U.S. Stocks
Fundamental Analysis:
U.S. stocks closed mixed on Tuesday, 14th February 2023, after the release of U.S. consumer price data for January did little to change expectations about the Fed’s path of interest rate hikes.
U.S. consumer prices accelerated as people continued to be troubled by higher rental costs, signaling that the Federal Reserve will continue to fight inflation.
Seven of the 11 sectors in the S&P 500 closed lower, with the real estate sector down a quick 1.08%, followed by the consumer discretionary sector, down 0.95%.
The non-essential consumer goods sector rose 0.30%, helped by a nearly 8% surge in Tesla, which has rallied more than 60% so far this year after losing two-thirds of its market value last year.
The market expects the Fed to make at least two more 25 basis point rate hikes this year, with rates peaking at 5.28% by July.
Hawkish statements from Federal Reserve Bank of Richmond President Balkin and Dallas Fed President Logan also added to the market’s anxiety.
Barkin said the Fed needs to prioritize curbing inflation over risks to U.S. economic growth.
Wall Street’s upbeat start to the year has been aided by renewed interest in volatile growth stocks.
Such stocks were hit in 2022 as the Federal Reserve aggressively raised interest rates to rein in price gains. However, the rally stalled last week after signs of a tightening labor market and hawkish statements from Fed policymakers.
So far in 2023, the S&P 500 is up about 8% and the Nasdaq is up about 14%.
Investors will be closely watching January retail sales data due out Wednesday for clues about consumer spending amid concerns about a slowing economy.
Marriott International shares rose 4% after the hotel operator expected first-quarter earnings to top Wall Street expectations, benefiting from strong travel demand.
Technical Analysis:
(Dow 30, 1-hour chart)
Execution Insight:
The Dow pays attention to the 34221-line. If the Dow runs stably above the 34221-line, then pay attention to the suppression strength of the 34477 and 34724 positions.
Hong Kong Stocks
Fundamental Analysis:
U.S. CPI growth exceeded expectations, and U.S. stocks were mixed overnight.
The Hang Seng Index (HSI) basically opened flat, the Hang Seng China Enterprises Index (HSCEI) rose 0.17%, the Hang Seng TECH Index (HSTECH) rose 0.27%.
On the market, most of the large technology stocks rose, Baidu, Inc. (9888.HK), Tencent Holdings Limited (0700.HK) rose 1%, JD.com, Inc. (9618.HK), Meituan (3690.HK), Kuaishou Technology (1024.HK) were up, NetEase, Inc. (9999.HK) fell 1%.
Auto stocks rose across the board, Li Auto Inc. (2015.HK), Great Wall Motor Company Limited (2333.HK) were up more than 1%, Apple concept stocks, gas stocks, semiconductor stocks, restaurant stocks, and three tire concept stocks generally rose.
On the other hand, biotechnology stocks were partly lower, Brii Biosciences Limited (2137.HK) fell 6%, sporting goods stocks ANTA Sports Products Limited (2020.HK) fell nearly 4%.
i-CABLE Communications Limited (1097.HK) resumed trading up nearly 45% as Hong Kong Cable TV was approved to terminate its local pay TV program service license.
Technical Analysis:
(HK50, 1-hour chart)
Execution Insight:
HK50 pays attention to the 21450-line today. If HK50 can run stably above the 21450-line, then pay attention to the suppression strength at the two positions of 22127 and 22785.
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