NASDAQ 18,403(+0.50%) U.S. bond 10-year rate of 4.282% (-0.05%) Dollar Index 105

2024.07.9.05 min U.S. close

#Apple #Powell #Prices #EarningsSeason

NASDAQ 18,403(+0.50%)
U.S. bond 10-year rate of 4.282% (-0.05%)
Dollar Index 105.011p (+0.14) NDF KRW 1,384 (-1)

The S&P 500 and Nasdaq Composite Index rose slightly but also rose to a new high. Ahead of the CPI announcement and Powell's remarks in Congress, the gains were not significant. The sector that led the gains were big tech companies. Apple regained the top market cap. It regained the throne a month after announcing Apple Intelligence. Shares of major semiconductor companies such as Nvidia, Broadcom, AMD, and TSMC were strong. Intel, in particular, rose more than 6%. Shares of latecomers such as Intel rose on the prospect of strong performance in the second half of the year. Electric vehicle company Lucid rose 8%, reporting a 4.3% year-on-year increase in vehicle deliveries in the second quarter. Consumer stocks, on the other hand, were weak. Nike, which has lost expectations of earnings, fell 3% and Chipotle also fell 5%, showing a polarization centered on technology stocks.

This week, we have a very important event regarding our interest rate decision. Powell's speech to Congress is scheduled for 11 p.m. tonight and 11 p.m. tomorrow night in our time. There's no reason for the House and Senate speeches to be different, so the bond market is likely to change depending on what Powell is talking about tonight. And then there's the June CPI announcement on the night of the 11th. It's expected to be 3.1% year-on-year, down from 3.3% the previous month. As prices have recently fallen, interest rates have also been falling. I don't think Powell will make any hawkish remarks ahead of the November election either. The unemployment rate was raised to 4.1% from June employment announced last week. If employment slows down slowly and prices slowly fall, I think the Fed also has a growing cause to cut interest rates. Although the theory of a September cut is dominant, there are also comments about the possibility of a July rate cut.

The U.S. will also begin its earnings season in earnest this week. On the 11th, PepsiCo and Delta Air Lines, Citigroup, JPMorgan, and Wells Fargo will announce their earnings results on the 12th. Goldman Sachs is telling large bank Wells Fargo to buy a two-way call option before announcing its earnings. It seems to express confidence in the banking sector's performance. If bank stocks do well, the upward rally will be good until the big tech companies report their earnings.