- 2024-07-25
- News
Fed's Latest Release at Dawn
On Wednesday Eastern Time, the U.S. stock market opened low and continued to decline, with all three major stock indices recording their largest drops in several weeks. By the close, the Dow Jones Industrial Average fell by 0.96%, the S&P 500 index fell by 0.92%, and the Nasdaq Composite plummeted by 1.6%.
In the early hours of October 24th Beijing Time, the Federal Reserve released its national economic conditions survey report, also known as the "Beige Book." Overall, since early September, economic activity in almost all regions has remained essentially unchanged, with most regions reporting a decline in manufacturing activity. Despite increased uncertainty, respondents remain optimistic about the long-term outlook.
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On October 23rd local time, the Federal Reserve issued its latest national economic conditions survey report, the "Beige Book." According to the "Beige Book," in general, since early September, economic activity in almost all regions has remained essentially unchanged, with only the Richmond and Chicago areas showing slight growth, and manufacturing activity has declined in most regions.
Based on the "Beige Book," banking activity is generally stable or slightly increased, with loan demand showing a mixed trend, and some areas noting improvements in the outlook due to lower interest rates. Consumer spending reports show mixed results, with some regions observing changes in the composition of purchases, mainly shifting towards lower-priced alternatives.
Real estate market activity remains generally stable, with a continued increase in housing inventory across most regions of the United States and housing prices remaining stable or slightly rising. Nevertheless, the uncertainty in mortgage interest rate trends still keeps some homebuyers on the sidelines, and the lack of affordable housing remains a long-standing issue in many communities. Despite data centers and infrastructure projects driving activity in some areas, the commercial real estate market is generally flat.
A brief dockworkers' strike caused only a minor temporary disruption to the economy. Damage caused by hurricanes affected crops and led to a temporary halt in business activities and tourism in the Southeast. Agricultural activity is flat or slightly down, with some crop prices still at unprofitably low levels.
Energy activity also remains unchanged or slightly down, with lower energy prices compressing producers' profit margins. Despite increased uncertainty, those involved remain optimistic about the long-term outlook.
Overall, the Federal Reserve's "Beige Book" sends a "dove" signal: the U.S. economy has not changed much, the number of people employed by businesses has increased, inflation levels continue to be moderate, which has somewhat narrowed the losses of the three major U.S. stock indices at the end of the day.
Large-cap technology stocks fell across the board. Among them, Nvidia fell nearly 3%, with its market value evaporating by $98.8 billion overnight (approximately 705.1 billion yuan).
However, Tesla's stock price soared by more than 10% after the market closed. In terms of news, according to a report by China Securities Journal, Tesla's financial report for the third quarter of the fiscal year 2024 showed that the company achieved operating revenue of $25.18 billion during the reporting period, which, although lower than analysts' expectations, showed a significant increase from $23.35 billion in the same period of the previous year. In addition, the company's net profit for the third quarter was $2.167 billion, with adjusted earnings per share at $0.72, and a gross margin of 19.8%, with several indicators exceeding analysts' expectations.Tesla also stated that its Shanghai factory's cost per vehicle sold continues to decrease, with a slight increase in vehicle deliveries expected for 2024, and the new car plan is on track; energy storage deployment is expected to more than double year-over-year in 2024.
In terms of other popular stocks, McDonald's plummeted by over 5%.
In terms of news, on October 22 local time, the U.S. Centers for Disease Control and Prevention published an investigation report on its official website, stating that food-borne E. coli infections have occurred in 10 states across the country. For more details, see previous reports: McDonald's突发！It has caused 49 infections and 1 death, and urgently removed and withdrew raw materials.
In terms of Chinese assets, most popular Chinese concept stocks fell, and the Nasdaq Golden Dragon China Index fell by 1.2%.
Among them, Alibaba fell by 2.45%, JD.com fell by 0.87%, Pinduoduo fell by 4.8%, NIO fell by 0.76%, Bilibili fell by 0.49%, Baidu fell by 2.21%, NetEase fell by 1.22%, Tencent Music fell by 1.78%, and iQIYI fell by 1.94%. The FTSE A50 futures continued to close down by 0.68% in the night session.
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