9 Aug 2022

Last night, the three major U.S. stock indexes fluctuated lower. As of the close, the Dow rose 0.09%, the Nasdaq fell 0.1%, and the S&P fell 0.12%. The yield on the 10-year U.S. Treasury bond fell 3.17% to close at 2.75%, a difference of about -46 basis points compared with the yield on the two-year Treasury bond. The VIX, the fear index, closed up 0.66%. Brent crude closed up 1.69%. Spot gold closed down 0.04% at $1,788.49 an ounce. The dollar index remained high, closing at 106.38.

The three major U.S. stock indexes collectively opened higher, driven by the positive news of the climate bill, the solar energy, hydrogen energy, and new energy vehicle sectors opened higher. The International Energy Agency said in its July Coal Market Report that global coal consumption will rise slightly in 2022 and is expected to return to record levels of nearly a decade. Judging from the capacity utilization rate during the peak summer period, the current state of coal mine production and supply has reached a high level, the supply side has no growth elasticity, and the demand for coal is still growing. Under the premise of no obvious economic recession, the tight coal supply and demand pattern will not fundamentally change. Considering that the high profits of coal companies are expected to continue for a long time and the ratio of dividends will continue to increase in the context of high cash flow, the coal sector is ushering in the double-click of Davis in performance and valuation.

Goldman Sachs said the case for higher oil prices remained strong, with the market still running a larger-than-expected supply deficit in recent months, and cut its forecast for global oil supply excluding OPEC+ and the U.S. by 200,000 barrels each in 2022 and 2023. /day.

Ark Fund founder Cathie Wood said that Ark sold some of its Coinbase shares due to the uncertainty of cryptocurrency regulation, adding that the Federal Reserve will usher in a rate cut next year. In addition, the new round of talks on the Iran nuclear deal in Vienna has ended, and the Iranian negotiating team will return to Tehran. European officials revealed that Iran and the United States have not yet decided whether to accept the agreement, and a decision on the Iran nuclear negotiations will be made within a few weeks. The market focused on the US July CPI consumer inflation data released on Wednesday, and the three major stock indexes fluctuated lower.

According to CME's "Federal Reserve Watch": the probability of the Fed raising interest rates by 50 basis points by September is 36.5%, and the probability of raising interest rates by 75 basis points is 63.5%; The probability of 100 basis points of interest rate is 52%, and the probability of accumulative rate hike of 125 basis points is 27%.

Apple fell 0.29% after it was reported that Apple had increased its iPhone 14 stock to 95 million units and notified suppliers.

Microsoft fell 0.92%, and Microsoft Azure became Unity's cloud partner.

Google fell 0.07%, news that Google will enter the folding screen mobile phone market, Hon Hai foundry.

Amazon fell 0.99% as Amazon considers taking a 51% stake in delivery company Ecom Express for $500-600 million.

Tesla rose 0.78%, and Tesla will split 1:3 after the market closes on August 24; Musk said that if Twitter can confirm some of the content, it may continue to advance the acquisition plan.

Meta rose 1.88% after Meta agreed to delay its acquisition of VR company Within Unlimited.

Boeing rose 0.52% after submitting its first 787 Dreamliner to the FAA after it signed off on a modification and inspection plan.

GlobalFoundries rose 11.49% after Qualcomm and GF signed a long-term manufacturing agreement to extend their existing agreements for chips used in 5G transceivers, Wi-Fi, automotive and Internet of Things connectivity.

Sources from: Investing.com; Reuters.com

Louis Yap

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