On Friday, July 12th Eastern Time, all three major stock indexes in the United States closed higher. The PPI in the United States increased by 0.2% month on month in June, slightly higher than market expectations.
Several bank stocks fell due to the failure to deliver satisfactory financial reports to investors.
WTI crude oil and Brent crude oil have ended four consecutive weeks of gains, both recording declines this week.
June PPI increase slightly higher than expected
As of the close, the Dow Jones Industrial Average rose 0.62% to 40000.9 points, the S&P 500 index rose 0.55% to 5615.35 points, and the Nasdaq rose 0.63% to 18398.45 points.
This week, the Dow Jones Industrial Average rose 1.59%, the S&P 500 index rose 0.87%, and the Nasdaq rose 0.25%.
In terms of economic data, the US June PPI increased by 2.6% year-on-year, with an expected increase of 2.3%, and the previous value increased by 2.2%; The month on month increase is 0.2%, with an expected increase of 0.1%. The previous value has been revised from a decrease of 0.2% to remain unchanged.
The core PPI increased by 3.0% year-on-year, with an expected increase of 2.5%. The previous value was revised from a 2.3% increase to a 2.6% increase; The month on month increase is 0.4%, with an expected increase of 0.2%. The previous value has been revised from flat to a 0.3% increase.
Financial report disappoints the market
Bank stocks generally fell
Due to the failure to deliver satisfactory financial reports to investors, bank stocks generally fell. JPMorgan Chase fell 1.21%, Goldman Sachs rose 0.14%, Citigroup fell 1.8%, Morgan Stanley fell 0.53%, Bank of America fell 0.5%, and Wells Fargo fell 5.97%.
Due to lower than expected net interest income, the stock price of Wells Fargo plummeted by nearly 6%; Citigroup's revenue exceeded expectations but expenses attracted market attention, and its stock price was also affected.
In addition, the three banks that released their financial reports on Friday have all raised their 2024 cost targets, mainly due to regulatory fines, error correction costs, and other reasons.
Wells Fargo's Q2 revenue was $20.689 billion, compared to $20.533 billion in the same period last year; Net profit was 4.91 billion US dollars, compared to 4.938 billion US dollars in the same period last year. According to the financial report, Wells Fargo repurchased over $12 billion worth of stocks in the first half of the year.
Citigroup's Q2 revenue was $20.139 billion, up 4% year-on-year; Net profit of 3.217 billion US dollars, up 10% year-on-year; The book value per share is $99.7, up 2% year-on-year.
JPMorgan Chase's Q2 revenue was $50.2 billion, compared to $41.307 billion in the same period last year; Net profit of 18.149 billion US dollars, compared to 14.472 billion US dollars in the same period last year; Diluted EPS was $6.12, compared to $4.75 in the same period last year; Expected net interest income for the fiscal year 2024 is approximately $91 billion.
Meta lifts restrictions on Trump accounts
Most technology stocks fell, with Apple up 1.31%, Amazon down 0.29%, Netflix down 0.79%, Google down 0.3%, Facebook down 2.84%, Microsoft down 0.22%, and Tesla up 2.99%.
According to Sina, Facebook's parent company Meta Platforms Inc. has lifted a series of restrictions on former US President Donald Trump's account, expressing a desire to ensure that candidates have equal opportunities for political expression before the 2024 election.
According to comprehensive media reports, the European Commission, the EU's antitrust regulator, ruled on Friday that Musk's social platform X violated the EU's online content rules. This investigation result may result in X being fined and making significant adjustments to its operating methods.
The EU regulatory agency stated that social media platform "X" used dark modes to deceive users, failed to comply with transparency obligations, and prevented researchers from obtaining data. If the investigation results confirm, X will be fined up to 6% of annual turnover.
WTI and Brent crude oil futures end four week consecutive gains
The WTI futures price for August delivery closed down $0.41, a decrease of 0.50%, at $82.21 per barrel. According to the most active contract calculation, WTI crude oil fell 1.14% this week.
The Brent crude oil futures price for September delivery fell 37 cents, or 0.43%, to close at $85.03 per barrel. Brent crude oil fell 1.74% this week.
Most popular Chinese concept stocks have risen
Most popular Chinese concept stocks rose, with Legend Biotech up 12.1%, Hehuang Pharmaceutical up 9.11%, Bit Digital up 7.65%, Bit Deer up 3.93%, Yihang Intelligence up 3%, Jianan Technology up 2.88%, Daquan New Energy up 2.77%, Shuodi Biotechnology up 2.62%, Shengmei Semiconductor up 2.6%, and Zhiwen Group up 2.54%.
In terms of decline, Zhihu fell 6.34%, Bilibili fell 5.16%, and Dajian Cloud Warehouse fell 2.78%.
China's new energy vehicle stocks fluctuated, with NIO rising 3.95%, Xiaopeng Motors rising 1.67%, and Ideal Motors falling 0.61%.