start for the current earnings season.
Morgan chase analyst Hunter (JasonHunter) looks at the future trend of the US stocks and thinks that the S & P 500 index needs to reach or exceed 3700 points to show the same characteristics as the previous market bubble, which means that the S & P 500 index still has nearly 13% rise.
Crude oil stabilizes and rebounds
After nearly a week of adjustment of international oil price, the market still pays attention to the situation in the Middle East and Global trade relations. By the end of the day, WTIs main crude oil contract was up 0.3% to $58.23/barrel, while Brents main crude oil contract was up 0.5% to $64.49/barrel.
According to the monthly short-term energy outlook report released by EIA, the growth rate of global crude oil demand this year is expected to increase by 80000 barrels / day to 1.34 million barrels / day, the U.S. crude oil production this year is expected to increase to 13.3 million barrels / day, the next year is expected to be 13.71 million barrels / day, the U.S. WTI crude oil price this year is expected to be $59.25/barrel, and the next year is expected to be $62.03/barrel.
European stocks closed slightly higher
European stocks ended higher, with the pan European Stoxx 600 index up 0.29% to 419.59, the FTSE 100 index up 0.06%, to 7622.35, Germanys DAX30 index up 0.04%, to 13456.49, Frances CAC40 index up 0.08%, to 6040.89, and the tourism and leisure sector leading the way, while the oil and gas sector underperformed.
Nissan said Thursday that it has not considered dissolving its alliance with Renault and Mitsubishi Motors. The alliance is the source of Nissans competitiveness. In the future, it will continue to promote activities that can benefit all parties in the alliance. Renault shares rebounded from a six-year low, up 0.4%. German chemical giant Evonik fell 4% after controlling shareholders announced a 5% sale.
British Prime Minister Boris Johnson said the British government was very likely to reach a trade agreement with the European Union by the end of the year, despite a possible fight over fishing rights. But he will prepare for the breakdown of future trade talks between Britain and the EU, but insists that is not what he expects. The UK will leave the EU on January 31 and the transition phase is planned to end on December 31. In addition to the problem of brexit, Johnson also faced pressure from Scotland. Scottish Chief Minister Stephen sturgeon said that the Scottish government would start the next step before the end of January, asking the Scottish Parliament to make the right choice for the future, and once again asking the Scottish Parliament to support the referendum. Johnson responded that he could not agree to any demands that could trigger independent elections again and would not transfer power to the Scottish Parliament, which would lead to political stagnation. Source: First Financial Editor: Yang bin_nf4368
British Prime Minister Boris Johnson said the British government was very likely to reach a trade agreement with the European Union by the end of the year, despite a possible fight over fishing rights. But he will prepare for the breakdown of future trade talks between Britain and the EU, but insists that is not what he expects. The UK will leave the EU on January 31 and the transition phase is planned to end on December 31.