The rally in the stock market, which looked shaky at the beginning of the week, ended on Thursday and continued to rise on Friday. Leading stocks have already given buy signals. Treasury yields fell a few basis points after rising in the past few weeks. Strong income from Taiwan semiconductor (TSM), Delta Air Lines (DAL) and UnitedHealth (UNH) also contributed to the growth. Jp morgan chase (JPM) and other banking giants also beat profit forecasts. Tesla (TSLA) Sales in China surged in September as the electric vehicle giant introduced the FSD Beta to more drivers.
Stock Market Rally Confirmed
Major indices rose on Thursday, confirming a new rally attempt. The Dow, S&P 500 and Nasdaq continued their gains on Friday, ending the week above their 50-day lines. Leading stocks have already been giving buy signals for several days. The yield on 10-year Treasury bonds fell, but declined on Friday. Crude oil prices rose to long-term highs and copper futures rose.
Economy, inflation is heating up
The consumer price index rose by 0.4% in September, exceeding the expected growth by 0.3%. The rise in food and energy prices pushed the annual CPI inflation rate to 5.4%, which is in line with a 13-year high. The core consumer price index rose by only 0.2% at an annual level of 4%. Core inflation has been contained by lower air fares and used car and truck prices, which may change in the coming months. Meanwhile, rent inflation continues to pick up steam and this could be critical. The number of new claims for unemployment benefits fell 36,000 to a low of 293,000 in the period prior to October 9th. Retail sales also beat expectations, increasing 0.7% in September and 0.8% excluding cars. In addition, the August data were slightly upwardly revised.
The minutes of the September 21-22 meeting of the Federal Reserve System released Wednesday showed that the decline in asset purchases could begin in mid-November or mid-December. Taking into account the planned $ 15 billion per month, purchases will end in mid-June or mid-July.
5 shares near points of purchase; What to do after a big market week
Tesla sales growth in China
The China Passenger Car Association reported strong sales of electric vehicles in China on Tuesday. Tesla (TSLA) reports strong growth in local sales. Tesla’s wholesale sales totaled 56,006 units. This includes 52,153 local retail sales and 3,853 export vehicles. 33,033 Chinese-made Model Y crossovers were sold in the local market. Tesla China’s quarterly sales, including exports, were 133,218 units in the third quarter, up 44% from the second quarter. According to CPCA, passenger car sales in China totaled 1.6 million vehicles in September, down 17% from last year. Meanwhile, the Tesla FSD Beta has been introduced to at least 1,000 FSD owners. Tesla shares are up sharply.
Bank Income: Most Popular Views
The largest US banks beat Wall Street analysts’ forecasts in the third quarter, mainly due to investment bank fees amid an increase in the number of completed M&A deals and high IPO activity. Bank of America (BAC) profit jumped 67% and revenues jumped 11%. Wells Fargo (WFC) said earnings per share jumped 119% on falling revenues. Earnings per share of $ 1.17 per share was more than double its previous year’s figure, when the company had an unusual expense. Revenue fell 2.4% to $ 18.83 billion. Morgan Stanley (MS) and Goldman Sachs (GS) played comfortably. BofA shares jumped, while Morgan Stanley and Goldman also performed well. Wells changed little, while JPMorgan backed down.
Half profit in Taiwan is better
The world’s largest chip maker exceeded third-quarter expectations. Taiwan semiconductor manufacturing (TSM) earnings rose 17% to $ 1.08 a share, while sales rose 23% to $ 14.88 billion. Taiwan Semi predicts fourth-quarter sales of $ 15.55 billion, up 20% above the average forecast, slightly above consensus. Despite the positive results in the third quarter, Taiwan Semi noted a slight decrease in demand for smartphones and PCs in the fourth quarter. Taiwan Semi also discussed a planned plant in Japan, adding to its large expansion. TSM shares rose, while chip equipment makers rose.
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Domino’s Fall computers
Domino’s pizza (DPZ) said third-quarter earnings per share rose 30%, beating expectations. But revenue grew by only 3%, and the pizza delivery chain reported unexpected sales declines at the same stores in the United States. The decline in compensation reflects a labor shortage, and possibly a recovery in gains from the pandemic era. The tax cut supported earnings per share. Domino’s fell to a four-month low.
Delta warns of costs
Delta Air Lines (DAL) said the rise in fuel prices led to “modest” losses in the fourth quarter. But he remained optimistic on holiday demand and posted better-than-expected third-quarter earnings. Meanwhile, american airlines (AAL) offered a slightly more optimistic third-quarter sales outlook, and Southwest Airlines (LUV) was trying to recover from a wave of flight cancellations. Delta shares fell in a week, even as many non-aviation travel companies were higher.
UnitedHealth increases profits dramatically
UnitedHealth cut its Wall Street earnings forecast as earnings per share jumped 29% to $ 4.52. Revenue rose 11% to $ 72.34 billion as Dow Jones posted double-digit gains for UnitedHealthcare and Optum’s healthcare business. The report eased concerns about the impact of the summer Covid surge on medical spending. UNH shares jumped on the back of earnings, briefly hitting a record high.
Crispr Study is disappointing
Crispr Therapeutics (CRSP) closed Wednesday after it said its genetically-edited cancer drug caused a response in 58% of lymphoma patients. In the same study, 38% of patients had a complete response, meaning there were no signs of cancer. But only 21% of patients were still fully responding to treatment after six months. This was lower than in patients treated with the competing drug Allogena. Allogen (ALLO) rallied on Wednesday and continued to rally on Thursday alongside CRSP and related stocks. But the Allogene program has been suspended for security reasons.
InMode (INMD) rallied on Tuesday and in the week following non-invasive beauty treatments, the company released preliminary 3Q earnings per share and sales data that exceeded consensus. InMode has also raised its annual forecast.
Avantor Shares (AVTR) tumbled on Tuesday after the medical technology giant tentatively announced third-quarter sales of $ 1.83 billion, in line with expectations.
HubSpot (HUBS) rolled out a cross-enterprise payment system, marking a further step towards e-commerce for the digital marketing software maker. HubSpot partnered with private fintech company Stripe. HUBS shares rose sharply.
SAP (SAP) previously reported higher-than-expected profit for the third quarter, while revenue rose 5% to € 6.84 billion ($ 7.89 billion). The Germany-based software giant raised its full-year forecast.
Apple (AAPL) may cut iPhone 13 production by as much as 10 million units by 2021 due to chip shortages, Bloomberg reports.
Charles Schwab (SCHW) increased its earnings per share 65% to 84 cents on an 87% rise in revenue to $ 4.57 billion, a record high.
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