On Friday, July 12th local time, the three major stock indexes of the US stock market collectively rose. As of the close, the Dow Jones Industrial Average rose 0.62%, the Nasdaq rose 0.63%, and the S&P 500 index rose 0.55%.
In terms of economic data, the US June PPI annual rate was 2.6%, with an expected 2.30%, compared to the previous value of 2.20%.
The Nasdaq China Golden Dragon Index rose 0.60% to 6149.78 points, with a cumulative increase of 4.15% for the week.
June PPI inflation in the United States exceeded expectations
On Friday, July 12th local time, the three major stock indexes of the US stock market collectively rose. As of the close, the Dow Jones Industrial Average rose 247.15 points, or 0.62%, to 40000.90 points; The Nasdaq rose 115.04 points, or 0.63%, to 18398.45 points; The S&P 500 index rose 30.81 points, or 0.55%, to 5615.35 points.
About 80% of the stocks in the S&P 500 index rose and regained the 5600 point mark after falling the previous trading day. Small companies once again outperform the market, achieving their best week of performance in 2024. The three major banks in the United States have kicked off their second quarter earnings season, with Wells Fargo falling more than 6% as the bank's performance was affected by higher than expected costs. Despite announcing record profits, JPMorgan Chase's net interest income did not meet expectations. Citigroup's investment banking revenue increased by 60% to $853 million. The Nasdaq China Golden Dragon Index rose 0.60% to 6149.78 points, with a cumulative increase of 4.15% for the week.
International precious metal futures have generally closed down, with COMEX gold futures falling 0.24% to $2416.0 per ounce and London gold falling 0.17% to $2410.610 per ounce; COMEX silver futures fell 2.04% to $31.025 per ounce, while London silver is now down 2.06% to $30.782 per ounce.
US Treasury yields generally closed lower, with 2-year yields falling 5.8 basis points to 4.468%, 3-year yields falling 5.3 basis points to 4.239%, 5-year yields falling 3.6 basis points to 4.114%, 10-year yields falling 2.5 basis points to 4.192%, and 30-year yields falling 2.3 basis points to 4.401%.
The US June CPI, released on Thursday, exceeded expectations and cooled down. However, data released by the US Bureau of Labor Statistics on Friday showed that the US Producer Price Index (PPI) rose 2.6% year-on-year in June, reaching its highest level since March 2023, with an expected value of 2.3%, compared to the previous value of 2.2%; The PPI in June increased by 0.2% month on month, with an expected increase of 0.1%, compared to the previous value of -0.2%.
Interactive Brokers' Jose Torres said, "Due to the PPI exceeding expectations, this will prevent the Federal Reserve from cutting interest rates for the first time in September
Evercore's Krishna Guha believes that the latest PPI release confirms that the inflation rate in June tended to be moderate and the increase was not significant, which does not affect the Federal Reserve's first interest rate cut in September.
The three major banks in the United States have kicked off their second quarter financial reporting season
In terms of sectors, the 11 major sectors of the S&P 500 index rose 10 times and fell 1. Among them, stocks in the information technology sector led the rise.
Popular technology stocks have mixed ups and downs. Arm rose over 4%, Tesla and Intel rose nearly 3%, Micron Technology, AMD, and ASML rose over 2%, TSMC, Eli Lilly, Nvidia, Cisco, Apple, and Qualcomm rose over 1%, Texas Instruments rose nearly 1%, AMD Semiconductor, Microsoft, Google A, Amazon, Broadcom, and Netflix fell slightly, and Meta rose over 2%.
Tesla rose 2.99%. The EU accuses Musk's social media platform X of misleading users by using blue authentication check marks to make them believe that the authentication account is secure, but in reality, there are malicious operations and potentially harmful content. According to the EU Digital Services Act, X may face fines of up to 6% of its income. In addition, the EU is also concerned about X's violations in advertising transparency and data openness. The EU Internal Market Commissioner has proposed that if violations are confirmed, X will be forced to make significant changes and fined. EU Internal Market Commissioner Thierry Breton said on Friday, "X now has the right to a defense, but if our views are confirmed, we will impose fines and demand significant changes." Musk, on the social media platform X, expressed his anticipation for a public debate with the EU in court.
Amazon fell 0.29%. After five months of consumer testing, Amazon's artificial intelligence shopping assistant Rufus is now available for use by all American customers. Amazon stated in a blog post on Friday that Rufus is a consumer product that utilizes generative artificial intelligence to create text, videos, and images based on simple user prompts. By clicking on the icon in the Amazon smartphone app, shoppers can bring up a text chat interface and ask Rufus a series of questions, such as identifying durable outdoor speaker models, comparing running shoes, or getting order updates.
Apple rose by 1.31%. According to market research firm IDC, the sales of Apple's $3500 VisionPro mixed reality headset, which will be launched this year, will not exceed 500000 units, and it is expected that there will be no significant improvement in sales until a cheaper model is released next year. Since its launch in February, the sales of this device in the United States have not exceeded 100000 units per quarter, and the current quarter's US market is expected to decline by 75%. Although the device was launched in the international market at the end of June this year, its weak performance in the US market will still affect its overall sales. IDC predicts that sales of VisionPro may increase next year with the launch of a more affordable model priced at approximately half of the current model, but there may not be significant growth in the next year. Experts point out that the success of VisionPro will depend on its available content, especially the need to provide localized content when expanding into international markets.
Most energy stocks closed higher. BP, Murphy Oil, Chevron, Shell, and ExxonMobil rose slightly, while US energy closed flat. Western Petroleum, Petrobras, and ConocoPhillips fell slightly.
Most large bank stocks fell. Wells Fargo fell more than 6%, Citigroup and JPMorgan Chase fell more than 1%, Morgan Stanley and Bank of America fell slightly, while Goldman Sachs, BlackRock, and UBS Group rose slightly.
Citigroup fell 1.81%. Citigroup released its second quarter financial report, with a cumulative revenue of $41.243 billion in the first six months of fiscal year 2024, compared to $40.883 billion in the same period last year, a year-on-year increase of 0.88%. The cumulative net profit in the first six months was 6.67 billion US dollars, compared to 7.602 billion US dollars in the same period last year, a year-on-year decrease of 12.26%. The report shows that its investment banking revenue increased by 60%, reaching 853 million US dollars. Mark Mason, the Chief Financial Officer of Citigroup, stated after the financial report release that the announced transaction channels look strong and these transactions will be completed by the end of the year and 2025. He said, "There are many factors at play, including the broader regulatory environment, including elections, the interest rate environment, and how inflation continues to evolve
JPMorgan Chase fell 1.21%. JPMorgan's Q2 financial report shows that its Q2 revenue was $50.99 billion, a year-on-year increase of 20%, and the market estimate is $49.87 billion; The net profit was $18.15 billion, setting a record for the highest single quarter, an increase of 25% year-on-year, or $6.12 per share. JPMorgan Chase set the highest quarterly profit in the history of the US banking industry in the second quarter, but after deducting earnings related to Visa transactions, the net profit was $13.1 billion, or $4.26 per share, which analysts expected to be $4.26. Visa transactions contributed approximately $8 billion to the bank's Q2 profit. Meanwhile, JPMorgan's investment banking business grew by 50%, despite a lower base, higher than the previously predicted growth of 25% to 30%.
Wells Fargo fell 6.02% due to net interest income not meeting analysts' expectations. According to the second quarter financial report of Wells Fargo, its revenue was $20.69 billion, a year-on-year increase of 1%, which was better than market expectations; Net profit was 4.91 billion US dollars, a year-on-year decrease of 1%; Earnings per share of $1.33 exceeded market expectations of $1.29; Net interest income was $11.923 billion, a year-on-year decrease of 9%, which fell short of expectations. The CFO of Wells Fargo stated that expenses related to revenue have driven up the company's costs, and the growth rate of the company's loans has been lower than previously expected. Our risk management efforts remain our top priority, and we will continue to execute our strategy to better serve our customers, "said Charlie Scharf, CEO of Wells Fargo, in a statement
Meanwhile, Goldman Sachs and Morgan Stanley will announce their quarterly results next week. Analysts predict that Goldman Sachs' earnings are expected to more than double compared to the second quarter of 2023, which fell to a three-year low.
Popular Chinese concept stocks fluctuated, with the Nasdaq China Golden Dragon Index rising 0.60% and outperforming the market with a cumulative increase of 4.15% this week. NIO rose over 4%, Pinduoduo rose over 2%, New Oriental, Xiaopeng Motors, Alibaba, and NetEase rose over 1%, Tencent Music rose over 1%, Huya, Futu Holdings, Ideal Auto, and Manbang fell slightly, Weibo, Douyu, Baidu, JD.com, and iQiyi fell over 1%, and Bilibili fell over 5%.