China Fund News reporter Ivan
On Monday, October 16th, Eastern Time, investors were preparing for the full arrival of the third quarter financial reporting season, and there were also dove like comments from Federal Reserve officials. The market panic index plummeted, risk appetite rebounded, and the three major US stock indices collectively closed higher.
Another 668 layoffs, Microsoft's LinkedIn has launched its second round of layoffs! Microsoft rose slightly on the same day.
The world pharmaceutical giant Pfizer has significantly lowered its performance expectations, causing other vaccine stocks to plummet! Modena and BioNTech fell by over 6%, while Novavax fell by at least 6% to a six-month low.
Will be included in the heavyweight index! Sports and leisure clothing company Lululemon surged by over 10%, reaching a new closing high since November 2021.
Federal Reserve releases optimism by releasing pigeons
All three major US indices closed higher
On Monday, October 16th, Eastern Time, there was another support from the Federal Reserve's vote committee for not raising interest rates. The "Panic Index" VIX fell 10% and fell 18. The optimistic sentiment in the third quarter report of enterprises drove the collective gains of the three major US stock indices.
The US stock market opened high and moved higher, with the Dow rising nearly 420 points and briefly exceeding 34000 points. The S&P 500 index remained stable above 4300 points. As of the close, the S&P 500 index closed up 45.85 points, or 1.06%, at 4373.63 points. The Dow closed up 314.25 points, or 0.93%, at 33984.54. The Nasdaq closed up 160.75 points, or 1.20%, at 13567.98.
Philadelphia Federal Reserve Chairman Huck stated on the same day that the current interest rate level has almost stifled opportunities for those who hope to enter the real estate market for the first time. Huck stated at the annual meeting of the Mortgage Bankers Association that based on his interaction in the local area, the housing market climate can be summarized in seven words, which means' there are no first time homebuyers' Huck explained that high interest rates have pushed up costs, reduced inventory, and thus hit the real estate industry, as many people no longer want to sell their homes and encourage more potential buyers to buy new ones.
Huck also reiterated his statement made last Friday: "If there is no significant change in what I see from the data, hear from contacts, and hear from audiences like you, I believe we are at a stage where we can maintain interest rates at the current level
US Treasury Secretary Yellen said that the interest rate on US treasury bond bonds was "still controllable". Yellen stated that the US economy is in a good state and interest rates may continue to be high, but the current situation is not yet clear. She stated that the financial situation of the United States is by no means insurmountable and requires attention.
668 more layoffs
Microsoft's LinkedIn has launched its second round of layoffs!
On Monday, October 16th, Eastern Time, Microsoft's subsidiary LinkedIn announced that it would lay off approximately 668 employees, covering engineering, product, human resources, and finance teams. This is the second round of layoffs this year, and the company previously laid off approximately 700 employees in May. LinkedIn stated that it will continue to invest in strategic key areas.
Microsoft closed up 1.5% on the same day at $332.64 per share, with its latest total market value of $2.47 trillion.
Technology stocks mostly rose
On Monday, October 16th, Eastern Time, popular technology stocks rose, with Amazon up 2.12%, Meta up 2%, Microsoft up 1.51%, Google A up 1.27%, Nvidia up 1.38%, Tesla up 1.1%, and Netflix up 1.42%.
Only apples fell slightly by 0.07%. On the news side, according to Counterpoint data, due to sluggish demand for major mobile phone brands in most developed markets, the global smartphone market shrank by 8% in the third quarter, marking its worst Q3 performance in a decade. The report has raised concerns that the continued downturn in the market may affect the upcoming earnings performance of companies such as Apple. Apple's shipment volume decreased by 8% this quarter, while Samsung's sales decreased by 13%. However, the overall shipment volume of the entire industry has increased by 2% compared to the second quarter, and it may be expected to end the two-year year-on-year decline trend in the last three months of this year.
Counterpoint believes that the launch of the iPhone 15 series in September may help revive growth in developed markets such as the United States, Europe, and South Korea. The Indian holiday season, China's Double Eleven, and year-end promotions in various regions will also provide support for the market. Emerging markets have always been a bright spot, with the Middle East and Africa being the only regions to achieve year-on-year growth in the third quarter.
World pharmaceutical giants lower performance expectations
Other vaccine stocks plummeted
Last Friday (October 13th local time), the world pharmaceutical giant Pfizer significantly lowered its performance forecast, cutting its annual revenue forecast from $67 billion to $70 billion to $58 billion to $61 billion, a significant decrease of $9 billion, a decrease of approximately 12.9% to 13.4%.
On Monday, October 16th, Eastern Time, after Pfizer lowered its performance expectations, other vaccine stocks plummeted!
Modena and BioNTech fell more than 6%, Novavax fell 6% to at least a six-month low, while Pfizer's stock price rose 3.6%. Analysts believe that this is due to Pfizer's cost reduction plan and the investment bank's increase in its target price.
Will be included in the heavyweight index
Lululemon surged by over 10%
On Monday, October 16th, Eastern Time, sports and leisure clothing company Lululemon rose more than 10%, reaching a new closing high since November 2021, with the latest price of $416.64 per share and a total market value of $52.722 billion.
On the news, the company will replace Activision Blizzard as a component of the S&P 500 index.
Israeli airstrikes on the Gaza Strip
Hamas launches rockets at Israel
According to CCTV News, on the 16th, the Israeli army continued to air raid the Gaza Strip and claimed to have killed the director of the Hamas Intelligence Agency. The Palestinian Islamic Resistance Movement (Hamas) continues to fire rockets at Israel.
On the 16th, the Israeli army continued to launch airstrikes on the Gaza Strip, with explosions emanating from multiple areas and thick smoke rising. According to the Associated Press, the Israeli military carried out an air strike on the Nusairait refugee camp in the central Gaza Strip, resulting in at least 18 deaths. The Israeli Defense Forces claimed to have killed the director of the Hamas Intelligence Agency on the same day, but this news has not been confirmed by the Palestinian side.
In the afternoon of the same day, Jerusalem and Tel Aviv were hit by rockets and air defense alerts sounded. The rocket attack coincided with the opening of the winter session of the Israeli parliament, and the opening ceremony was forced to be interrupted. Entering the night, Tel Aviv once again sounded an air raid warning. On the evening of the 16th, Hamas's armed faction, the Qassam Brigade, announced that it had fired more than 100 rockets at Tel Aviv, Jerusalem, Belsheba, and Ashkelon on the same day.
Media: A US Marine Rapid Response Force
To the coastal waters of Israel
According to CCTV News, according to a report released by Israel's Jerusalem Post in the early morning of the 17th local time, on the 16th, as part of the US military's assembly operation in the area, a 2000 member US Marine Rapid Response Force went to the coastal waters of Israel.