Outlook for the US market: TSMC stock hits record high, market cap challenging 1 trillion dollars again. The Nasdaq index starts 83 points higher.
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This is the financial market trend for tonight's New York Stock Exchange.![]()
Market Overview
The US market started, the Dow Jones Industrial Average, which consists of high-quality stocks, opened at $42,800.89, down $62.97. The Nasdaq Composite Index, with a high proportion of technology stocks, started at 18,426.66, up 83.72 points. The S&P 500 Index, which consists of 500 large cap stocks in the USA, opened at 5,829.81, up 14.78 points.
The US market started, the Dow Jones Industrial Average, which consists of high-quality stocks, opened at $42,800.89, down $62.97. The Nasdaq Composite Index, with a high proportion of technology stocks, started at 18,426.66, up 83.72 points. The S&P 500 Index, which consists of 500 large cap stocks in the USA, opened at 5,829.81, up 14.78 points.
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Challenges behind the strong performance
●The US earnings season has arrivedし、 $JPMorgan (JPM.US)$ And $Wells Fargo & Co (WFC.US)$ Exceeded financial estimates, $S&P 500 Index (.SPX.US)$ Surpassed 5,800.
●While the financial performance of American companies remains strong, market expectations for next year (14% profit growth rate) have become a more challenging task.
●The percentage of profits from S&P500 constituent companies in the GDP has reached 15%, setting a new record. This indicates the high profitability of companies, while also implying the potential for increased pressure and challenges in order to continue growing in the future.
●In addition to the above, in the earnings highlights, $Bank of America (BAC.US)$ 、 $Citigroup (C.US)$ 、 $Morgan Stanley (MS.US)$ Earnings reports are scheduled. In Europe, $LVMH Moet Hennessy Louis Vuitton (LVMUY.US)$ And chip equipment maker $ASML Holding (ASML.US)$ are scheduled, $Taiwan Semiconductor (TSM.US)$Is also scheduled.
Challenges behind the strong performance
●The US earnings season has arrivedし、 $JPMorgan (JPM.US)$ And $Wells Fargo & Co (WFC.US)$ Exceeded financial estimates, $S&P 500 Index (.SPX.US)$ Surpassed 5,800.
●While the financial performance of American companies remains strong, market expectations for next year (14% profit growth rate) have become a more challenging task.
●The percentage of profits from S&P500 constituent companies in the GDP has reached 15%, setting a new record. This indicates the high profitability of companies, while also implying the potential for increased pressure and challenges in order to continue growing in the future.
●In addition to the above, in the earnings highlights, $Bank of America (BAC.US)$ 、 $Citigroup (C.US)$ 、 $Morgan Stanley (MS.US)$ Earnings reports are scheduled. In Europe, $LVMH Moet Hennessy Louis Vuitton (LVMUY.US)$ And chip equipment maker $ASML Holding (ASML.US)$ are scheduled, $Taiwan Semiconductor (TSM.US)$Is also scheduled.
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Update - [Earnings Flash] JP Morgan, up more than 2% after hours, revenue increased by 7% to 42.6 billion dollars, net profit decreased by 2% to 12.8 billion dollars.
【Earnings Preview】TSMC, strong demand driving growth, potential to hit record high?
The weakest earnings season in the past four quarters? Yet, shining big tech stocks lead the top 10 stocks in the USA market.
Update - [Earnings Flash] JP Morgan, up more than 2% after hours, revenue increased by 7% to 42.6 billion dollars, net profit decreased by 2% to 12.8 billion dollars.
【Earnings Preview】TSMC, strong demand driving growth, potential to hit record high?
The weakest earnings season in the past four quarters? Yet, shining big tech stocks lead the top 10 stocks in the USA market.
AI revenue growth slows down.
●The earnings growth rate of S&P 500 constituent companies in the third quarter is mainly benefiting from major high-tech companies that heavily rely on AI development ( $Microsoft (MSFT.US)$ 、 $Apple (AAPL.US)$ 、 $Alphabet-C (GOOG.US)$ 、 $NVIDIA (NVDA.US)$ 、 $Tesla (TSLA.US)$ 、 $Meta Platforms (META.US)$ 、 $Amazon (AMZN.US)$Expected to bring about an 18% increase, but the growth rate has decreased from over 30% in 2023.
●S&P500の他の企業の第3四半期の増益率は1.8%で、2四半期連続の増益となる見込みだが、その成長率は小さく、第2四半期の9.1%から低下している。●The earnings growth rate of S&P 500 constituent companies in the third quarter is mainly benefiting from major high-tech companies that heavily rely on AI development ( $Microsoft (MSFT.US)$ 、 $Apple (AAPL.US)$ 、 $Alphabet-C (GOOG.US)$ 、 $NVIDIA (NVDA.US)$ 、 $Tesla (TSLA.US)$ 、 $Meta Platforms (META.US)$ 、 $Amazon (AMZN.US)$Expected to bring about an 18% increase, but the growth rate has decreased from over 30% in 2023.
●他の493社は2025年第1四半期まで2桁の増益を達成する見込みであり、今後の成長が加速する可能性を示している。
「ストックピッカー」のパラダイス
●オプション市場は、個別銘柄の予想変動率が2021年以降で最も高いことを示しているが、指数全体としては比較的緩やかであるため、この決算シーズンは「銘柄ピッカーの楽園」になるかもしれない。
●オプション市場は、個別銘柄の予想変動率が2021年以降で最も高いことを示しているが、指数全体としては比較的緩やかであるため、この決算シーズンは「銘柄ピッカーの楽園」になるかもしれない。
●S&P500の3セクター（テクノロジー、通信サービス、ヘルスケア）は10％以上の増益が予想されているが、エネルギー・セクターは20％以上の減益が予想されている。
●エネルギー・セクターの業績予想は大幅に下方修正されているが、これは主に前四半期の原油価格の急落によるものである。
●エネルギー・セクターの業績予想は大幅に下方修正されているが、これは主に前四半期の原油価格の急落によるものである。
Can the company maintain profitability?
Wall Street focuses on the profitability of companies, an important indicator that shows how efficiently a company's revenue is linked to profit.
Net margins for the third quarter are expected to be 12.9%, slightly lower than the 13.1% in the second quarter, but showing an increase from 12.8% in the same period last year, suggesting that some companies are reluctant to pass on cost increases to consumers.
Profit margins are the lowest in the energy and real estate sectors, but overall profit margins are expected to recover over the next few quarters.
Wall Street focuses on the profitability of companies, an important indicator that shows how efficiently a company's revenue is linked to profit.
Net margins for the third quarter are expected to be 12.9%, slightly lower than the 13.1% in the second quarter, but showing an increase from 12.8% in the same period last year, suggesting that some companies are reluctant to pass on cost increases to consumers.
Profit margins are the lowest in the energy and real estate sectors, but overall profit margins are expected to recover over the next few quarters.
Election Storm
As the U.S. presidential election approaches, investors are likely to pay attention to what company management will say about the economy, trade policy risks, and other political issues during earnings calls. According to Bank of America, the number of companies mentioning 'elections' during the second quarter earnings calls has increased by 62% compared to four years ago.
According to Mr. Kwon of Bank of America, based on historical trends, corporate investment activity typically accelerates after the U.S. presidential election. Especially in a low-interest rate environment, there may be an incentive for companies to release capital over the next few quarters, but there is also a possibility of delays in some expansion plans and expenditures.
Jeff Buchbinder, Chief Equity Strategist at LPL Financial, stated that much of the current capital expenditure is focused on AI and is unlikely to be affected by the election.
As the U.S. presidential election approaches, investors are likely to pay attention to what company management will say about the economy, trade policy risks, and other political issues during earnings calls. According to Bank of America, the number of companies mentioning 'elections' during the second quarter earnings calls has increased by 62% compared to four years ago.
According to Mr. Kwon of Bank of America, based on historical trends, corporate investment activity typically accelerates after the U.S. presidential election. Especially in a low-interest rate environment, there may be an incentive for companies to release capital over the next few quarters, but there is also a possibility of delays in some expansion plans and expenditures.
Jeff Buchbinder, Chief Equity Strategist at LPL Financial, stated that much of the current capital expenditure is focused on AI and is unlikely to be affected by the election.
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Source: moomoo, Bloomberg
This article uses auto-translation in part.
Source: moomoo, Bloomberg
This article uses auto-translation in part.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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