US stocks rebounded, Tesla soared 19percent and oil prices plunged nearly 4percent

category:Finance
 US stocks rebounded, Tesla soared 19percent and oil prices plunged nearly 4percent


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U.S. stocks rose strongly on Monday, recovering some of the losses from the previous trading days sharp sell-off, but investors remained cautious about the market rally as concerns about new crown pneumonia persisted. The Dow Jones industrial average rose 143.78 points, or 0.5 percent, to 28399.8. The S & P 500 rose 0.7% to close at 3248.92, while the Nasdaq composite rose 1.3% to close at 9273.40.

Nike led the Dow with a 3.1% increase, while Tesla LED technology stocks with a 19% surge, setting a record high of $786 in the market, with a market value of more than $140 billion. Earlier, analysts at Argus research raised Teslas target share price to $808 a share.

However, after Carnival group confirmed that a tourist had been tested positive for the new coronavirus six days after leaving the cruise ship, the U.S. stock index returned some of its early gains, and Carnival shares closed down more than 1%.

In terms of financial results, after hours, alphabet, the parent company of Google, released its fourth quarter results, with earnings per share of $15.35, higher than the expected $12.50. Operating profit in the fourth quarter was $9.27 billion, lower than the expected $9.79 billion, and revenue in the fourth quarter was $31.9 billion, slightly lower than the expected $32.04 billion. Google fell more than 5% after hours.

NXP semiconductors fourth quarter revenue is $2.3 billion, with a market estimate of $2.28 billion. Earnings per share in the fourth quarter were 40 cents, compared with 94 cents a year earlier.

U.S. stocks tumbled in the last trading day of January amid concerns that pneumonia could affect the global economy. On Friday, the Dow fell 603 points, or more than 2%. The S & P 500 also fell 1.8%, its biggest one-day decline since October.

Some analysts pointed out that the short-term uncertainty surrounding the new pneumonia is really affecting everything, and investors may continue to see some new adjustments in the market.

Keith Lerner, chief market strategist at Sun Trust Advisory, said: the U.S. stock market experienced a sharp sell-off last Friday, so its natural to rebound today, but we think this adjustment period may continue. Historically, the S & P 500s correction will last an average of 47 days, with an average decline of more than 9% over the period. The S & P 500 index began to be hit 17 days ago by concerns about new crown pneumonia, and we dont know how long those concerns will last.

Last week, travel and aviation stocks led declines, with carnival and Norwegian Cruise lines the hardest hit. Airlines such as Delta, United Airlines and American Airlines also fell. At the same time, investors also increased their holdings of US Treasury bonds, and the yield of ten-year US Treasury bonds fell to 1.505% at one time.

However, just after the S & P 500 and Nasdaq recorded their worst January performance since 2016, US equity investors seem to be starting to bargain. The S & P 500 index will continue to rise once concerns about new crown pneumonia subside and there are a lot of buying opportunities in some strong sectors, Chaijin said in a report

JPMorgan also said the recent correction was a rare opportunity for bottom reading and suggested buying shares related to the new coronavirus treatment.

But Mohamed El Erian, Allianzs chief economic adviser, advised investors not to increase their holdings for the time being, because the follow-up impact of the new crown pneumonia may not be so optimistic, and investors should try to avoid bottom hunting.

European stocks closed higher

European stocks closed higher on Monday, with the pan European Stoxx 600 index up 0.3%, led by technology stocks and the oil and gas sectors.

The FTSE 100 rose 0.55% to 7326.3, while Frances CAC40 rose 0.45% to 5832.5. Germanys DAX index rose 0.49 percent to 13045.1

Worldlines share price fell first and then rose after it announced its acquisition of Ingenico, a French payment technology company. Ingenicos share price rose about 17%.

The outlook for global crude oil demand is bleak, with international oil prices under pressure falling nearly 4%

Brent crude oil fell $2.17, or 3.8%, to $54.43 a barrel, the lowest level since January 3, 2019.

Bijan Zanganeh, Irans oil minister, said: the spread of the new crown pneumonia has hit global oil demand, the crude oil market is under pressure, the oil price has fallen below $60 per barrel, and efforts must be made to balance the oil price. Zangane also said Iran would agree to postpone the next meeting of the organization of Petroleum Exporting Countries (OPEC) if other oil producing countries agreed to cut production. To keep the balance between supply and demand in the current crude oil market, OPECs promised reduction may not be enough, and it may be necessary to further increase the reduction after March, said Hussein sayed, an fxtm analyst At present, OPEC + is considering further production reduction, and plans to hold a ministerial meeting of OPEC + from February 14 to 15. Source: First Financial Editor: Yang bin_nf4368

Bijan Zanganeh, Irans oil minister, said: the spread of the new crown pneumonia has hit global oil demand, the crude oil market is under pressure, the oil price has fallen below $60 per barrel, and efforts must be made to balance the oil price.

Zangane also said Iran would agree to postpone the next meeting of the organization of Petroleum Exporting Countries (OPEC) if other oil producing countries agreed to cut production.

To keep the balance between supply and demand in the current crude oil market, OPECs promised reduction may not be enough, and it may be necessary to further increase the reduction after March, said Hussein sayed, an fxtm analyst At present, OPEC + is considering further production reduction, and plans to hold a ministerial meeting of OPEC + from February 14 to 15.