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Close: U.S. stocks rebounded for the second day in a row, the Dow closed up 280 points.
Jul 22,2021 07:09CST
The content below was translated by Tencent automatically for reference.

In the early morning of the 22nd in Beijing, US stocks closed higher on Wednesday. The three major stock indexes rebounded for the second day in a row and completely erased Monday's losses. The excellent results of Coca-Cola (56.55, 0.72, 1.29%) and Johnson (169.49, 1.042, 0.62%) boosted market confidence.

The Dow rose 286.01 points, or 0.83%, to 34798.00; the Nasdaq rose 133.08 points, or 0.92%, to 14631.95; and the S & P 500 rose 35.63 points, or 0.82%, to 4358.69.

The index closed down 725 points, the biggest daily decline in eight months. But U. S. stocks rebounded on Tuesday, with the Dow up 550 points. The three major indexes of U. S. stocks rose for the second day in a row on Wednesday, and by the end of the day, the huge losses suffered on Monday had been completely erased.

"after Monday's plunge, Tuesday was a textbook oversold rebound," Sevens Report Research analyst Thomas Essaye said in a report on Wednesday. However, in addition to short-term volatility, for value and cyclical stocks to regain leadership, we also need to see government bond yields bottoming out and economic growth exceeding expectations. We think both of these things will happen. "

The US bond market, especially the yield on 10-year Treasuries, is increasing stock market volatility. On Wednesday, the yield on 10-year Treasuries continued to rebound, rising 7 basis points to 1.287 per cent. The yield fell to a five-month low on Monday and rebounded on Tuesday. Investors worry that the drop in Treasury yields heralds a slowdown in the economy because of the rapid spread of the Delta mutation and the possibility that the Fed may make a mistake.

Those sectors that are expected to benefit most from the reopening of the economy continued to rise on Wednesday, extending Tuesday's rebound momentum. The carnival rose by more than 9%. Las Vegas Sands (49.42, 1.64, 3.43%) rose more than 3%.

Energy stocks generally rose on Wednesday as oil prices resumed to rise.

Sentiment was boosted by earnings from Coca-Cola, a component of the Dow. The company's quarterly revenue has exceeded the 2019 level before the novel coronavirus outbreak, while raising its full-year performance guidance.

Johnson, another Dow component, reported better-than-expected second-quarter earnings and earnings, raising its 2021 guidance.

Moderna joined the s & p 500, and its shares closed 4.5 per cent higher, making the stock 20 per cent higher than it was when it was announced a week ago.

Verizon shares rose after reporting better-than-expected revenue and user growth and raising its full-year outlook.

Shares of Chipotle, a Mexican fast-food chain, surged as the company's quarterly revenue surpassed pre-pandemic levels as a large number of diners returned to restaurants after the anti-epidemic ban was lifted.

Netflix (513.63,-17.42,-3.28%) released a disappointing third-quarter subscriber forecast after Tuesday's close. The streaming giant said it expected to have 3.5 million net subscribers in the third quarter, nearly 2 million below analysts' expectations. The company also reported lower-than-expected earnings.

About 85 per cent of S & P 500 companies that have reported results beat expectations, according to FactSet.

Us stocks fell sharply on Monday amid a global growth panic triggered by the resurgence of the novel coronavirus epidemic, and reopened concept stocks on Tuesday, with US Airlines Group up 3 per cent and Norwegian Cruise up 9 per cent on the day.

Some strategists believe that the U. S. stock market will enter a period of volatility, during which there may be a deeper correction. As the Delta variant spreads, investors are grappling with concerns about inflation and a surge in new Delta variant infections in the United States.

On average, more than 35500 new cases of novel coronavirus infection have been confirmed in the United States every day in the past seven days, according to data released by the Centers for Disease Control and Prevention on Wednesday.

Matt Maley, equity strategist at Miller Tabak, said: "I think what we are seeing now is a warning signal that the stock market could pull back between late August and October."

But the data show that the surge in the number of novel coronavirus infections usually does not cause the stock market to fall for a long time. The number of novel coronavirus infections in the United States has risen sharply four times in the 14 months since the daily average of confirmed cases peaked in April last year, while the S & P remained positive.

"We expect investors' behavior to cause the market to continue to fluctuate," Rich Steinberg, chief market strategist at The Colony Group, said on Wednesday. As investors are used to buying bargains, we will follow the rebound. In a stressful world, they have also become accustomed to worrying about the economic outlook and virus outbreaks. I think this market environment is nervous, but we do not see a high degree of short-term trading. "

The U.S. Senate will hold a preliminary test vote on President Joe Biden's infrastructure bill on Wednesday. Biden introduced his broad social and infrastructure agenda to Senate Democrats after core members of the Senate Democratic caucus agreed on a key step forward with the plan.

At least 10 Republicans have pledged to vote on the infrastructure bill next week, Republican Senator Mitt Romney said on Wednesday.

Focus stocks

Asma, a lithography company, reported second-quarter results, of which net sales were 4.02 billion euros, up 22% from a year earlier and remained above 4 billion euros for the third consecutive quarter, while net profit rose 38% year-on-year to 1.03 billion euros. On average, analysts expect Q2 revenue of 4.08 billion euros and profits of 1.02 billion euros, according to Rufter. Asmai also said that net new orders reached 8.3 billion euros in the second quarter, compared with 1.1 billion euros in the same period last year and 4.74 billion euros in the previous quarter.

Netflix's second-quarter revenue of $7.34 billion was slightly higher than market expectations, but EPS's $2.97 (expected $3.14) fell short of analysts and even the company's own guidance. In addition, in terms of business data, although there is the concept of entering the game field, the increase of 1.54 million subscribers in the main streaming industry is also lower than the market expected, the slowest growth rate in more than three years, while the month-on-month decline in paying users has also been seen in North America, which is also interpreted as a sign of market saturation.

Coca-Cola sales exceeded 2019 levels, raising its full-year revenue forecast. The company's revenue was $10.13 billion, with organic growth of 37% excluding acquisitions, exchange rates and other factors, while the number of sales excluding exchange rate and price factors also exceeded the level of the same period in 2019; adjusted EPS reached 68 cents, better than expected 56 cents. Coca-Cola also raised its guidance on organic growth for the fiscal year to 12% Mel 14%, up from a "high single-digit percentage".

Johnson expects novel coronavirus vaccine sales to reach 2.5 billion US dollars this year. Johnson's revenue is $23.31 billion and is expected to be $22.21 billion, while the adjusted EPS is $2.48 and $2.27. In the financial report, the company also disclosed that the total sales of novel coronavirus vaccine in the second quarter of this year was 164 million US dollars, and the company expects the total annual sales to be 2.5 billion US dollars.

The Nasdaq (14631.9543,133.08,0.92%) exchange announced second-quarter revenue of $846 million, up 21% from a year earlier; adjusted EPS of $1.90 was better than market expectations of $1.75. Although the trading heat fell slightly from the first quarter under the influence of the economic restart, the Nasdaq Stock Exchange still welcomed 135 IPO, cases in the second quarter, of which 88 were companies and the rest were SPAC.

Morgan Chase (152.86,3.15,2.10%) awarded CEO Dimon the option award, meaning it is expected to "work for a few more years". JPMorgan Chase announced on Tuesday that it had granted CEO Jamie Dimon an option on 1.5 million shares of (Jamie Dimon) to reward the top executive for his long-term contribution to the company. Under the terms of the 10-year option, Dimon has the right to subscribe for 1.5 million shares of JPMorgan Chase at $148.73, but cannot exercise the option for five years, and he must continue to hold all shares acquired by the option until mid-2031.

Rumor has it that Apple's (145.4,-0.75,-0.51%) next-generation iPhone SE will be a 5G phone. All iPhone released by Apple from 2022 will support 5G, while the next generation of iPhone SE will be available as early as the first half of 2022, with Qualcomm (142.17,2.62,1.88%) Snapdragon x60 modems to support 5G connections, media reported on Wednesday, citing people familiar with the matter. There is also news that Apple will not launch a new version of the iPhone mini due to disappointing sales of the iPhone 12 Mini.

On July 21, local time, German chemical giant BASF (19.65,0.33,1.71%) announced that it would become the exclusive battery development partner of Cellforce, a joint venture under Porsche, to jointly develop the next generation of high-performance lithium-ion batteries. Under the cooperation agreement, BASF will provide high performance NCM (Nickel Cobalt Manganese) cathode active materials to enhance fast charge and energy density performance. Cellforce will provide high-performance batteries. In addition to performance, the cooperation between the two sides also places particular emphasis on the effectiveness of carbon neutralization, and BASF expects the carbon footprint in the production of cathode materials to be reduced by up to 60%.

According to the schedule, Tesla (655.29,-5.21,-0.79%) CEO Musk, who is controversial in the cryptocurrency field, will attend an event on Wednesday aimed at promoting institutional acceptance of cryptocurrencies with "wooden Sister" Catherine Wood, Twitter (69.54, 1.60, 2.36%) and Square founder Jack Dorsey.

Bank of America (38.46, 0.77, 2.04%) said the global supply of electric car batteries could be cut off as early as 2025. Affected by this, lithium battery plates such as Livent, Lithium Americas, Abel of the United States, Chile Mining and Chemical Industry have attracted attention.

Novartis (90.48,0.24,0.27%) second-quarter revenue and net profit increased by 14% and 55% respectively compared with the same period last year; net revenue from innovative drugs increased by 15% year-on-year.

NeuroMetrix's Quell transcutaneous nerve stimulator has been recognized by FDA as a "breakthrough therapy". The stock closed up nearly 208 per cent yesterday.

Property Solutions Acquisition announced that the general meeting of shareholders approved the future merger with Faraday, and FFIE officially landed on NASDAQ on July 22.

Revenue at Chembio Diagnostics, a diagnostic testing company, rose 25 per cent in the second quarter.

In other markets, gold futures for August delivery on the New York Mercantile Exchange on Wednesday fell $8, or 0.4%, to close at $1803.40 an ounce, the lowest closing price in two weeks. The intraday minimum is $1794.30. Silver futures for September delivery rose 26 cents, or 1%, to close at $25.26 an ounce.

(EIA), West Texas Intermediate for September delivery on the New York Mercantile Exchange, rose $3.10, or 4.6%, to close at $70.30 a barrel. Brent crude for September delivery on the London Intercontinental Exchange (120.23,1.09,0.91%) rose $2.88, or nearly 4.2%, to close at $72.23 a barrel.

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