US stocks closed | Concerns about bank crisis reignited, US stocks fell to four-week lows, with all three major indexes falling more than 1%; Positive earnings report, Microsoft and Google rose after hours.
US stocks fell on Tuesday. The market is focusing on US stock earnings to determine the economic situation in the USA. $PepsiCo (PEP.US)$ 、 $General Motors (GM.US)$ and $McDonald's (MCD.US)$ Earnings report exceeded expectations. $Microsoft (MSFT.US)$ and $Alphabet-A (GOOGL.US)$ Exceeded expectations. As of the close, $Dow Jones Industrial Average (.DJI.US)$ fell by 1.01%, $Nasdaq Composite Index (.IXIC.US)$ Decreased by 1.98%. $S&P 500 Index (.SPX.US)$ Decreased by 1.58%. In the US stock market, 9059 companies fell, while only 2314 rose.
First Republic BankFell by 49.37%, stock price hit a historical low, with a volume of 1.9 billion US dollars. The bank's latest quarter performance report shows a 40% decrease in deposits in the first quarter, dropping to $104.5 billion, but has since stabilized. First Republic Bank also announced expense reductions, including a 20% to 25% workforce reduction in the second quarter.
This regional bank has been closely watched. Investors are increasingly concerned that First Republic Bank may face the same fate as Silicon Valley Bank and Signature Bank. In March, the collapse of Silicon Valley Bank and Signature Bank triggered a crisis in the entire banking industry. So far this year, First Republic Bank's stock price has fallen by over 93%.
According to reports, the bank is trying to sell $100 billion in loans and bonds to strengthen its balance sheet.
According to reports, the bank is trying to sell $100 billion in loans and bonds to strengthen its balance sheet.
S&P's 11 sectors all collapsed. $Materials Select Sector SPDR ETF (XLB.US)$ 、 $The Technology Select Sector SPDR® Fund (XLK.US)$ 、 $Consumer Discretionary Select Sector SPDR Fund (XLY.US)$ All fell by more than 2%. $Energy Select Sector SPDR Fund (XLE.US)$ and $Industrial Select Sector SPDR Fund (XLI.US)$ Dropped more than 1.8%. $Financial Select Sector SPDR Fund (XLF.US)$ Dropped more than 1.7%. $The Communication Services Select Sector SPDR® Fund (XLC.US)$ Dropped by about 1.6%, only defensive ones. $Utilities Select Sector SPDR Fund (XLU.US)$ The decline was less than 0.1%.
Growth tech stocks all fell together.
metaverse $Meta Platforms (META.US)$ Dropping by 2.5%, falling for seven consecutive days to a new low in nearly four weeks. $Apple (AAPL.US)$ Dropping by 1% to a two-week low. $Amazon (AMZN.US)$ Dropped over 3%. $Netflix (NFLX.US)$ Dropping by 2% to a near five-week low. $Tesla (TSLA.US)$ Failed to turn around, closing down by over 1%, hitting a new low in nearly three months.
$Microsoft (MSFT.US)$ Dropping by over 2% to hit a new low in four weeks again. $Alphabet-A (GOOGL.US)$ Dropping by 2%, ending a three-day rally, breaking away from a one-week high. Microsoft's first-quarter cloud revenue exceeded expectations, Google's revenue exceeded expectations, cloud revenue met expectations, both rose by about 4% after hours.
$Microsoft (MSFT.US)$ Dropping by over 2% to hit a new low in four weeks again. $Alphabet-A (GOOGL.US)$ Dropping by 2%, ending a three-day rally, breaking away from a one-week high. Microsoft's first-quarter cloud revenue exceeded expectations, Google's revenue exceeded expectations, cloud revenue met expectations, both rose by about 4% after hours.
Key market news
The White House will veto House Speaker McCarthy's debt ceiling plan.
On April 25th, the White House announced that Biden will veto the debt ceiling plan proposed by US House Speaker McCarthy. Previously, McCarthy stated that the House would pass his plan to raise the government's debt ceiling by $1.5 trillion, but when asked if he had secured the necessary 218 Republican votes, he did not directly respond.
US Treasury Secretary Yellen warns: Failure to raise the debt ceiling will trigger an economic disaster.
On Tuesday, April 25th, US Treasury Secretary Yellen warned that if Congress fails to raise the federal government's debt ceiling, leading to default, it will trigger an economic disaster and result in rising interest rates in the coming years.
In January of this year, the US federal government debt reached the statutory limit of about $31.4 trillion. The US Treasury Department then implemented the so called extraordinary measures to temporarily avoid default, including suspending investments in certain government accounts, allowing the Treasury to continue to make payments to bondholders, social security beneficiaries, and others.
OpenAI releases important news! ChatGPT Enterprise Edition subscription service will soon be launched.
On Tuesday, April 25th, the artificial intelligence research company OpenAI announced on its official website that users of the chatbot ChatGPT can now prevent chat logs from being used to train models by toggling a switch in the settings.
Compared to this improvement, the second half of the announcement contains significantly more explosive news. OpenAI has stated that the company is developing a new 'ChatGPT Business' subscription service for professionals who want to control data and for businesses seeking to manage end users.
In short, ChatGPT Business is the enterprise version of ChatGPT. OpenAI has announced that the company plans to launch this new service in the coming months, following API data usage rules, which by default will not use enterprise user data to train models.
Important News from the Company
First Republic Bank hits historic lows, reportedly planning to sell up to $100 billion in assets.
According to sources familiar with the matter, as part of a large-scale bailout plan, First Republic Bank is considering divesting $50 billion to $100 billion of long-term securities and mortgage loans.
Unidentified sources have revealed that the sale will help reduce the bank's asset-liability mismatch. One source said First Republic may offer warrants or preferred stock to potential buyers, including large U.S. banks, to encourage them to acquire its assets at a price above market value.
AI and cloud services boost Microsoft's earnings beyond expectations, with a post-market surge of over 8%.
After hours on Tuesday, Microsoft released its financial data for the third quarter. Revenue was $52.9 billion, exceeding analysts' expectations of $51.03 billion; earnings per share were $2.45, higher than the expected $2.24. In terms of key businesses, productivity and business services revenue reached $17.5 billion, up 11% year-on-year; intelligent cloud revenue was $22.1 billion, up 16% year-on-year; personal computing business revenue was $13.3 billion, down 9% year-on-year. Following the financial report, Microsoft's stock price surged over 8% after hours.
Microsoft CEO Nadella stated that the company's performance demonstrates the beginning of the 'era of computing', where the world's most advanced AI models are being combined with the world's most universal user interface - natural language.
Faced with the impact of Microsoft AI, Google's search returned to growth in the first quarter, with its cloud business turning losses into profits, rising over 4% after hours.
Alphabet, Google's parent company, reported revenue of $69.79 billion in the first quarter, higher than analysts' expectations of $68.99 billion. Google Cloud revenue was $7.456 billion, turning profitable for the first time, expected $7.46 billion; advertising revenue was $54.55 billion, expected $53.79 billion; earnings per share were $1.17, analyst expectation was $1.09. Google also announced that the board authorized an additional repurchase of up to $70 billion. As a result, Google's stock rose over 2% after hours.
Technical Analysis
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