On the last trading day of this week, Friday local time (May 20), the three major U.S. indexes staged a dramatic trend, walked out of a small V-shaped rebound, and closed mixed.
Leading technology stocks rose and fell. Tesla fell nearly 6.5% and its market value evaporated about $44 billion (about 280 billion yuan), a new low since August last year.
Another performance storm! Rose department store, a US retail discount department store chain giant, plunged more than 22%, hitting a new low in more than two years.
Popular Chinese concept stocks fell compared with the previous trading day, but one stock soared by more than 53%.
dramatic trend
Dow hit the longest consecutive week of decline in nearly a century
As the market is still worried about the U.S. economic recession and the option expiration date, the trend of U.S. stocks on Friday is like a “roller coaster” – falling all the way at the opening. The S & P 500 once fell into a bear market, the Dow fell more than 600 points, and the NASDAQ fell more than 2% at one time. At the end of the trading, there was a dramatic reversal. The three major stock indexes rose one after another, and only the NASDAQ failed to turn up at the closing.
As of the close, the Dow rose 0.03% and fell 2.9% this week, the longest decline since 1923; The NASDAQ closed 0.3% lower, with a cumulative decline of 3.82% this week, a record seven consecutive weekly declines; The S & P 500 index rose slightly by 0.01% and fell 3.04% this week, setting a record of seven consecutive weekly declines, the longest consecutive weekly decline since 2001.
In terms of constituent stocks, Cisco, which plummeted last trading day, rose 2.92% and sifus rose 2.65%, leading the Dow.
In terms of macro policy, James Bullard, the Federal Reserve’s voting Committee and “eagle king”, said that the market had re priced, in part because of the Fed’s policy. The Fed has a good plan to control inflation. He said the interest rate should reach 3.5% by the end of this year. Raising interest rates by 50 basis points is a good plan, but the data must be reviewed.
Brad also predicted that the GDP growth rate of the United States will be between 2.5% and 3% in 2022; No recession is expected this year.
Some analysts said the market was unlikely to stabilize until the Fed convinced investors that it could tighten monetary policy and curb inflation without triggering an economic downturn.
Brian Levitt, global market strategist at INVESCO, said: it is clear that in a very short time, we have shifted from epidemic panic to inflation panic, and now to serious concerns about economic growth.
Russia suddenly “cut off” Finland
Gazum, a Finnish natural gas company, announced on the 20th local time that Gazprom had informed the company that the natural gas delivered to Finland under the contract would be terminated at 7:00 on May 21, China Central Television reported.
In response to a reporter’s relevant question, Peskov, the press secretary of the Russian President, said that the Kremlin does not have information on all companies that have signed contracts with Gazprom, but an obvious fact is that no one will provide anything to anyone free of charge.
Gasum, a Finnish gas company, previously said that it refused to settle the natural gas purchased from Russia in rubles.
technology stocks were mixed
Tesla fell 280 billion
Large leading technology stocks fluctuated. Wande American Tamama technology index fell 0.68%, Amazon rose 0.25%, Apple Rose 0.17%, Google fell 1.34%, meta rose about 1.2% and Nai soared 1.56%.
Tesla closed down 6.42%, hitting a new low since August last year, with a market value of about $44 billion (about 280 billion yuan). Its intraday decline was once more than 10%. It closed at US $663.9/share, with a total market value of US $686146 billion. Tesla has fallen by more than 40% from its record high in November last year.
In addition, as of Thursday (May 18) est, Tesla has lost its position as the largest heavy stock of Casey wood flagship fund, the first time in about four and a half years.
In addition to the decline in Tesla’s share price, the flagship fund of “wooden sister” has also been reducing its holdings of Tesla in the past four quarters, with the number of shares reduced from 5.79 million to 1.59 million.
It is worth noting that Wall Street seems to be cautious about Tesla. According to statistics, according to the position data released in the first quarter, the number of newly-built Tesla institutions decreased by nearly 70% year-on-year, the number of institutions clearing positions nearly doubled year-on-year, and the world’s number one hedge fund jinqiaoshui accidentally cleared its positions.
In response to the concerns of investors, Elon Musk, CEO of Tesla, tweeted today that he was thinking about Tesla all the time and said he spent less than 5% of his time acquiring twitter. This is not rocket science!
(source: musk twitter)
another performance storm
retail discount department store chain giant Ross department store plunged by more than 22%
Following Wal Mart and target, US retail stocks have regained a performance storm.
On Friday, May 20, Eastern time, Ross stores, a giant discount department store chain in the United States, jumped to a lower opening of more than 24%, with a daily decline of nearly 25% and finally closed down 22.47%, the largest one-day decline since 1986, closing at US $71.87, a new low since March 24, 2020.
The reason for the sharp decline stems from the thunder of performance. After the last trading day, rose department store announced its first quarter results as of April 30. The results showed that the revenue, profit and same store sales growth of rose department store in the first quarter were lower than expected.
Specifically, sales revenue in the first quarter fell 4.4% year-on-year to US $4.3 billion, and analysts expect us $4.5 billion to be flat in the same period last year; Same store sales fell 7% year-on-year in the quarter, far exceeding the 2.7% decline expected by analysts.
In the first quarter, earnings per share (EPS) fell 27.6% year-on-year to $0.97, and net income fell 29% year-on-year to $388 million. Analysts expect EPS to be $1.00, down 25.4% year-on-year.
The performance guidelines also disappointed the market. It expects same store sales to fall by 4% to 6% in the second quarter, higher than analysts’ expected growth of 2.5%. The company expects the same store sales to decline by 2% to 4% in the whole year, which was expected to increase by zero to 3%; The company expects the annual EPS to be $4.34 to $4.58, down about 6% to 10.9% from the previous fiscal year.
Commenting on the performance, Barbara rentler, CEO of Ross department store, said that the external environment has proved that fiscal year 2022 is very challenging because the conflict between Russia and Ukraine has intensified the high inflation pressure that consumers have never seen in four decades.
Michael hartshorn, chief operating officer of the company, also said at the performance call that the inflation environment was far more serious than we expected at the beginning of the year.
In addition, it is worth noting that this week, American retail giants Wal Mart, target and Ross department stores all experienced a performance storm due to inflation and high costs, which brought great pressure to the market. Next week, more retail giants Costco, best buy and Macys will also announce their results. If the financial results are poor, it may trigger another wave of selling.
zhonggai shares fell
but one stock soared by more than 55%
Chinese stocks were mixed, with the NASDAQ Jinlong index falling 0.86% to close at 6387.
Among the popular Chinese concept stocks, baidu fell 0.69%, Alibaba fell 1.03%, JD fell 1.16%, meituan fell 2.45%, Netease Youdao fell 6.35% and didi fell 6.83%; Netease rose 1.59%, Weibo rose 1.03%, iqiyi, tiger teeth, BiliBili and vipshop rose more than 0.8%. Ding Dong’s vegetables fell 13.12%, shells fell 2.19% and pinduoduo fell 2.73%.
New energy vehicle “three silly” Weilai automobile fell 1.32%, Xiaopeng automobile fell 1.44%, and ideal automobile rose 0.04%.
However, one Zhongyu stock rose “Hi”! China’s real estate home Internet platform Leju soared by more than 55%. It is reported that the stock changed the ads ratio to 1 share, ads represents 10 common shares, and the circuit breaker was triggered many times in the session.
