U.S. retail data better than expected, but U.S. bond yields continue to be a year high, accelerating Inflation recovery prompted the central bank to reduce QE market concerns continue to pressure, the three major U.S. stock index on Wednesday collectively opened lower, the Dow in Verizon and other components of the support turned up in the middle of the day, Apple and other technology stocks fell, dragging down the S&P and Nasdaq failed to reverse the decline.
European stocks also continued to fall from nearly a year high under the pressure of the apparent recovery in bond market yields, Luxury goods giant Open Freight Group fell more than 7%, becoming the worst-performing Stoxx 600 constituents.
Crude Oil futures dived briefly after news broke that Saudi Arabia was considering increasing production after April, but the rally remained intact and eventually hit a new high in more than a year, while natural gas futures also continued to hit a three-month high. The dollar index hit a new intraday high of more than a week, and some industrial metals such as Gold, silver, platinum and copper fell, but tin hit a new eight-year high.
Overnight Highlights
U.S. January retail sales released before the bell rose 5.3% from a year earlier, the largest increase in seven months, the first positive year-over-year growth in four months, with all major categories growing sharply, the market was expected to increase by only 1.1% in January, the December decline was revised from 0.7% to 1%; January retail sales rose 7.4% from a year earlier, the largest increase since September 2011. The data showed that thanks to factors such as the government’s bailout checks to deal with the impact of the Epidemic, household demand rebounded following a weak performance in the fourth quarter.
The Fed released the minutes of its January meeting, the Fed policymakers noted that “the current economic environment is far from” the Fed’s long-term target level, “monetary policy needs to remain accommodative until the target is reached. In reference to the QE bond purchase program guidance, officials believe that, given that the U.S. economy is still far from the Fed’s inflation and employment targets, “it may take some Time to make substantial further progress in achieving the target. The commentary said that Fed officials believe that in the future “some time” will not meet the conditions for QE tapering, loose monetary policy will not change soon.
The media cited sources familiar with the matter, in view of the recent recovery in oil prices, February and March voluntary additional production cuts of 1 million barrels per day Saudi Arabia plans to meet in March OPEC + announced that the next few months will increase oil production, but in April will not start to increase production, and if the environment has changed, may change this plan. This Saudi intention has not been communicated to other OPEC countries. After the news came out, Brent crude oil and U.S. WTI crude oil in the U.S. before the opening of the stock market fell more than $1 in the short term.
JP Morgan analysts believe that the recent sharp rise in U.S. bond yields will not stop for a while, and that the current spike in U.S. bond yields has begun to hit risk assets, especially small-cap stocks. If U.S. bond yields are higher because the market has become optimistic about U.S. economic expectations, then the impact on the stock market is actually small, but if it is because of other factors such as reduced demand for U.S. debt, then U.S. stocks or will face serious challenges.
Media said that Fed officials privately hinted that Wells Fargo, which was hit by a fake account scandal a few years ago, they accepted the bank’s submission to revamp its risk management program. If the Fed formally agrees to the program, it would mean the bank’s most significant progress to date in lifting regulatory restrictions. The Fed punished Wells Fargo three years ago by imposing an unprecedented requirement that the bank’s assets not exceed the level at the end of 2017, and the Fed’s approval of the aforementioned corrective action plan is the second of four steps necessary to lift that restriction.
The media said that High Tide Capital spent $200 million to participate in the latest round of directed share issuance of BYD shares. BYD later said to Wall Street News that it would not comment.
U.S. stocks open lower, new bitcoin highs boost blockchain sector higher
The three major U.S. stock indexes opened lower collectively on Wednesday, with the Nasdaq Composite leading the decline. The Nasdaq opened nearly 1 percent lower and extended its early losses to more than 1.2 percent. The S&P 500 opened nearly 0.36% lower and fell more than 0.8% when it set a new daily low at the beginning of the session. The Dow Jones Industrial Average opened 37.14 points lower, down 0.12%, down more than 180 points at the beginning of the session when the new daily low, less than half an hour after the opening had a short turn up, before the Fed released the minutes at lunchtime has turned up. After the release of the minutes, the S&P and Nasdaq losses have narrowed, the Dow rose to expand to more than 100 points.
Eventually, the three major stock indexes closed up or down. The Dow closed up 90.27 points, or 0.29%, at 31,613.02 points, up three days in a row and three days in a row to set a new closing high. The S&P closed down 0.03%, the Nasdaq closed down 0.58%, both closed down for two consecutive days, falling further away from the record high set on Friday.
Dow components, Tuesday Warren Buffett’s Berkshire announced a four-quarter position in telecom provider Verizon (VZ) closed up more than 5% led, the only energy stocks Chevron rose up 3%, Home Depot rose nearly 2%, Merck rose more than 1%, while Apple, American Express fell more than 1%, Intel fell nearly 1%.
Most of the technology stocks fell, FAANMG half of the six major technology stocks closed down, Apple fell nearly 1.8% led the decline, Nifty fell about 1%, Facebook fell more than 0.1%; Amazon rose more than 1.2%, Microsoft rose more than 0.4%, Google parent company Alphabet rose nearly 0.4%. zoom fell more than 3%, Twitter fell nearly 3%; chip stocks fell collectively, Nvidia fell more than 2%, AMD fell more than 1%. AMD fell more than 1%.
Influenced by Bitcoin (BTC) continued to set new intraday record highs, a number of blockchain concept stocks rose high, Riot Blockchain (RIOT) closed up nearly 31%, Marathon Patent (MARA) rose nearly 10%, SOS, which had risen more than 30% during the day, closed up more than 8%, Jia Nan Technology (CAN) rose more than 4%.
Most of the new energy vehicles fell, Maverick Electric (NIU) closed down more than 7%, Azera and Xiaopeng car fell more than 3%, ideal car fell more than 2%, tesla fell more than 3% during the day, closed up more than 0.2%. Baidu, which will report earnings after the bell on Wednesday, had fallen more than 6% in early trading and closed down more than 5% off the record high set on Tuesday.
Among other Chinese stocks, Jingdong rose more than 4% at the beginning of the session, hitting a new intraday high, and closed up more than 3%, hitting a new closing high for the fifth consecutive day. Its Jingdong Logistics filed for a Hong Kong listing on Tuesday. Another e-commerce Poundland had risen more than 3% in early trading, closing slightly higher at its closing high.
Pan-European stock indexes in two straight losses, led by retail and technology stocks, with luxury giant Kering down more than 7 percent
Partly stemming from a surge in bond yields that spurred a sell-off in risky assets, pan-European stock indexes fell for a second straight day. The Euro Stoxx 600 closed down 0.74%, falling further away from the record closing high set on Monday since Feb. 21 last year.
Among stocks, French luxury goods giant Kering fell more than 7%, leading the decline in the Stoxx 600 stock index. Kering reported a 10.3% drop in sales for its brand Gucci in the fourth quarter of last year. Beiersdorf, the parent company of Nivea, fell nearly 6%, and the division expects that even with sales growth, it will not turn a profit this year.
Stork 600 sectors, only three Food and beverage, travel and leisure, utilities three closed higher on Wednesday, up between 0.2% and 0.4%. Declining sectors, down more than 3% of retail led the decline, down more than 2% of technology followed by financial services, construction and building materials, media, personal and household goods were down more than 1%, other sectors fell no more than 0.84%, the bottom of the decline was down less than 0.1% of telecommunications and down more than 0.1% of real estate.
Major European stock indexes fell collectively on Wednesday, Germany, Britain, Italy and Western stocks were down for two consecutive days, French stocks stopped the momentum of three consecutive days of gains. Germany’s DAX 30 index closed down 1.10%, France’s CAC 40 index closed down 0.36%, the FTSE 100 index closed down 0.56%, Italy’s FTSE MIB index closed down 1.12%, Spain’s IBEX 35 index closed down 0.38%.
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