U.S. Stocks
Fundamental Analysis:
U.S. stocks closed lower Thursday, 20th October 2022, as jobs data and comments from Federal Reserve officials reinforced expectations that the Fed will raise interest rates aggressively, overshadowing a series of strong corporate earnings.
Stocks rose early in the session, buoyed by gains in shares of companies such as IT services firm IBM, which on Wednesday reported quarterly earnings that beat expectations and said it expects to beat its full-year revenue growth target, and rose 4.73%.
AT&T shares jumped 7.72% after it raised its annual profit forecast.
Stocks failed to hold on to gains as strong initial jobless claims data last week and comments from Federal Reserve Bank of Philadelphia Chairman Harker sharply raised concerns about the Federal Reserve raising interest rates and potentially sending the economy into recession.
So far, better-than-expected results have pushed third-quarter earnings growth estimates for S&P 500 component companies to 3.1%, up from 2.8% earlier this week, but still well below the 11.1% growth forecast in early July.
Electric car maker Tesla Inc. slipped 6.65% after the company warned that fourth-quarter new vehicle delivery growth would fall short of its previously set 50% target due to ongoing logistical challenges.
Stocks have been under pressure so far this year as concerns grow about the impact of the Fed’s aggressive rate hike path on corporate earnings and the overall economy as the Fed moves to quell stubbornly high inflation.
Home sales fell for the eighth consecutive month, while another data showed that factory activity in the Federal Reserve Bank of Philadelphia area shrank again in October.
The Fed is widely expected to raise interest rates by 75 basis points for the fourth consecutive time at its November meeting, and outsiders believe it is possible to add a full percentage point.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow focuses on the 30416-line today. If the Dow runs steadily above the 30416-line, it will pay attention to the suppression strength of the 31000 and 31265 position. If the Dow runs steadily below the 30416-line, it will pay attention to the support strength of the 30044 and 29620 positions.
Hong Kong Stocks
Fundamental Analysis:
Overnight, U.S. stocks fell again, Chinese stocks rebounded against the trend.
Hong Kong stocks, which hit new adjustment lows yesterday, opened higher, with the Hang Seng Index (HSI) up 0.31%, the Hang Seng China Enterprises Index (HSCEI) up 0.42%, and the Hang Seng TECH Index (HSTECH) up 0.91%.
On the market, large technology stocks generally rebounded, JD.com, Inc. (9618.HK) rose 3.46%, and Xiaomi Corporation (1810.HK) rose 1.65%. Meituan (3690.HK), Kuaishou Technology (1024.HK), and ALIBABA (1688.HK) opened slightly higher. XPeng Inc. (9868.HK) rose 2.6%, Tencent Holdings Limited (0700.HK) fell slightly 0.17%.
Transfer financing rate cut, Chinese securities stocks rose across the board, Guolian Securities Co., Ltd. (1456.HK) jumped more than 9% leading the rise, GF Securities Co., Ltd. (1776.HK), Everbright Securities Company Limited (6178.HK), and Guotai Junan Securities Co., Ltd. (2611.HK) are up.
Internet medical stocks, paper stocks, most of the gambling stocks and gas stocks rose.
On the other hand, medical stocks fell significantly, telecom stocks, building materials and cement stocks, restaurant stocks fell in general.
Central China Securities Co., Ltd. (1375.HK) lowered its transfer rate again after 3 years to provide liquidity support for the stock market, and Chinese brokerage stocks in Hong Kong stock market opened higher.
Guolian Securities Co., Ltd. (1456.HK) rose nearly 10%, Everbright Securities Company Limited (6178.HK) rose 4%, GF Securities Co., Ltd. (1776.HK), China International Capital Corporation Limited (3908.HK), Haitong International Securities Group Limited (0665.HK), CSC Financial Co., Ltd. (6066.HK) rose more than 2%. Guotai Junan Securities Co., Ltd. (2611.HK), Huatai Securities Co., Ltd. (6886.HK), CITIC Securities Company Limited (6030.HK), Orient Securities International Holdings Limited (8001.HK), etc. rose more than 1%.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 focuses on the 16964-line today. If HK50 can run stably above the 16964-line, then pay attention to the suppression strength of the 17535 and 18606 positions. If the HK50 runs below the 16964-line, then pay attention to the support strength of the 15995 and 15136 positions.
FTSE China A50 Index
Technical Analysis:
(FTSE China A50, 1-hour chart)
Execution Insight:
FTSE China A50 pays attention to the 12336-line today. If the A50 runs steadily below the 12336-line, pay attention to the support strength of the two positions of 12135 and 11955. If the A50 runs above the 12336-line, it will open up further upward space. At that time, pay attention to the two positions of 12659 and 12900.
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