Technology stocks dived, the NASDAQ fell 2.29percent, and gold rose 1.3percent to close to $1900

category:Finance
 Technology stocks dived, the NASDAQ fell 2.29percent, and gold rose 1.3percent to close to $1900


U.S. stocks fell on Thursday, with jobless claims rising for the first time since March last week, sparking concerns about the outlook for economic recovery and a sell-off in technology stocks dampened sentiment. By the end of the day, the Dow was down 353.51 points, or 1.31%, at 26652.23, the Nasdaq was down 2.29% to 10461.42, and the S & P 500 index was down 1.23% to 3235.66. The CBOE fear index VIX rose 7.2% to 26.08.

Individual stock performance

Intel announced its results after hours, with revenue of $19.73 billion in the second quarter, a year-on-year increase of 20%. The market is expected to be $18.55 billion, with EPS 1.23 per share and an expected $1.11. The company announced that the production time of 7 nm process CPU was delayed by about 12 months compared with the original plan. As a result, Intels stock price fell 9% after hours.

Bank of America rose nearly 1%, SEC documents show that the God of stocks Warren Buffett bought nearly 34 million shares of company stock, worth $813 million, from Monday to Wednesday at an average price of $24 A share. This increased Berkshire Hathaways stake in Bank of America from 3.6% to 11.3%, totalling 982 million shares.

Twitter rose 4.1%, the companys second quarter revenue was $683.4 million, a year-on-year decrease of 18.7%, which was lower than the market expected of $700 million. Daily living users increased by 34% to 186 million, a record high growth rate.

Tesla fell 5.0% after the company reported better than market expectations in the second quarter and made profits for four consecutive quarters. However, according to a report by Barclays analyst Brian Johnson, which previously set a target price of $300, Teslas share price is likely to begin to reverse in the fourth quarter and is unlikely to reach its 500000 vehicle delivery target this year.

Technology stocks were in the doldrums, with apple down 4.5% among the five faang giants. On the news, court documents showed that Apple was facing investigations from consumer protection agencies in many places, including Texas, and may delay the launch of its new 5g phone. Facebook, Amazon and Google fell more than 3%, while NYSE fell 2.5%.

In terms of China General stocks, Alibaba rose 0.1%, baidu fell 1.3%, Weilai automobile fell 1.9%, Jingdong and pinduoduo fell 2.1%, Tencent music fell 2.4%, vipshop fell 4.0%, iqiyi fell 6.0%.

The U.S. Labor Department reported that 1.416 million people applied for unemployment benefits last week, a three week high, ending a 15 week decline. The analysis shows that with the increasingly severe epidemic prevention situation, the United States has withdrawn the economic restart plan in many places, and the operating places such as bars and restaurants are restricted, making the labor market recovery stagnant.

U.S. Treasury Secretary manuchin said on Thursday that the republican new crown aid bill will expand unemployment protection based on about 70% salary replacement, which will be the basis of negotiations between the Republican Party and the Democratic Party. It is widely expected that Republicans will extend the duration of unemployment benefits, but the level is lower than the requirements of the Democratic Party several times. Mr. mnuchin also said Trumps wage tax cuts would not be included in the new bailout bill.

Republican McConnell, the majority leader of the Senate, subsequently announced that the Republican Party plans to announce the rescue bill plan as early as next Monday, and the trump administration needs time to review the details of the plan, which also means that unemployment benefits will be suspended after the expiration of this months 31, waiting for the final outcome of negotiations between the two parties. In the week ending July 18, the federal government paid $18.3 billion in unemployment benefits, equivalent to 30.5 million Americans receiving benefits, according to the U.S. Department of labor, whose incomes will be affected in the short term.

International gold prices continued to rally, with Comexs August gold futures up 1.3% to $1890.00/oz, approaching the record high set in August 2011.

Institutional Analysis of the reasons for the downturn of technology stocks

Adam crisafulli, an analyst at vitalknowledge, said in a report that U.S. stocks were suffering as investors sold off technology stocks. He believes that technology stocks are obviously overbought and overvalued, the market has high expectations for star stocks, and these companies may lack more reasons to support performance or share price rise.

The economic outlook has become a potential negative factor. Beth Ann bovino, the chief U.S. economist at S & P, recently published a paper saying that with the rapid rise of confirmed cases in the United States, the uncertainty of the U.S. economy is rising again. Real time economic data suggest that the US economic recovery may be losing momentum. S & Ps global economy now thinks that the possibility of a worse outcome for the US economy is 30% - 35%, higher than the 25% - 30% previously predicted, and the severe epidemic situation may further prolong the duration of the economic recession.

Investors have turned their attention to the negotiation process of a new round of fiscal stimulus bill. Michael feroli, JPMorgans chief U.S. economist, warned on Thursday that the U.S. is in danger of falling off the fiscal cliff if Congress does not introduce the stimulus plan in time, which will be a major setback for the U.S. economy.

Crude oil and European stocks

International oil prices fell on Thursday as increased U.S. crude oil inventories and market concerns about the outbreak outweighed the impact of a weaker dollar. WTI crude oil contract closed at $41.07/barrel, down 2.0%, while Brent crude oil contract closed at $43.28/barrel, down 2.3%.

Lukman otunuga, an analyst at fxtm, said the unexpected increase in US crude oil inventories last week could raise doubts about OPEC +s adjustment of the production reduction agreement earlier this month. In view of global economic expectations and the spread of the epidemic, oil prices are still facing downward risks.

European stocks eased after a high opening on Thursday. The pan European Stoxx 600 index rose 0.06% to 373.65, the FTSE 100 index rose 0.07% to 6211.44, Germanys DAX30 index fell 0.01% to 13103.39, and Frances CAC40 index rose 0.07% to 6211.44. Unilever rose 8.5%, the companys second quarter revenue and net profit were better than market expectations. After a new round of negotiations between the UK and the EU, EU chief negotiator Barnier said the two sides had no progress on key issues such as fisheries, but he insisted that the negotiations were constructive. However, Britains position made it very difficult to reach a trade agreement. British negotiator Robert Frost said that no agreement will be reached this month, and although he continues to actively seek an agreement with the European Union, he must face the possibility that no agreement can be reached. GBP / EUR bottomed up, trading around 1.2730. Source of this article: Yang Bin, editor in charge of the first finance and Economics_ NF4368

European stocks eased after a high opening on Thursday. The pan European Stoxx 600 index rose 0.06% to 373.65, the FTSE 100 index rose 0.07% to 6211.44, Germanys DAX30 index fell 0.01% to 13103.39, and Frances CAC40 index rose 0.07% to 6211.44. Unilever rose 8.5%, the companys second quarter revenue and net profit were better than market expectations.

After a new round of negotiations between the UK and the EU, EU chief negotiator Barnier said the two sides had no progress on key issues such as fisheries, but he insisted that the negotiations were constructive. However, Britains position made it very difficult to reach a trade agreement. British negotiator Robert Frost said that no agreement will be reached this month, and although he continues to actively seek an agreement with the European Union, he must face the possibility that no agreement can be reached. GBP / EUR bottomed up, trading around 1.2730.