**: Global Market Broadcast.
On the evening of the 20th, Beijing time, U.S. stocks continued to slide in early trading on Tuesday, with technology stocks leading the decline, with the Nasdaq **13%。A series of recent economic data showed that inflation in the United States remains high, causing investors to reduce their bets on the timing and magnitude of the Fed's rate cuts. The market pays attention to corporate earnings and M&A transactions. Nvidia will report its much-anticipated earnings report on Wednesday.
The Dow fell 3552 points, a decrease of 009% to 3859247 points; The Nasdaq fell 20542 points, a decrease of 130% at 1557023 points; The S&P 500 fell 3375 points, a decrease of 067% at 497182 points.
The U.S. market is closed on Monday for U.S. Day (in honor of Washington's birthday).
The financial sector was in the spotlight on Tuesday after Capital One Financial announced that the company was preparing to acquire Discover Financial Services in an all-** deal worth $35.3 billion. The transaction is expected to close in late 2024 or early 2025 and Discover shareholders will be offered a 1:1 ratio0192 in exchange for Capital One**.
In another deal news, Walmart announced that it would sell $2.3 billion (or 11. per share.)$ 50) ** acquired by TV manufacturer Vizio.
On Tuesday's economic data front, the Conference Board reported that the index of leading economic indicators in the United States fell by 04% against an expected decrease of 030%, the previous value was down 010%。
In terms of corporate financial reports, Home Depot's earnings exceeded expectations, but sales fell short of expectations. Traders are still awaiting earnings reports from Walmart and Palo Alto Networks, among others.
This week's Nvidia earnings report will be in focus. Nvidia's earnings report, which will be released on Wednesday, may provide a new impetus for **.
Nvidia has surpassed Tesla in terms of trading volume and ranks among the top U.S. stocks in terms of market capitalization, as it is expected to be a big winner in the development of artificial intelligence, and companies related to AI technology have become the center of investors' attention.
However, some analysts pointed out that such a large volume also means that if Nvidia's revenue growth does not meet the high expectations of investors, these investors could be extremely risky and undermine the momentum generated by the optimism about AI in the United States.
Charles-Henry Monchau, chief investment officer at Banque Syz, said: "Nvidia's results on Wednesday could be a turning point for the market. The market relies on a small number of large growth models, and if their performance disappoints for any reason, there is a risk of it. ”
JPMorgan Chase & Co. reported that 78% of S&P 500 companies that have reported earnings beat their profits, up 5% year-on-year. Nearly 70% of S&P 500 companies reported fourth-quarter results, with weak performance in commodities and healthcare, while discretionary, technology and communication services were the main drivers of earnings growth, the bank said.
According to JPMorgan Chase & Co., excluding the fourth-quarter earnings results of the "Big Seven" of U.S. stocks, earnings per share growth of U.S. companies fell 4% year-on-year. In terms of revenue, 57% of companies beat sales expectations, and overall revenue increased 4% year-over-year. Energy, Materials, and Utilities saw negative growth at the sector level.
All three major U.S. stock indexes posted losses last week, ending a five-week streak of declines. The tech-heavy Nasdaq Composite led the decline, falling more than 13%, compared to about 0 for the benchmark S&P 500**4%。The blue-chip Dow Jones fell the least, only about 01%。
As the S&P 500 crossed the important milestone of 5,000 this month, Goldman Sachs strategists raised their ** for the second time this year.
A team of Goldman Sachs analysts, led by D**ID Kostin, said: "The upward revision of profit estimates is the driver of the revised expectations. The team now expects the S&P 500 to rise to 5,200 by the end of the year, up about 2% from its mid-December** of 5,100.
Last November, Kostin's team** the S&P 500 will hit 4,700 points by the end of 2024 by the end of the year.
UBS strategists raised their price target on the S&P 500 to 5,400 from 5,150 on January 16, on par with Yardeni Research, the highest on Wall Street.
Producers** (PPI) data released last Friday showed that U.S. wholesale** rose more than expected in January. The data added to concerns about sticky inflation. And the Consumer Index (CPI) released earlier last week was 3 year-on-year1%, which is higher than economists' ** and well above the Fed's 2% target.
Bill Adams, chief economist at Comerica Bank, said: "The Fed will be concerned about the CPI and PPI reports for January. Over the past few years, inflation has gained momentum and persists in many corners of the economy. January's inflation data will reinforce the Fed's propensity to cut interest rates slowly in 2024. ”
Markets are now pricing in a Fed rate cut of about 100 basis points this year, and the ECB will cut rates just a little more. But the overall better-than-expected economic data is good news for **.
Peter Schaffrik, chief European macro strategist at RBC Capital Markets, said: "If you're in an environment where the economy is stronger than you thought it would be, and inflation is going to stay a little sticky, that means nominal earnings are going to remain decent. ”
Focus**. Nvidia will release its financial results for the fourth quarter of fiscal year 2024 ending at the end of January 2024 after the U.S. stock market on Wednesday (Thursday Beijing time). Wall Street analysts are optimistic about the quarter's results, saying Nvidia will report strong financial data, driven by AI demand, especially in the data center business.
There are reports that Nvidia surpassed Tesla to become the largest trading volume in the United States. Previously, Nvidia was already the third-largest company in the United States by market capitalization. This evidence suggests that companies related to AI technology are at the center of investors' attention.
Musk revealed on social platform X on Tuesday that the first human subject of Neuralink "appears to have been fully ** and able to move the mouse around a computer screen using only his thoughts." Musk added that Neuralink is currently trying to get subjects to click as much of the mouse as possible.
Apple is reportedly still actively advancing the research and development project for a foldable iPhone, after it was reported that the company was pausing the project due to concerns about the durability of the folding screen.
According to the report, Apple has transferred some key personnel from the Apple Vision Pro team to the project team. A person close to Apple's internal plans said the company is actively working on a foldable iPhone and provided an estimated release time for the product, saying that Apple will sell foldable iPhones around September or October 2026.
Retail giant Walmart's fourth-quarter revenue was $173.4 billion, up 5% year-on-year7%, better than the market expectation of $170.7 billion. Operating profit was 72$5.4 billion, a year-on-year increase of 304%；Net profit attributable to the Company was 54$9.4 billion, down 124%。Adjusted earnings per share were 1$80, better than the market expectation of 1$65.
The company also announced that it has agreed to acquire smart TV maker Vizio Holding Corp for about $2.3 billion. The deal will accelerate the company's advertising business, called "Walmart Connect," and help it engage more with its customers. Walmart has been expanding "Walmart Connect" and other faster-growing, higher-margin non-retail businesses.
Medtronic's fiscal third-quarter revenue was $8.1 billion, up 47%, better than market expectations, revenue grew organically by 46%。Non-GAAP EPS was 1$30, also better than market expectations.
Home Depot sales fell for the fifth straight quarter, highlighting lower demand for home improvements due to high mortgage rates and a slowdown in the construction industry. The company's fiscal fourth-quarter comparable sales fell 35%, the market expects a decline of 36%。Earnings per share for the fiscal fourth quarter were 2$82, compared to the consensus of $2$78, compared to $3 in the same period last year$30.
Barclays' revenue in 2023 was £25.4 billion, up 2% year-on-year; Profit before tax was £6.6bn, down 6% year-on-year, in line with analysts' expectations. In addition, Barclays said it would restructure its business unit and would return £10 billion to shareholders between 2024 and 2026. The bank said it aims to achieve a return on tangible equity of more than 10% in 2024 and improve to more than 12% in 2026. Barclays also said it would cut costs by £2bn by 2026.