US stocks rose 0.5 percent on a mixed day, or the Fed could adjust its debt buying plan

category:Finance
 US stocks rose 0.5 percent on a mixed day, or the Fed could adjust its debt buying plan


Peter Cardillo, chief market economist at Spartan capital securities, said the positive news about the economy and vaccines had been included in the price, and the stock market would continue to rise, but gains could be limited.

The series of economic data are mixed. The revised GDP growth in the third quarter of the United States increased by 33.1%

The series of economic data released on Wednesday was mixed. The number of new jobless claims for the week ended November 21 was 778000, higher than market expectations of 733000 and 742000, according to the labor department.

Meanwhile, the seven day average of new confirmed cases in the United States has reached 174000, with the death toll in a single day breaking through 2000 for the first time since May, according to Reuters. Huang Yanzhong, a senior global health researcher at the Council on foreign relations and a professor at the school of foreign affairs and international relations at Seton Hall University, said in an exclusive interview with first finance reporter that group gathering and cross state transmission will undoubtedly make the epidemic situation escalate again. Especially, the proportion of asymptomatic infected people will exceed 50%, and it can be expected that the number of daily increasing cases will exceed 200000 in the near future, The epidemic will not reach its peak until mid January.

The U.S. Department of Commerce released the second reading data of GDP in the third quarter. The revised annual rate of real GDP was 33.1%, the expected value was 33.1%, and the previous value was 33.1%. Personal consumption expenditure, accounting for about 70% of the total economic volume, increased by 40.6%, 0.1 percentage point lower than the initial value; in October, personal expenditure increased by 0.5% month on month, better than the expected value of 0.4%; durable goods orders in October increased by 1.3%, higher than the expected value of 0.5%.

Morgan Stanley raised its GDP forecast for the fourth quarter to 5.6% from 4.3%. The bank expects consumer spending to fall for two months in a tough winter, and the consumer market will regain momentum as the spring comes and vaccines are widely distributed.

Federal Reserves November minutes: if necessary, it may adjust its bond buying plan

The minutes of the Federal Reserves November meeting showed that members spent a long time discussing whether to adjust the asset purchase plan to provide more support for the economy, but there was no clear time point for the adjustment policy. Since June, the Federal Reserve has purchased $80 billion of treasury bonds and $40 billion of mortgage-backed securities every month. According to the minutes, the Fed will continue to buy these bonds in the coming months. If necessary, it may accelerate the purchase speed or extend the purchase period. The policy direction will be linked with the economic results. It is expected that policy makers will announce adjustment measures during the December meeting.

Change of individual stocks

According to a person familiar with the matter quoted by foreign media, enterprise software company salesforce plans to acquire slack, an office software company, which will become the largest single acquisition in the companys history. The transaction is still in the negotiation stage, and it can be concluded as soon as next week. The price of the transaction is not clear at present. Slack rose 37.6% on Wednesday to $23.2 billion, while salesforce fell 5.4% to $191.5 billion.

Gap, a clothing brand, plummeted by 19.6% after the financial report was released. According to its three quarterly reports released before trading on Wednesday, the company recorded 3.99 billion US dollars, which was the same as last year, with a profit of 95 million US dollars, a year-on-year decrease of 32% and a 5% increase in the same store sales. During the period, gap added 3.4 million online users, making online sales soar 61%, accounting for 40% of the total sales. The double-digit drop in sales of its brand Banana Republic, combined with the companys high marketing spending, contributed to the sharp fall in its share price. European stocks and crude oil stocks were mixed. Britains FTSE 100 index fell 41.1 points, or 0.6%, to 6391.1; Germanys DAX index closed almost flat; Frances CAC40 index rose 12.9 points, or 0.2%, to 5571.3. WTI crude oil futures for January delivery rose 80 cents, or 1.8%, to close at $45.71/barrel; Brent crude oil futures rose 47 cents, or 1%, to close at $48.33/barrel.

Gap, a clothing brand, plummeted by 19.6% after the financial report was released. According to its three quarterly reports released before trading on Wednesday, the company recorded 3.99 billion US dollars, which was the same as last year, with a profit of 95 million US dollars, a year-on-year decrease of 32% and a 5% increase in the same store sales. During the period, gap added 3.4 million online users, making online sales soar 61%, accounting for 40% of the total sales. The double-digit drop in sales of its brand Banana Republic, combined with the companys high marketing spending, contributed to the sharp fall in its share price.

European stocks and crude oil

European stocks were mixed. Britains FTSE 100 index fell 41.1 points, or 0.6%, to 6391.1; Germanys DAX index closed almost flat; Frances CAC40 index rose 12.9 points, or 0.2%, to 5571.3.

WTI crude oil futures for January delivery rose 80 cents, or 1.8%, to close at $45.71/barrel; Brent crude oil futures rose 47 cents, or 1%, to close at $48.33/barrel.