On Friday, December 1st Eastern Time, the first trading day of December in the US stock market, the three major US indices collectively closed higher.
Federal Reserve Chairman Powell spoke up and continued to pour cold water on market expectations of interest rate cuts.
Experimental weight loss drug research has failed, with world pharmaceutical giant Pfizer closing down more than 5%, the largest decline since December 2021.
The PC market is sluggish, with giant Dell dropping nearly 10% after its financial report.
Powell made a resounding statement: It's too early to announce a victory over inflation
According to Hong Kong's Wanda News Agency, on Friday, December 1st local time, Federal Reserve Chairman Powell reiterated during a dialogue event at Spelman College in Atlanta that if the timing is appropriate, we are prepared to further tighten policies.
Powell emphasized that it is too early to confidently conclude that we have achieved sufficient restrictive positions or speculate on when policies may relax.
A report released by the US Department of Commerce on Thursday local time showed that the Federal Reserve's preferred inflation indicator, Consumer Price Index (CPI), increased by 3% compared to the same period last year, but the core base index after deducting volatile food and energy prices was 3.5%. Powell stated that he is committed to maintaining a tightening policy until inflation reaches the 2% track; To achieve the inflation target, the recent progress in core inflation must be sustained.
Powell added that the strong actions taken by the Federal Reserve have pushed policy interest rates into a restrictive range, indicating that tight monetary policy is putting downward pressure on economic activity and inflation. He believes that the impact of monetary policy on economic conditions is lagging, and the full effect of tightening policies may not have been felt yet.
Powell further stated that if the timing is appropriate, the Federal Reserve is prepared to further tighten monetary policy; The Federal Open Market Committee has acted with caution, and the risks of insufficient and excessive tightening have become more balanced.
Federal Reserve official Gullsby also stated that he still believes that US inflation is on track to fall towards the 2% target. If inflation does not progress, the Federal Reserve will take action at all costs.
Fearless Powell's "pouring cold water" on the collective gains of the three major US indices
On Friday, December 1st Eastern Time, Federal Reserve Chairman Powell's "pouring cold water" did not hinder the stock market's rise. The US stock market opened lower in the morning, with the S&P and Nasdaq turning higher after Powell's speech. In the end, the three major US indices collectively closed higher.
As of the close, the Dow Jones Industrial Average closed up 294.61 points, or 0.82%, at 36245.5 points. For the first time since January last year, it closed above 36000 points, setting a new high for two consecutive days since January last year. The S&P closed up 0.59% at 4594.63 points, reaching a new closing high since March 30 last year, rising for two consecutive days. The Nasdaq rose 0.55% to close at 14305.03 points.
According to the Chicago Mercantile Exchange Group (CME Group), market pricing last Friday morning showed that the Federal Reserve has indeed ended interest rate hikes, with the earliest possible start of rate cuts being in March 2024. In addition, the futures market shows that by the end of this year, the Federal Reserve will cut interest rates by a total of 1.25 percentage points, equivalent to a 0.25 percentage point cut.
Experimental weight loss drug research failed, world pharmaceutical giant Pfizer closed down more than 5%
On Friday, December 1st Eastern Time, world pharmaceutical giant Pfizer closed down more than 5%, marking the largest decline since December 2021, with its stock price plummeting nearly 40% this year. Reported at $28.91 per share, with a latest total market value of $163.238 billion.
On the news side, Pfizer announced the data of Phase IIb clinical trial (NCT04707313) of oral small molecule glucagon like peptide-1 receptor agonist (GLP-1RA) Danugipron (PF-06882961) for adult obese (non type 2 diabetes) patients. The study reached the main endpoint, with a statistically significant change in patient weight from baseline. However, Pfizer stated that it does not plan to advance this twice daily oral medication to Phase III clinical stage.
Pfizer stated that a high incidence of adverse reactions was observed in patients, although most of these side effects were mild and gastrointestinal. In clinical trials, a considerable number of patients stopped taking danuglipron due to intolerable side effects such as nausea and vomiting.
The PC market is sluggish, with giant Dell falling nearly 10% after its financial report
On Friday, December 1st Eastern Time, PC giant Dell announced its third quarter performance for the 2024 fiscal year. The PC business unit's performance was significantly lower than expected, and it provided lower than expected performance outlook data.
Dell fell nearly 10% at one point and closed down over 5%.
According to financial report data, Dell's Q3 revenue decreased by 10% year-on-year to $22.251 billion, lower than the average analyst expectation of $23 billion. By business division, Dell's PC customer solutions business revenue, including corporate and consumer personal computer sales, decreased by 11% year-on-year to $12.276 billion, while the month on month decline was 5%, far below analyst expectations.
Wall Street giant Citigroup has warned that Dell's weak PC business may be "temporarily bad news" for the performance and stock prices of the PC CPU industry giants Intel and AMD.
According to Sina Technology, personal computer manufacturers have suffered a heavy blow in the past 18 months due to a significant decrease in demand for personal computers. However, analysis suggests that signs of recovery in the industry are already beginning to be seen. In a report released in October, research firm IDC stated that despite the global economic downturn, the personal computer market has "emerged from a downturn.".
Citigroup analyst Christopher Danely wrote in an investor report, "We note that approximately 83% of Intel's sales come from the personal computer and server sectors, while AMD's share is 53%." "We also note that as of 2022, Dell's PC business revenue accounts for approximately 19% of Intel's net revenue."
Danely added that he is still waiting for the trend of global laptop shipment data in November. "If the sales of laptops in November are lower than expected, we believe this is very unfavorable news for the PC update cycle. Citigroup maintains a" neutral "rating for Intel's stock and a" buy "rating for AMD.".
On Friday, December 1st Eastern Time, PC giant Dell announced its third quarter performance for the 2024 fiscal year. The PC business unit's performance was significantly lower than expected, and it provided lower than expected performance outlook data.
Dell fell nearly 10% at one point and closed down over 5%.
According to financial report data, Dell's Q3 revenue decreased by 10% year-on-year to $22.251 billion, lower than the average analyst expectation of $23 billion. By business division, Dell's PC customer solutions business revenue, including corporate and consumer personal computer sales, decreased by 11% year-on-year to $12.276 billion, while the month on month decline was 5%, far below analyst expectations.
Wall Street giant Citigroup has warned that Dell's weak PC business may be "temporarily bad news" for the performance and stock prices of the PC CPU industry giants Intel and AMD.
According to Sina Technology, personal computer manufacturers have suffered a heavy blow in the past 18 months due to a significant decrease in demand for personal computers. However, analysis suggests that signs of recovery in the industry are already beginning to be seen. In a report released in October, research firm IDC stated that despite the global economic downturn, the personal computer market has "emerged from a downturn.".
Citigroup analyst Christopher Danely wrote in an investor report, "We note that approximately 83% of Intel's sales come from the personal computer and server sectors, while AMD's share is 53%." "We also note that as of 2022, Dell's PC business revenue accounts for approximately 19% of Intel's net revenue."
Danely added that he is still waiting for the trend of global laptop shipment data in November. "If the sales of laptops in November are lower than expected, we believe this is very unfavorable news for the PC update cycle. Citigroup maintains a" neutral "rating for Intel's stock and a" buy "rating for AMD.".
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