US Market Outlook: Bullish Market Revival! But it doesn't necessarily continue like this = Mr. Authers, the Nasdaq Composite Stock Price Index started 16 points higher
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This is the reading for tonight's NY stock.
Market Overview
The US market started, and the Dow Jones Industrial Average, which consists of excellent stocks, fell 13.83 dollars to 39989.76 dollars, and the Nasdaq Composite Stock Price Index, which has a high high-tech stock ratio, began at 16702.02 with a 16.05 point increase. The S&P 500 average, which consists of stocks of 500 major US companies, is 2.08 points higher at 5305.35.
Market Overview
The US market started, and the Dow Jones Industrial Average, which consists of excellent stocks, fell 13.83 dollars to 39989.76 dollars, and the Nasdaq Composite Stock Price Index, which has a high high-tech stock ratio, began at 16702.02 with a 16.05 point increase. The S&P 500 average, which consists of stocks of 500 major US companies, is 2.08 points higher at 5305.35.
$Dow Jones Industrial Average (.DJI.US)$
$Nasdaq Composite Index (.IXIC.US)$
$S&P 500 Index (.SPX.US)$
Top news
Morgan's Wilson turns bullish on US stocks
●Michael Wilson of Morgan Stanley was previously known as the last bearish on Wall Street, but he turned bullish on US stocks, raised the S&P 500's 12-month target by 20% to 5,400, and is expecting a 2% rise by 2025/6.
● Mr. Wilson admits that despite the “sunny macroenvironment” expected by Morgan Stanley supporting risk assets, it is becoming increasingly difficult to predict broader economic results due to more unstable data.
● With Mr. Wilson's outlook revised, he became one of the more optimistic strategists. Meanwhile, Dubravko Lakos-Bujas of JPMorgan Chase predicts that the S&P 500 Index will fall by 20% or more by the end of the year, and he is still one of the few prominent bearish theorists.
The strong stock market has returned, but it does not necessarily mean that it will continue as it is
●The stock market is showing signs of bullishness, which suggests economic recovery, but there are complicated circumstances underneath the surface. Copper prices are nearing an all-time high, but this is not only due to economic growth. Also, stock volatility has been at a low level since before the pandemic, and Bloomberg Opinion senior editor John Authers thinks this is probably due to the effects of specific financial products.
● Despite high interest rates and recognition that the US economy is struggling, US stocks and world stocks hit record highs. VIX, which is an indicator of market volatility, has declined to the level since 2019, indicating that market unease has been reduced. However, the reasons behind these optimistic signs aren't entirely clear, and they may not be sustainable, he notes.
● Although some companies are facing a difficult situation, it has not yet caused a default (default on debt) for large-scale companies where high interest rates are expected. Meanwhile, optimism about interest rate cuts has been rekindled due to dovish statements from the US Federal Reserve (Fed) and low inflation risks.
FRB Vice Chairman Barr is in a good position to stabilize interest rates and keep an eye on the evolution of the situation
FRB Vice Chairman Barr's statement (in charge of bank supervision) was conveyed, and he said, “It's a good position to stabilize interest rates and keep an eye on changes in the situation.” He also said, “We are considering restrictions on assets that banks can hold as buffers.”
● A good position to stabilize interest rates and keep an eye on developments.
● More time is needed for restrictive policies to work.
● The FRB's current approach is a prudent approach for risk management.
● The economy is strong, growth is strong, and the unemployment rate is low.
● The FRB is considering restrictions on assets that banks can hold as buffers.
● We are considering solutions to liquidity issues.
● The FRB is considering requirements for bank reserves and discount counters.
Will it take time for the president of the US Atlanta Area Federal Reserve to be convinced that the inflation rate will move towards 2%
●It will be some time before we are convinced that inflation will move towards 2%. Our policy stance is limited.
● The US Federal Reserve (FRB) does not rule out all possibilities.
● The labor market is relaxed from a year ago, but it is not soft.
Tesla hits major European leasing customers with frequent price cuts
● $Tesla (TSLA.US)$There is a high possibility that unofficial discounts will be offered and service and maintenance issues will be improved in order to appease European leasing companies whose profits are deteriorating due to frequent price cuts. This strategy may stimulate sales, but it also depresses profits. The company's net profit for the first quarter was 1.13 billion dollars, down 55% from the same period last year, and the operating margin fell further to 5.5% from 8.2% in the fourth quarter last year.
● European leasing companies are important to Tesla and account for nearly half of sales. Tesla's frequent price cuts have had an impact on leasing companies' residual value forecasts, and as a result, on profits. Tesla has offered compensation measures, but leasing companies are skeptical that they are sufficient.
● Tesla is facing the challenge of the rise of Chinese and European competitors in the European leasing market. Service quality issues are a source of trouble for European leasing companies, and Tesla's efforts to improve services are considered essential for maintaining relationships with customers.
— MooMoo News Zeber
This article uses automatic translation for some of its parts
$Nasdaq Composite Index (.IXIC.US)$
$S&P 500 Index (.SPX.US)$
Top news
Morgan's Wilson turns bullish on US stocks
●Michael Wilson of Morgan Stanley was previously known as the last bearish on Wall Street, but he turned bullish on US stocks, raised the S&P 500's 12-month target by 20% to 5,400, and is expecting a 2% rise by 2025/6.
● Mr. Wilson admits that despite the “sunny macroenvironment” expected by Morgan Stanley supporting risk assets, it is becoming increasingly difficult to predict broader economic results due to more unstable data.
● With Mr. Wilson's outlook revised, he became one of the more optimistic strategists. Meanwhile, Dubravko Lakos-Bujas of JPMorgan Chase predicts that the S&P 500 Index will fall by 20% or more by the end of the year, and he is still one of the few prominent bearish theorists.
The strong stock market has returned, but it does not necessarily mean that it will continue as it is
●The stock market is showing signs of bullishness, which suggests economic recovery, but there are complicated circumstances underneath the surface. Copper prices are nearing an all-time high, but this is not only due to economic growth. Also, stock volatility has been at a low level since before the pandemic, and Bloomberg Opinion senior editor John Authers thinks this is probably due to the effects of specific financial products.
● Despite high interest rates and recognition that the US economy is struggling, US stocks and world stocks hit record highs. VIX, which is an indicator of market volatility, has declined to the level since 2019, indicating that market unease has been reduced. However, the reasons behind these optimistic signs aren't entirely clear, and they may not be sustainable, he notes.
● Although some companies are facing a difficult situation, it has not yet caused a default (default on debt) for large-scale companies where high interest rates are expected. Meanwhile, optimism about interest rate cuts has been rekindled due to dovish statements from the US Federal Reserve (Fed) and low inflation risks.
FRB Vice Chairman Barr is in a good position to stabilize interest rates and keep an eye on the evolution of the situation
FRB Vice Chairman Barr's statement (in charge of bank supervision) was conveyed, and he said, “It's a good position to stabilize interest rates and keep an eye on changes in the situation.” He also said, “We are considering restrictions on assets that banks can hold as buffers.”
● A good position to stabilize interest rates and keep an eye on developments.
● More time is needed for restrictive policies to work.
● The FRB's current approach is a prudent approach for risk management.
● The economy is strong, growth is strong, and the unemployment rate is low.
● The FRB is considering restrictions on assets that banks can hold as buffers.
● We are considering solutions to liquidity issues.
● The FRB is considering requirements for bank reserves and discount counters.
Will it take time for the president of the US Atlanta Area Federal Reserve to be convinced that the inflation rate will move towards 2%
●It will be some time before we are convinced that inflation will move towards 2%. Our policy stance is limited.
● The US Federal Reserve (FRB) does not rule out all possibilities.
● The labor market is relaxed from a year ago, but it is not soft.
Tesla hits major European leasing customers with frequent price cuts
● $Tesla (TSLA.US)$There is a high possibility that unofficial discounts will be offered and service and maintenance issues will be improved in order to appease European leasing companies whose profits are deteriorating due to frequent price cuts. This strategy may stimulate sales, but it also depresses profits. The company's net profit for the first quarter was 1.13 billion dollars, down 55% from the same period last year, and the operating margin fell further to 5.5% from 8.2% in the fourth quarter last year.
● European leasing companies are important to Tesla and account for nearly half of sales. Tesla's frequent price cuts have had an impact on leasing companies' residual value forecasts, and as a result, on profits. Tesla has offered compensation measures, but leasing companies are skeptical that they are sufficient.
● Tesla is facing the challenge of the rise of Chinese and European competitors in the European leasing market. Service quality issues are a source of trouble for European leasing companies, and Tesla's efforts to improve services are considered essential for maintaining relationships with customers.
— MooMoo News Zeber
This article uses automatic translation for some of its parts
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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よろぴこ : Interest rate cuts are a temporary tailwind for companies, but if the economy is getting worse, it is clear that there is no sustainability. Everyone knows it. What matters is timing.