Intels 10percent plunge drags Dow to a halt

category:Finance
 Intels 10percent plunge drags Dow to a halt


The U.S. financial stimulus continued to run aground and corporate earnings were negative, with U.S. stocks closing mixed on Friday: the Dow fell 28.1 points, or 0.1%, to 28335.6 points; the S & P 500 index rose 11.9 points, or 0.3%, to 3465.4 points; the NASDAQ index rose slightly by 42.3 points, or 0.4%, to 11548.3 points.

Intel fell 10 percent, CEO said inventory backlog caused enterprises to reduce procurement

Intel fell 10.6%, the worst performing Dow component. Intel announced its third quarter results after trading on Thursday. The reason for the stock prices slump was that its data center business failed to meet market expectations. During the period, its revenue fell 7% year-on-year to US $5.91 billion, of which the revenue from corporate and government procurement fell by 47%, compared with the growth of more than 30% in the previous two quarters.

In an interview with foreign media, Intel CEO Bob Swan explained that after the outbreak of the epidemic, market demand dropped, resulting in overstocking, and the company decided to reduce procurement, resulting in weak performance. In the next few months, the company will consider whether to look for OEM for the products planned to be produced in 2023. At the beginning of this week, Intel announced that NAND would be sold to sk Hynix, a Korean chip company. When asked about the reasons for withdrawing from the flash business, Swan said that with the continuous growth of the semiconductor market in the past few years, Intel began to seriously consider its industry positioning, hoping to invest in products with better growth and greater technological differences, such as core CPU, GPU and AI.

At the same time, Bank of America lowered Intels rating from neutral to underperforming the market, believing that the launch of its 7-nanometer chip was uncertain, the company lacked the methods to deal with manufacturing problems, and SUPERWAY semiconductor was also seizing its market share. Intel is down 19.5% year to date.

American Expresss net profit in the last quarter was $1.1 billion, down 39% year on year

American Express also led the Dow down by 3.6%. Before trading, the company announced lower than expected third quarter results, with net profit of $1.07 billion, down 39% from the same period last year, and revenue of $8.75 billion, a year-on-year decrease of 20.4%, which mainly reflected the decrease of Credit Card cardholders expenditure and the decrease of interest rate. In the last quarter, the provision for credit losses was $670 million, down 24% year on year. By business segment, the largest decline was in global merchant and Internet service revenue, which was 27%, while that of global consumer service sector was 16%.

It is said that lufax will land on the New York Stock Exchange at the end of the month and is expected to become the largest IPO of China capital stock this year

On Friday, lufax disclosed the details of the new share issuance, and planned to issue 175 million American shares of depository receipts, with a price range of 11.5-13.5 per share. Based on this, the IPOs fund-raising amount ranges from US $2.01 billion to US $2.36 billion, which is expected to become the largest China capital stock IPO this year, and may become the largest financial technology IPO in the United States so far. Based on the post IPO share capital in the prospectus, the market value of lufax will reach US $28.1-32.9 billion. Foreign media quoted sources as saying that lufaxs target valuation reflects the impact of increased market volatility before the U.S. election, and the company hopes to have good stock price performance when it lands in the secondary market. The person also revealed that lufaxs IPO could be priced on October 29 and traded on the New York Stock Exchange on October 30.

U.S. stocks will welcome super Thursday next week, with star technology stocks released

Summing up the week, the Dow and the S & P 500 index were down 1% and 0.5% respectively after three consecutive positive sessions, while the Nasdaq was down 1.1%. Some fund managers believe that investors should avoid making bets before the November 3 election, and that US stocks will continue to lack direction in the coming week. Heavy corporate financial reports and important economic data may divert investors attention.

Next week, a third of the S & P 500 index components will be released intensively. Technology giants apple, Amazon, Facebook and Google will all release their financial reports after trading on Thursday. On the same day, the US Department of Commerce will release the first reading data of GDP in the third quarter. The market expects the economy to rebound by 32.5% in the third quarter.

European stocks and crude oil

European shares closed higher on Friday, but worries about the epidemic lingered, with European equity markets falling the most weekly in a month. As of Fridays close, Germanys DAX index was up 102.7 points, or 0.8%, at 12645.8 points; the UK FTSE 100 index was up 74.6 points, or 1.3%, to 5860.3 points; Frances CAC40 index was up 58.3 points, or 1.2%, at 4909.6. European stocks that performed better include Barclays and Airbus. According to the financial report released on Friday, the third quarter net profit of the bank was close to $800 million, double the markets expected value. The stock closed up 7% due to the sharp reduction in the cost of damage related to the epidemic; Airbus rose 5.6%, after the company told its suppliers that it should be prepared to increase production once aviation demand recovers. WTI crude oil futures fell 79 cents, or 1.9%, to $39.85/barrel, while Brent crude oil futures fell 69 cents, or 1.6%, to $41.77/barrel. Extended reading of Guizhou interview e-commerce platform: forbid to use special supply and special supply marketing! The US court in San Francisco has rejected the US Department of justices wechat ban on Shenzhens 29.4 billion epic land for residential land, and housing prices should be lowered? Source: Wang Xiaowu, editor in charge of Finance and Economics_ NF

European shares closed higher on Friday, but worries about the epidemic lingered, with European equity markets falling the most weekly in a month. As of Fridays close, Germanys DAX index was up 102.7 points, or 0.8%, at 12645.8 points; the UK FTSE 100 index was up 74.6 points, or 1.3%, to 5860.3 points; Frances CAC40 index was up 58.3 points, or 1.2%, at 4909.6.

European stocks that performed better include Barclays and Airbus. According to the financial report released on Friday, the third quarter net profit of the bank was close to $800 million, double the markets expected value. The stock closed up 7% due to the sharp reduction in the cost of damage related to the epidemic; Airbus rose 5.6%, after the company told its suppliers that it should be prepared to increase production once aviation demand recovers.

WTI crude oil futures fell 79 cents, or 1.9%, to $39.85/barrel, while Brent crude oil futures fell 69 cents, or 1.6%, to $41.77/barrel.