News 2024-10-15 46

US Stocks Close: S&P, Dow Hit New Highs on Bull Market's 2nd Anniversary; Chinese ADRs Rise

The S&P 500 Index celebrates the second anniversary of the bull market, and for the first time in history, it surpassed the 5800-point mark on Friday;

The NASDAQ Golden Dragon China Index closed higher for two consecutive days;

Tesla plummeted by 8%, while Uber and Lyft showed strength;

Boeing announced a 10% workforce reduction.

October 12th news:

Last night and this morning, as this year's Q3 earnings season for US stocks started with a strong "opening red," the three major indices all closed higher. As the bull market is about to enter its second consecutive year, the S&P 500 Index set a new record for the 45th time this year, and it also surpassed the 5800-point mark for the first time in history.

As of Friday's close, the S&P 500 Index rose by 0.61%, reaching 5,815.03 points; the NASDAQ Index increased by 0.33%, reaching 18,342.94 points; the Dow Jones Industrial Average climbed by 0.97%, reaching 42,863.86 points, also setting a new historical high.In fact, looking back at the starting point of this bull market for the S&P 500 Index—October 13, 2022—it is not difficult to find that the U.S. stock market was in a rather turbulent state at that time. Before that day, the index had been intermittently falling for nearly 10 months, and the September CPI released on that day exceeded expectations by reaching 8.2%, triggering a new wave of diving and directly locking in a 75 basis point aggressive rate hike by the Federal Reserve a month later.

Advertisement

However, under the collective outbreak of financial stocks, the U.S. stock market experienced a historically rare violent reversal on that day. The S&P 500 Index plunged 2% from the opening at 3491 points and directly pulled back by more than 4%, eventually closing above 3600 points.

A day later, JPMorgan Chase led the Wall Street financial giants to hand in a quarterly report that could only be considered passable, and a new round of the U.S. stock market bull market started to wobble on the road.

We now know that the Federal Reserve added another 150 basis points to end the entire rate hike cycle, and it took a year to start cutting rates afterward. During this period, there was almost a systemic banking crisis triggered by the rapid rate hikes. At the same time, the capital craze caused by the emergence of ChatGPT has not stopped to this day, often causing concerns about "too high concentration of gains."Coincidentally, local time Friday also marks the beginning of the Q3 2024 US stock market earnings season. Just as traders were worried that interest rate cuts would weaken bank profits, JPMorgan Chase reported an unexpected increase in net interest income, while Wells Fargo's net interest income decreased, but disclosed that the decline in Q4 would be smaller than expected. The world's largest asset management company, BlackRock, announced that its assets under management had risen from $10.6 trillion to $11.5 trillion in just three months.

Affected by this, JPMorgan Chase closed up 4.44% on Friday, Wells Fargo rose 5.61%, leading the KBW Bank Stock Index to rise 3.97%, reaching a new high in two and a half years. BlackRock rose 3.63%, continuing to set a new historical high in stock price.

Driven by the overall market sentiment, Chinese concept stocks also continued to rise overnight. The NASDAQ Golden Dragon China Index rose strongly on Friday, starting with a nearly 1.5% drop, and eventually closed up 0.91%, marking the second consecutive trading day of gains.

Performance of popular stocks:

US tech giants continued to fluctuate, with Apple down 0.65%, Microsoft up 0.12%, Amazon up 1.16%, META up 1.05%, Google-A up 0.72%, Tesla, which just held a Robotaxi conference, down 8.78%, Nvidia down 0.01%, and Intel up 1.46%.

Chinese concept stocks continued their upward trend. As of the close, Alibaba was up 0.79%, Tencent ADR was up 0.98%, Pinduoduo was up 2.25%, JD.com was up 1.41%, NetEase was up 0.3%, NIO was up 0.4%, Li Auto was up 0.67%, XPeng Motors was up 1.97%, Jinko Energy was up 4.21%, Beike was up 4.04%, Futu Holdings was up 3.59%, and EHang Intelligent was up 2.71%.Other News

【JPMorgan Chase claims in a conference call: The U.S. economy has achieved a soft landing】

At the JPMorgan Chase Q3 earnings conference call held on Friday, Chief Financial Officer Jeremy Barnum told analysts that consumers continue to spend and large businesses are confident, which is the economic state that the Federal Reserve has been hoping to achieve. Barnum said, "These results are consistent with a soft landing, which is very much in line with this moderate economic condition."

Meanwhile, CEO Dimon, sitting beside him, continued to emphasize risks, stating that his concerns about macroeconomic issues and geopolitical risks remain as strong as ever, including the increasingly intense Middle East conflicts and the U.S. government's record high debt levels.

【Tesla's stock plunges 8% after its event, with Uber emerging as the winner】

The American "AI and robotics company" Tesla held an event on Thursday evening, unveiling products such as the autonomous taxi (Cybercab) and autonomous van (Robovan). However, due to the lack of technical details and highly ambiguous market launch timelines (compounded by Musk's frequent "jumping of tickets"), the company's stock closed down 8.78% on Friday. In contrast, the ride-hailing platform Uber closed up 10.81%, and Lyft rose 9.59%.Boeing to Cut 10% of Workforce, 777X Delivery Delayed to 2026

Facing a prolonged strike and an increasingly severe cash flow shortage, Boeing has announced plans to cut approximately 10% of its workforce to address the crisis. In a memo to employees, CEO Kelly Ortberg stated that the layoffs would include executives, managers, and regular employees. As of the end of 2023, Boeing had a total of 171,000 employees. Ortberg also announced that the first delivery of the already delayed Boeing 777X model will be further postponed to 2026.

Eli Lilly CEO Says Weight Loss Drug Expected to be Approved in Japan Next Year

Eli Lilly CEO David Ricks said on Friday that the weight loss drug Zepbound is expected to be approved in Japan by the middle of next year. Japan has previously approved the Eli Lilly teriparatide injection, which has the same ingredients, for the treatment of diabetes. Eli Lilly anticipates that after the weight loss drug is approved, it will continue to cooperate with Tanabe Mitsubishi for distribution in the Japanese market.

Post Comment

Your email address will not be published. Required fields are marked *+