SMM News: August 2, Beijing time news, Powell neutral monetary policy remarks offset the Federal Reserve cut interest rates for the first time in a decade to boost, while weak economic data and Trump on trade relations speech made investors worried about the global economic slowdown, U. S. stocks fell in the afternoon, the Dow fell nearly 300 points within the amplitude of more than 600 points; artificial meat company Beyond Meat discount shares closed down more than 10%.
By the end of the day, the Dow was down 280.85 points at 26583.42, the S & P was down 26.82 points at 2953.56, the Na was down 64.30 points at 8111.12, and the CBOE volatility Index (VIX), a measure of market panic, was up more than 20 per cent at one point. Eight of the 11 major sectors of the S & P 500 fell and three rose, led by energy and utilities.
By Wednesday's close, the Dow was down 333.75 points at 26864.27, the S & P was down 321.80 points at 2980.38, and the Na was down 98.19 points at 8175.42. Throughout July, the Dow fell 1.21%, the Nasdaq fell 1.86%, and the S & P fell 1.50%.
Market driving force
U. S. stocks opened higher on Thursday after the Dow rose more than 310 points in the morning, but fell as much as more than 300 points in the afternoon on the back of President Donald Trump's remarks on international trade relations. In the Dow component stocks, Caterpillar (CAT) and Boeing (BA), which are greatly affected by international trade relations, generally fell. Oil prices tumbled after Trump's speech, dragging down energy giants ExxonMobil (XOM) and Chevron (CVX) in Dow stocks.
The market digests the Fed's monetary policy position. Us stocks have been volatile since the Fed cut interest rates by 25 basis points and issued a monetary policy statement on Wednesday. Us stocks fell sharply after Powell's remarks at a news conference weighed on expectations of further interest rate cuts in the future. Investors continue to digest more second-quarter corporate earnings. Just over 71% of S & P 500 companies have reported results after many companies reported results before trading on Thursday. According to data provided by FactSet, a financial information provider, the S & P 500 overall earnings are expected to fall 1.4 per cent this quarter, according to a mix of published corporate earnings data with earnings forecasts of companies that have not yet reported results.
Powell said at a news conference on Wednesday that the rate cut was "not the beginning of a long series of rate cuts," but "a policy change in a cycle." The Fed said in a statement that the weak global economy, rising trade tensions and hopes to push up inflation were among the reasons for the Fed's decision. Markets see this as a sign that the Fed will not cut interest rates sharply any time soon. In a clarification speech on Thursday, Powell said the rate cut was not necessarily a one-off event, leading markets to speculate that the Fed could still cut interest rates again this year.
The Chicago Board of options Exchange (CBOE) 's volatility index (Volatility Index, also known as the "panic index", climbed to a nearly two-month high on Thursday, rising more than 13 per cent at one point to above 18.0 for the first time since June 4. The index, which is used to weigh options that bet on the outlook for the S & P 500 over the next 30 days, is seen as an index that expects the stock market to fall because share prices tend to fall faster than they rise.
Overseas central banks, yesterday after the Federal Reserve cut interest rates, the United Arab Emirates, Bahrain, Saudi Arabia, Brazil and other central banks have followed suit.
The Bank of England announced an interest rate resolution on Thursday, keeping interest rates unchanged at 0.75 per cent, in line with widespread market expectations. The uncertainty about the Brexit process makes it less confident than usual about the economic outlook, the bank said. The Bank of England has no new views on the impact of Brexit without an agreement.
The Bank of England says a gradual and limited increase in interest rates is appropriate; no matter what form Brexit takes, the monetary policy response will not be automatic and interest rates are likely to move in both directions. The Bank of England also cut its GDP forecast for 2019 to 1.3 per cent, up from 1.5 per cent in May, and expected inflation of 1.9 per cent in the coming year and 1.72 per cent in May.
This is the first time the Bank of England has spoken since Boris Johnson took over as prime minister. Johnson recently announced that Britain will leave the European Union on October 31, whether or not a trade deal can be reached with the European Union. If a trade deal is not reached, the pound will fall, inflation is expected to accelerate and economic growth is bound to slow, the Bank of England said today.
Chris Williamson, chief economist at Markit, said the US manufacturing sector had entered its worst downturn since 2009, suggesting that commodity manufacturing would be a significant drag on economic growth in the third quarter.
"if the US non-farm payrolls report, due to be released on Friday, comes as a surprise to the market, it could significantly reduce expectations that the Fed will further relax monetary policy at its next FOMC meeting in September, especially if wage growth exceeds market expectations." Hussain said (Hussein Sayed), chief market strategist at FTO (FXTM), wrote in a research note. "therefore, if the non-farm payrolls report brings upward surprises to investors, it will become negative news for the stock market, and vice versa."
"yesterday [the Fed policy meeting] was the perfect case of the disconnect between expectations and reality." Art Hogan, chief market strategist at securities firm National Securities, wrote in a research note. "the Fed did what the bank was supposed to do, and that was an insurance rate cut. He added: "the Fed has sent a message to the outside world that the market may have overpriced interest rate cuts so many times."
Alan Zentner (Ellen Zentner), an economist at Wall Street investment bank giant Morgan Stanley, wrote in a research note released on Thursday: "the Fed has taken the smallest interest rate cut, (two members of the Federal Open Market Committee disagreed with the rate cut), and Powell's comments at the news conference disappointed the market and prompted us to lower our interest rate expectations. We expect the Fed to cut interest rates by another 25 basis points for the rest of the year and believe they are most likely to be cut in October. "
The US manufacturing index fell to its lowest level since 2016, while the export index fell to a more than three-year low. The Institute for supply Management's (ISM) manufacturing index fell to 51. 2 from 51. 7 in June. A figure above 50 means expansion; economists surveyed by Bloomberg expect a median of 52. Production indicators, manufacturing jobs and input prices all fell in July. Although manufacturing accounts for a small share of the US economy, it is expected to be a big drag on tomorrow's non-farm data for July, given the large number of jobs it can provide.
The final value of Markit manufacturing PMI in the United States in July: the first value is 50, the expected value is 50, and the real value is 50.40. Chris Williamson (Chris Williamson), chief economist at Markit, said the US manufacturing sector had entered its worst downturn since 2009, suggesting that commodity manufacturing would be a significant drag on economic growth in the third quarter. Us manufacturers' expectations for output in the coming year have fallen to their lowest level since 2012, with concerns focused on the possible adverse effects of international tensions, slowing economic growth and geopolitical escalation.
The number of initial jobless claims in the United States in the week ended July 27 (10,000): the previous value was 20.60, the expected 21.40, and the actual value 21.50. Weekly jobless claims in the United States as of July 20 (10,000): previous value 167.60, expected 167.40, actual value 169.90. The four-week average of initial jobless claims in the United States in the week ended July 27 (10,000): the previous value was 21.30 and the actual value was 21.15.
The monthly rate of construction spending in the United States in June was-0.80%, 0.30% expected and-1.30% in real terms.
The number of jobs laid off by Challenger companies in the United States in July (10,000): the previous value was 4.20, and the actual value was 3.90. Us challenger companies cut jobs at an annual rate of 12.80% in July, compared with an actual value of 43.20%.
The Bloomberg consumer confidence index for the week ended July 28: 63.70 before and 64.70 in real terms.
Us EIA natural gas stocks for the week ended July 26 (100 million cubic feet): 360, expected 582.70, real value 650.
Dunkin' Brands Group (DNKN) received attention after it announced second-quarter profits and higher-than-expected sales at the same store at its Dunkin' chain, but lower-than-expected sales at the same store at its Baskin-Robbins store.
GM's (GM) closed down about 0.5 per cent. The company's second quarter net revenue was $36.06 billion and the market expected $36.108 billion, compared with $36.8 billion in the same period last year; second quarter net profit of $2.4 billion, market expectations of $1.991 billion, compared with $2.4 billion in the same period last year; second quarter earnings per share of $1.64, market expectations of $1.44.
GM delivered 1.939 million vehicles worldwide in the second quarter, compared with 2.065 million in the same period last year. The North American division made an adjusted profit of $3.02 billion before interest and tax in the second quarter, compared with $2.7 billion in the same period last year.
Qualcomm (QCOM) 's guidance on revenue for the fourth quarter of fiscal 2019 fell short of expectations. The stock closed 2.7% lower.
Beyond Meat (BYND) plans to issue at least 3.25 million shares twice at $160 a share. The price is 18.6% below Wednesday's closing price of $196.51, but it is still more than six times the IPO price of $25 a share in early May. Beyond Meat closed down 10.4 per cent.
Yum restaurant group (YUM) closed up 3.9 per cent. The company's adjusted net profit for the second quarter was better than expected.
Amazon (AMZN) announced that it was in exploratory talks with Reliance Retail, a unit of India's Reliance Industries Group, in an attempt to acquire a 26 per cent stake in India's largest physical retailer. Amazon closed down 0.6%.
Weilai car laid off thousands of people. The company's president responded by saying that what should be done at this stage. The Weilai car closed down 5.5%.
Royal Dutch Shell's second-quarter revenue and net profit were significantly lower than in the same period last year.
Barclays' net profit attributable to common shareholders of its parent company rose sharply in the first half of the year compared with the same period last year.
Profits attributable to the company's owners fell in the second quarter from a year earlier. Rio Tinto closed down 4.5 per cent.
Chinese concept stocks closed lower on Thursday, with Baidu (US BIDU) down 2.23 per cent at $109.21, Alibaba (US BABA) down 4.31 per cent at $165.65 and JD.com (US JD) down 4.35 per cent at $28.61. calf Electric (NIU) rose 4.10 per cent to $6.85 and Tuuniu rose 3.88 per cent to $3.21. Baozun ecommerce fell 7.16 per cent to $46.06, Tiger teeth fell 7.32 per cent to $21.01, TEDU fell 8.18 per cent to $1.46 and YI fell 10.26 per cent to $3.50.
Among other Chinese stocks, Sogou rose 2.92 percent, pinduoduo rose 1.75 percent, Huami rose 1.44 percent, worry-free English rose 0.83 percent, good Future (XRS) rose 0.59 percent, Jane Technology rose 0.55 percent, CITIC Rich rose 0.53 percent, Sohu (US SOHU) fell 0.16 percent, fluency said down 0.21 percent, New Oriental fell 0.44 percent, 488 fell 1.03 percent, 58.com (US stock WUBA) fell 1.42%, Letters fell 1.51%, Zhongtong fell 1.73%, Xiaobing Technology fell 1.75%, eBay (US BITA) fell 1.84%, Cheetah Mobile fell 2.15%, NetEase (US NTES) fell 2.55%, 51 job (US JOBS) fell 2.58%, Ping Ti fell 2.60%, Bilii fell 2.64%, Youxin fell 3.64%. VIPSHOP fell 3.68%, iqiyi fell 3.93%, pleasant loan fell 4.29%, Ctrip fell 4.34%, interesting headlines fell 4.46%, Sina (US SINA) fell 4.50%, Weibo (US WB) fell 4.77%, Xunlei (US XNET) fell 4.93%, Yunmi fell 4.96%, Happy Times (US YY) fell 5.19%, Weilai fell 5.48%. Interest stores fell 5.80 per cent, Leju fell 6.23 per cent, Momo fell 6.56 per cent, Jumei (US JMEI) fell 6.61 per cent and Siku fell 6.76 per cent.
Asia-Pacific stock markets generally fell. The Nikkei index closed down 0.10 per cent at 21499.50, South Korea's KOSPI index fell 0.36 per cent to 2017.32, and Australia's S / P / ASX 200 index closed down 0.35 per cent at 6788.90.
The Shanghai Composite index closed down 0.81% at 2908.77 points, the Shenzhen Composite Index fell 0.63% to 9268.05 points, and the gem index fell 0.22% to 1573.87 points. Hong Kong's Hang Seng index closed down 0.76% at 27565.699.
The European Stoxx index rose 1.91 points, or 0.50%, to 387.68, with most sectors and major European stock markets closing higher, led by financial services stocks. Among the stock markets, the German DAX 30 rose 0.53 per cent to 12253.15 points, the French CAC 40 rose 0.70 per cent to 5557.41 points, and the FTSE 100 fell 0.03 per cent to 7584.87 points. FTSE MIB rose 0.79% to close at 21566.91 points.
Gold futures for December delivery fell $5.40, or 0.4%, to close at $1432.40 an ounce on the New York Mercantile Exchange on Thursday. The lowest intraday level was $1412.10 an ounce, the lowest level since July 25. After Trump's speech, December gold futures rose as high as $1451.60 an ounce in electronic trading, the highest level since May 2013. Silver futures for September delivery fell $22.50, or 1.4%, to close at $16.18 an ounce.
New York September West Texas Intermediate crude (WTI) futures fell $4.63, or 7.9%, to close at $53.95 a barrel, the lowest close in six weeks. This is the biggest one-day decline in the main WTI futures in four years. London Brent crude, the benchmark for international crude prices, fell more than 6 per cent to close at $60.67 a barrel, its biggest one-day drop since February 2016.
The dollar index fell 0.17 percent to 98.3900. The euro rose 0.14 percent to 1.1089 against the dollar. The pound fell 0. 06 per cent against the dollar to 1.2145. The dollar fell 1.21 percent to 107.4200 against the yen.