In the early morning of the 15th Beijing time, US stocks closed up and down on Friday. All major stock indexes recorded gains on Wednesday. US retail sales growth in July was lower than market expectations. The market is still weighing U.S. labor market data against a stalemate in fiscal stimulus negotiations.
on Friday, Dow Jones index components Walgreen United boots group closed up 2.2%, Boeing rose 1.9%, Dow rose 1%, United Health Group rose 0.7%, Intel rose 0.7%, Chevron rose 0.6%, Raytheon technology rose 0.6%, Wal Mart, ExxonMobil and Verizon communications all rose about 0.5%.
in terms of economic data, the U.S. Department of Commerce reported that retail sales in the United States increased by 1.2% in July, significantly slowing down from 8.4% in June and lower than 1.9% expected by the market. However, the monthly rate of core retail sales excluding cars exceeded market expectations, slowing to 1.9% from 8.3% in June, but exceeding market expectations of 1.3%.
according to the analysis, this data shows that the rebound speed of retail sales in the United States slowed down in July, but the total retail sales exceeded the level before the epidemic; and the retail sales in July increased by 2.7% year-on-year, indicating that the main part of the economy has returned to the previous trend.
since the survey time of the retail sales data is before the end of the federal government’s supplementary unemployment benefits, it can not reflect the latest consumer situation. Retail sales are expected to slow further or even shrink again in August, given the deadlock in the new stimulus package.
Meanwhile, market participants continued to digest Thursday’s jobless claims data. On Thursday, the U.S. Department of Labor reported that the number of new jobless claims fell to less than 1 million for the first time since the outbreak of the epidemic last week. Some analysts warned that the data, while reflecting an improvement in labor market conditions from the lowest point during the outbreak, could also reduce pressure on lawmakers to pass a new stimulus bill quickly.
the US Senate, which began its August recess on Thursday, failed to pass a new anti epidemic relief bill because there was no sign of easing the deadlock among the main negotiators. Senators and representatives will not return to Washington until after labor day. But Senate Majority Leader Mitch McConnell said the Senate will hold a formal meeting during the recess, and if an agreement is reached, senators will return to Washington to vote.
U.S. House Speaker Pelosi said on Thursday that he was far from the Republican Party’s position, and the Senate began a three-week recess, which means that Congress will not reach a new round of stimulus plan before September.
a request for about $1 trillion in aid to troubled States was opposed by the White House. The two sides did not compromise on this point, and a new round of federal anti epidemic relief stimulus plan stalled.
Robert Redfield, director of the United States Centers for Disease Control and prevention, warned that the simultaneous outbreak of influenza and coronavirus will lead to severe epidemic situation in the United States this autumn. “If we don’t follow [health] advice, it’s probably the worst autumn we’ve had from a public health point of view,” he said. In addition to measures to combat the spread of coronavirus, people should also be vaccinated against influenza
iqiyi said the company was under investigation by the US Securities and Exchange Commission. The SEC is seeking financial and operational records since January 2018, as well as documents related to acquisitions and investments mentioned by short seller Wolfpack research in its April report. Iqiyi said the company was cooperating with the investigation and had hired consultants for internal audit. The company was unable to predict the duration and outcome of the SEC investigation.
apple (AAPL) closed down 0.1%, the stock hit an all-time high on Thursday. According to reports, Apple plans to launch the apple one subscription bundle as early as October this year, allowing consumers to subscribe to Apple’s music, video (Apple TV +), games, news, fitness, icloud and other services at a lower price. It is understood that the bundle is designed to encourage customers to order more apple’s paid services. It can also help Apple get more stable income. Apple one may come with the iPhone 12 series.
it was also reported that apple and Google removed the game fortress night from their app stores on Thursday for violating in app payment guidelines, leading to an antitrust lawsuit filed by Epic Games, the developer of Fortress night, against two technology giants. Instead of demanding compensation from apple and Google, Epic Games stopped many of the companies’ practices in their respective app stores.
Novavax medicine rose sharply and the company will provide 60 million doses of candidate vaccine to the British government. Novavax said it would provide the UK government with 60 million doses of the candidate vaccine nvx-cov2373 for phase III clinical trials. The company also said it would supply the nvx-cov2373 vaccine to the UK as early as the first quarter of 2021.
the third quarter performance of Applied Materials exceeded expectations with strong guidance. Gary Dickerson, CEO of applied materials, said in a conference call that “the demand for semiconductor equipment is increasing” and “it will continue to grow in 2021”.
Tesla was upgraded to hold by Morgan Stanley. Adam Jonas, an analyst at Morgan Stanley, raised Tesla’s rating from “underweight” to “hold” and raised its target price to $1360 a share from $1050.
gold futures closed lower on Friday, falling after two consecutive days of gains. Gold posted its first weekly loss in 10 weeks as US Treasury yields recently strengthened.
Chris Gaffney, President of world markets at TIAA bank, said the week began with a record high gold price, but ended with “several factors holding down the fall in gold prices”, including hopes for a coronavirus vaccine and an increase in bond yields. The rise in bond yields is part of the reason for the weakness in gold, which does not provide yields.
at the close of the gold futures market on Friday, the yield on us 10-year Treasury bonds rose to 0.693%, an eight week high. On Friday, the yield was 0.562%.
Gaffney said: “in the current environment, the holding cost of gold is negative, and investors are not willing to sacrifice their interests to hold hard assets such as gold.”
gold futures for December delivery on the New York Mercantile Exchange fell $20.60, or nearly 1.1%, to $1949.80 an ounce. In terms of the most active contracts, gold futures fell 3.9% this week for the first time in 10 weeks. On Tuesday, gold futures recorded the largest one-day drop in the dollar since April 15, 2013.
silver futures for September delivery fell $1.63, or 5.9%, to $26.089 an ounce. Silver futures fell 5.3% this week.
crude oil futures closed lower on Friday, partly due to the pessimistic expectations of global demand released by some important organizations this week. But crude oil futures continued to gain this week as US crude oil inventories fell.
Michael Hewson, chief market analyst at CMC markets UK, said: “the US Energy Information Agency (EIA), the organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) all lowered their energy demand expectations this week.”
global oil demand is expected to shrink by 8.1 million barrels a year to 91.9 million barrels a day in 2020, the IEA said in its monthly report released on Thursday.
OPEC said in its monthly report released on Wednesday that global oil and liquid fuel demand will drop by 9.1 million barrels a day to 90.6 million barrels a day in 2020.
the EIA’s monthly report on Tuesday predicted that global oil demand would be 93.1 million barrels per day in 2020, down 8.1 million barrels compared with 2019.
Marshall steevs, energy market analyst at IHS Markit, said: “the demand outlook is still seriously affected by the coronavirus epidemic, and the stalemate in Washington over the fiscal stimulus plan for the relief of the epidemic has also brought uncertainty to the oil price outlook.”
WTI futures for September delivery on the New York Mercantile Exchange fell 23 cents, or 0.5%, to $42.01 a barrel.
Brent crude oil futures for October delivery on the Intercontinental Exchange of London fell 16 cents, or 0.4%, to $44.80 a barrel.