News from the Financial Associated Press on January 26 (Editor Zhao Hao)On Wednesday (January 25), U.S. stocks fell rapidly after the market opened, and then the three major indexes began to rebound. At the end of the session, the Dow and the S&P once turned up.
As of the close, the Dow Jones index rose 0.03% to 33,743.84 points, recording four consecutive positive daily lines, and fell about 1.3% at one point during the session; the S&P 500 index fell 0.02% to 4,016.22 points, and fell about 1.7% at one point; Nasda The Gram Composite Index fell 0.18% to 11,313.36 points, after falling more than 2.3% at one point.
Deutsche Bank analyst Jim Reid said sentiment had been somewhat risk-off over the past 24 hours, partly due to some weaker-than-expected earnings reports fueling fears of a U.S. recession.
After the market closed yesterday, Microsoft executives stated on the earnings conference call that the company’s business, including smart cloud, has entered a cycle of slow growth, triggering a trend of technology stocks leading the decline at the beginning of today’s trading.
John Lynch, chief investment officer of Comerica Wealth Management, said that after seeing Microsoft negate the optimistic interpretation of the market, participants are no longer so confident in Google and other earnings reports.
More than 19% of S&P 500 companies had reported fourth-quarter results as of Wednesday’s close, with 68% of those reporting stronger-than-expected profits, the data showed.
Adam Sarhan, chief executive of 50 Park Investments, pointed out that the stronger-than-expected performance of most companies was mainly due to Wall Street’s previous lowered expectations, but in fact their prospects were bleak.
“If even companies are bearish about their futures, why should investors be bullish? That’s the message I’m taking from this earnings season,” Sarhan said.
Performance of popular stocks
The 11 sectors in the S&P 500 were mixed. The utilities sector closed down 1.36%, the worst performer, the industrial sector fell more than 0.5%, the telecom services sector fell more than 0.3%, the information technology/technology sector fell more than 0.2%, and the raw materials and consumer goods sector rose at least 0.2%, optional The consumer sector rose more than 0.5%, and the financial sector rose more than 0.7%.
Most of the large technology stocks were lower. (Arranged by market value) Apple fell 0.47%, Microsoft fell 0.59%, Google fell 2.50%, Amazon rose 0.89%, Tesla rose 0.38%, and Meta fell 1.15%.
In terms of Chinese concept stocks, the Nasdaq China Golden Dragon Index rose 0.13% to 7,989.03 points.
Popular Chinese concept stocks were mixed, Ctrip rose 2.85%, Huazhu rose 1.63%, Baidu rose 1.08%, Xiaopeng Motors rose 0.83%, Alibaba rose 0.68%, Tencent Music rose 0.35%, Pinduoduo rose 0.19% JD.com fell 0.39%, Weilai fell 0.43%, New Oriental fell 0.78%, Ideal Auto fell 0.86%, and Good Future fell 5.56%.
Tesla News
[Tesla’s fourth-quarter revenue of 24.318 billion US dollars is expected to be 24.156 billion US dollars]
Tesla’s Q4 revenue in 2022 is US$24.318 billion, market expectations are US$24.156 billion, US$17.719 billion in the same period last year; free cash flow in the fourth quarter is US$1.42 billion, estimated at US$3.13 billion; adjusted earnings per share in the fourth quarter are US$1.19 , estimated at $1.12.
[Tesla: Delivery of more than 405,000 cars in the fourth quarter, car deliveries in 2022 will increase by 40% year-on-year]
Tesla said that in the fourth quarter, the company produced more than 439,000 vehicles and delivered more than 405,000 vehicles. In 2022, vehicle deliveries will increase by 40% year-on-year to 1.31 million vehicles, and production will increase by 47% year-on-year to 1.37 million vehicles. In 2023, it is expected to maintain a long-term compound annual growth rate of 50%, producing about 1.8 million vehicles per year.
[Tesla: There is enough liquidity to fund the product roadmap]
Tesla said it has enough liquidity to fund its product roadmap and is accelerating its cost reduction roadmap in the near term. The next-generation vehicle platform is under development, and Cybertruck is expected to start production later this year; as the Shanghai factory has been operating at near full capacity for several months, no significant sequential production increase is expected in the short term.
[Musk says WSJ report on Twitter raising $3 billion to pay off Twitter debt is inaccurate]
Musk and his team are said to be exploring raising up to $3 billion to pay down part of Twitter’s $13 billion in debt, according to the Wall Street Journal. If the talks are successful, the fresh money would help pay down the highest-interest-rate, unsecured portion of that debt; it was not clear what stage the financing talks were at. In December 2022, representatives of Musk discussed the issuance of new Twitter shares of no more than US$3 billion. In a reply to a Twitter user, Musk said a Wall Street Journal report that he was in discussions with potential investors to raise up to $3 billion to pay down some of Twitter’s debt was inaccurate.
company news
[NYSE president responds to Tuesday’s abnormal trading suspension: the standby site was not closed in time after routine maintenance]
On January 25 local time, New York Stock Exchange President Lynn Martin (Lynn Martin) told the media that the abnormal trading suspension on Tuesday was indeed caused by human error. In addition to its main local trading site, the NYSE also has a backup site in Chicago. On Monday night local time, the NYSE performed routine maintenance on the Chicago site, but the backup site was still running until Tuesday’s opening. That caused the main site in New York to skip the opening auction, leaving hundreds of stocks to start trading without opening prices.
[UK regulator begins investigation into Broadcom’s proposed $61 billion acquisition of VMware]
The British Competition and Markets Authority (CMA) issued a statement on January 25, announcing that it has launched an investigation into the US chip manufacturer Broadcom’s proposed acquisition of cloud computing company VMware for US$61 billion, and plans to make the first phase of the investigation before March 22. Decide. In May, Broadcom said it planned to acquire VMware for $61 billion in cash and stock. The European Commission, which leads EU antitrust enforcement, announced in December that it would launch an investigation into the acquisition. The European Commission said at the time that it was concerned that the deal would allow Broadcom to limit competition in certain hardware component markets. The committee will make a decision on the merger before May this year.
[Chevron announces $75 billion share repurchase plan to expand dividends for 36 consecutive quarters]
U.S. oil company Chevron announced that it will implement $75 billion in stock buybacks and increase its dividend for the 36th consecutive quarter amid record quarterly profits in 2022. Chevron said that on March 10, it will pay dividends of $1.51 per share to shareholders, a quarter-on-quarter increase of 6.3%. Chevron plans to release its quarterly report on Friday (January 27).
[IBM’sfourth-quarterrevenueof$16.69billionisestimatedat$16.38billion]
IBM’s fourth-quarter revenue was $16.69 billion, estimated at $16.38 billion; fourth-quarter software revenue of $7.29 billion, estimated at $6.86 billion; fourth-quarter consulting revenue of $4.77 billion, estimated at $4.78 billion; full-year free Cash flow of about $10.5 billion, estimated at $9.48 billion; free cash flow of $5.21 billion in the fourth quarter, estimated at $5.8 billion; fourth-quarter operating earnings per share of $3.60, estimated at $3.58.