Saturday , April 1 2023

Stocks Increase As China's Stimulus, Netflix-led Technology Rally Compensates Unsatisfactory JPMorgan Results


On Tuesday, US stocks were flirting with S&P 500 with a carefully scanned 2600 level, as news of new incentive measures from China and a lack of rally compensation from major US banks, including the Dow component JPMorgan Chase & Co.

Analysts have pointed out that if the large index index is able to gain a stable position above 2600, it is a sign that the market has successfully digested most of the sales pressures that contributed to the stock market's rapid sale in December.

How are the key criteria achieved?

Dow Jones industry average

DJIA + 0.49%

increased by 90 points or 0.4% to 24,000, while the S&P 500 index

SPX + 0.91%

reached 20 points or 0.8% to 2.602. Nasdaq Composite Index

NQH9, + 1.89%

has reached 95 points or 1.4% to 7.001. If technology-oriented Nasdaq maintains a height, then after December 13, the first finish will be over 7,000.

What is the market driving force?

The Chinese People's Bank said it would step up its efforts to stimulate their economies by improving access to credit for small businesses and the promise of the Chinese Ministry of Finance to cut taxes and increase infrastructure costs that boosted market sentiment.

The comments come from China's weaker-than-expected trade figures in the day, underlining concerns that the country's economy has been blocked during a recession, which could affect global expansion between long-term tariff dispersion between China and the US.

See: According to trade data, China's growth problems are rising again

Both the technology and communications services sectors were in rally mode with an increase of 1.5%. Netflix Inc.

NFLX, + 6.59%

Shares increased by more than 6% after the video streaming company said it would raise US prices by 13% to 18%, the largest increase since the launch of the streaming service 12 years ago.

To read: Major things expected (most) FAANG stocks in 2019

In the US, Prime Minister Teresa May intends to leave the European Union with a deadline of March 29, mostly rejected by Parliament, causing more uncertainty, as the country is struggling to find an orderly exit from the block. By defeating the defeat, 432 members voted against the May proposal, while 202 voted in favor.

See: The British Parliament rejects Prime Minister May Brexit's agreement

Upside may be limited JPMorgan Chase's The Fourth Quarter Profit Report, which showed that financial ratios are lower than analysts' earnings and earnings estimates. Bad earnings are derived from Citigroup's weaker-than-expected outcomes, driven by the poor performance of fixed income and currency trading, and may raise concerns about the vitality of the US economy as well as banks' ability to cope with volatility.

In December, wholesale inflation fell by 0.2%, driven by lower gasoline prices. Compared to the previous month, the prices of raw materials increased by 2.5% compared to the previous month, and in July of the previous year – by 3.4%.

According to the New York Federation, the Empire State Index, which follows production activity in the state of New York, fell sharply in January to 7.6 points to 3.9. According to the Econoday survey, it is well below the expectations of 12 economists.

Hopefully, the Federal Reserve System is growing at a slow pace, thanks to comments from Canadian President Esther George, this year's federal open market committee with voting rights, and one of the central bank's most credible promoters.

George spoke that "it might be a good time to stop" the hike in the cycle to allow the Fed to get its bearings.

What is Strategic?

In China, the cavalry came to strengthen policy-makers' support for the economy, said Brendan Ahern, chief investment officer at Krane Funds Advisors.

Finance Minister Assistant Xu Hongcai said there would be significant tax cuts and support for small and medium-sized enterprises, and PBOC Deputy Zhu Hexin said the bank would adopt a "more flexible monetary policy" in the light of China's "difficult" economic reality, according to Ahern.

In addition to the central bank and the Ministry of Finance, Prime Minister Li Keqiang also talks to the Council of the People's Republic of China repeatedly stressing that while the country is facing a difficult environment, officials are ready to support the economy.

JP Morgan's profit shortage was similar to that of Citigroup on Monday as it was driven by a sharp decline in capital market operations, rather than a loan to households or corporations, CEO Axel Pierron, capital market management consultant, wrote: Note. "The situation is closely linked to market conditions, especially in the bond market," he wrote.

What stocks are concentrated?

Shares. T. UnitedHealth Group Inc.

UNH, + 3.29%

rose 2.7% after the health insurer reported better than expected earnings and earnings.

Shares. T. Wells Fargo & Co.

WFC, -1.84%

1.9%, after the fourth quarter profit was lower than expected.

J.P. Morgan

JPM, + 0.84%

which also reported unsatisfactory results recovered from a fall of 0.5%.

Shares. T. Delta Air Lines Inc.

DAL -0.03%

fluctuating trading declined by 0.2% after the company performed better than its fourth-quarter earnings, while at the same time achieving Wall Street's revenue forecasts.

Sherwin-Williams Co..

SHW, -4.45%

Stocks dropped by 4.3% after the company warned that the whole year's earnings have not met the guidelines and analyst expectations.

Shares. T. Blue Apron Holdings Inc.

APRN + 37.50%

39% increased after the meal set company predicted it would reach profitability after the adjusted Ebitda base in the first quarter and 2019.

Shares. T. CVS Health Corp..

CVS, -2.26%

According to the company, slipped 2.3% Walmart Inc.

WMT, + 1.30%

has decided to leave its Pharmaceutical Benefits Management Network.

How are other markets traded?

Asian markets almost completely exceeded Japanese Nikkei

NIK + 0.96%

Hong Kong Hang Seng Rising 1%

HSI, + 2.02%

index, adding 2%, and Shanghai Composite

SHCOMP, + 1.36%

the index increases by 1.4%.

In Europe, most stocks were made by Stoxx Europe 600

SXXP, + 0.35%


Crude Oil

CLG9, + 3.07%

rally, gold

GCG9, -0.13%

prices were lower and the US dollar

DXY, + 0.40%

to trade higher.

– Mark DeCambre participated in this report

Providing important information for the US Trade Day. Subscribe to MarketWatch's free newsletter. Sign up here.

Source link