On Thursday, March 14th Eastern Time, US stocks closed lower and US bond yields climbed. The US February PPI data showed that the overall inflation rate exceeded expectations for the second consecutive month, consolidating market expectations that the Federal Reserve is not in a hurry to cut interest rates.
Following Wells Fargo, UBS has also lowered Tesla's target price from $225 to $165. Tesla continued to fall more than 4% on Thursday, reaching a new low since May last year, with a market value evaporating $22.2 billion (approximately RMB 160.2 billion).
US crude oil inventories continue to decline, with WTI crude oil closing 1.9% higher on Thursday.
PPI data shows rising inflation in the United States
As of the close, the Dow Jones Industrial Average fell 0.35% to close at 38905.66 points; The S&P 500 index fell 0.29% to 5150.48 points; The Nasdaq fell 0.3% to close at 16128.53 points.
On Thursday, the market released the three major economic data of the United States: Producer Price Index, retail sales, and last week's initial unemployment claims.
The US PPI in February increased by 1.6% year-on-year, with an expected increase of 1.1% and a previous increase of 0.9%; A month on month increase of 0.6%, expected to increase by 0.3%, with a previous increase of 0.3%. The core PPI increased by 2.0% year-on-year, with an expected increase of 1.9% and a previous increase of 2.0%; A month on month increase of 0.3%, an expected increase of 0.2%, and a previous increase of 0.5%.
Retail sales in the United States increased by 0.6% month on month in February, with an expected increase of 0.8% and a decrease of 0.8% from previous values; Core retail sales increased by 0.3% month on month, with an expected increase of 0.5%, while the previous value decreased by 0.6%. Retail sales were $700.727 billion, with a previous value of $700.291 billion; The core retail sales were $566.79 billion, with a previous value of $567.86 billion.
The number of initial jobless claims in the United States last week was 209000, with an expected 218000. The previous value was revised from 217000 to 210000; The four week average is 208000 people, compared to the previous value of 212500 people. As of the week ending March 2, the number of Americans reapplying for unemployment benefits in the United States was 1.811 million, with an expected 1.9 million. The previous value was revised from 1.906 million to 1.794 million.
Once the PPI data was released, the yield of US treasury bond bonds climbed, and the yield of 10-year treasury bond rose 10 basis points to 4.292%. The yield of two-year treasury bond rose 6.7 basis points to 4.689%.
Tesla's stock price continues to decline
UBS also lowered Tesla's target price
Tesla's stock price continued to decline, falling 4.12% on Thursday, with its market value evaporating by $22.2 billion (approximately RMB 160 billion) to $162.5 per share, reaching a new low since May last year.
Wells Fargo Bank previously downgraded Tesla's rating to low configuration and lowered its target price from $200 to $120. Subsequently, UBS also lowered Tesla's target price from $225 to $165.
According to a report released by ISeeCars, Tesla is currently the brand with the fastest depreciation rate of used cars among all car brands in the US market, even far surpassing Maserati and Alfa Romeo, known for their high depreciation rates.
On Thursday, most technology stocks rose, with the Wanda US TAMAMA Technology Index up 0.47%, Microsoft up 2.44%, Apple up 1.09%, Amazon up 1.24%, Netflix up 0.58%, Google up 2.37%, and Facebook down 0.75%.
Bank stocks fell across the board
JPMorgan Chase fined over $300 million
On Thursday, bank stocks fell across the board, with JPMorgan Chase down 1.74%, Goldman Sachs down 0.91%, Citigroup down 1.13%, Morgan Stanley down 0.24%, Bank of America down 1.02%, and Wells Fargo down 0.74%.
The Federal Reserve statement shows that JPMorgan Chase has been fined $348.2 million by US banking regulators due to inadequate procedures for regulating the trading activities of the company and its clients.
Boeing's Crisis Spreads
According to CCTV News, a Boeing 777 aircraft taken off from Dallas Fort Worth International Airport by American Airlines was forced to make an emergency landing at Los Angeles International Airport due to suspected mechanical failure. A spokesperson for American Airlines stated that before the plane landed, the pilot reported a possible mechanical malfunction.
The European Aviation Safety Agency may revoke Boeing's production license if necessary.
According to CCTV news, Boeing has had multiple accidents this year, and multiple agencies in the United States are investigating this. Due to delayed aircraft delivery, several American airlines will reduce their capacity and personnel recruitment plans.
Southwest Airlines, which mainly operates Boeing 737 series aircraft, announced on March 12 that it expects to only receive 46 737Max aircraft in 2024, compared to the original plan of 79.
United Airlines, on the other hand, stated that due to uncertainty about when certification will be obtained, it has notified Boeing to stop manufacturing its 737Max10 aircraft, and the delivery quantity of Max8 and Max9 aircraft will also be lower than expected.
Due to this impact, United Airlines will suspend the recruitment of pilots for two months. Alaska Airlines, on the other hand, stated that due to the uncertainty surrounding Boeing aircraft deliveries, its capacity forecast for this year is still constantly changing.
On Thursday, Boeing closed at $181.18 per share, down 0.64%.
US Oil Inventory Decline
WTI crude oil closed higher on Thursday
US WTI crude oil closed higher on Thursday, with West Texas Intermediate (WTI) futures for April delivery rising $1.54, or 1.93%, to close at $81.26 per barrel.
According to a report from the US Energy Information Agency, as of the week ending March 8th, US crude oil inventories have experienced a sixth consecutive week of decline, decreasing by 1.5 million barrels to 447 million barrels. This reflects the continuous increase in domestic crude oil demand in the United States.