On Wednesday, the three major indices closed higher, with the Dow Jones Industrial Average (DJIA) reaching a new record high. Scott Rubner, Managing Director and Tactical Specialist at Goldman Sachs Global Markets, expects this U.S. stock benchmark index to close the year well above 6,000 points.
**U.S. Stocks**: As of the close, the DJIA rose by 337.28 points, a gain of 0.79%, to 43,077.70 points; the Nasdaq Composite Index increased by 51.49 points, a gain of 0.28%, to 18,367.08 points; the S&P 500 Index gained 27.21 points, a gain of 0.47%, to 5,842.47 points. Nvidia (NVDA.US) rose by 3%, Apple (AAPL.US) fell by nearly 1%, Intel (INTC.US) dropped by 1.5%, and ASML (ASML.US) fell by over 6%. The NASDAQ Golden Dragon China Index closed up by 0.93%, Alibaba (BABA.US) rose by 0.35%, NIO Inc. (NIO.US) fell by nearly 2%,贝壳 (BEKE.US) increased by 4.5%, and Fangdd (FANG.US) closed up by 55.43%.
U.S. financial stocks rose by 1.2% on Wednesday, outperforming the S&P 500 Index and closing at a record high. Major Wall Street banks continued to release strong earnings reports, with Morgan Stanley (MS.US) exceeding market expectations. Morgan Stanley surged by 6.5%, marking its largest increase in nearly four years, closing at a record high of $119.51; third-quarter profits soared by 32%, with trading revenue up by 13%; wealth management revenue reached $7.27 billion, higher than analyst expectations. Bank of America (BAC.US) rose by 1.6%, JPMorgan Chase (JPM.US) increased by 0.6%, Goldman Sachs (GS.US) closed up by 1.4% at a record high, Citigroup (C.US) rose by 2.6%, and Charles Schwab (SCHW.US) increased by 0.2%.
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**European Stocks**: The German DAX 30 Index fell by 72.56 points, a drop of 0.37%, to 19,448.35 points; the UK FTSE 100 Index rose by 79.11 points, a gain of 0.96%, to 8,328.39 points; the French CAC 40 Index fell by 29.97 points, a drop of 0.40%, to 7,492.00 points; the EURO STOXX 50 Index fell by 38.08 points, a drop of 0.77%, to 4,908.65 points; the Spanish IBEX 35 Index rose by 70.76 points, a gain of 0.59%, to 12,000.96 points; the Italian FTSE MIB Index increased by 85.55 points, a gain of 0.25%, to 34,664.00 points.
**Asia-Pacific Stocks**: The Nikkei 225 Index fell by over 1.8%, the Indonesia Jakarta Composite Index rose by 0.29%, and the Vietnam VN30 Index fell by 0.15%.
**Cryptocurrencies**: Bitcoin rose by 0.74%,报价 at $67,549.68 per coin; Ethereum increased by 0.25%,报价 at $2,612.83 per coin.
**Gold**: COMEX gold futures rose by 0.41%,报价 at $2,689.90 per ounce; spot gold increased by 0.42%,报价 at $2,673.75 per ounce.
**Oil**: The November delivery of West Texas Intermediate (WTI) crude oil futures on the New York Mercantile Exchange closed down by $0.19, a drop of approximately 0.27%, at $70.39 per barrel. Brent crude oil futures for December delivery closed down by $0.03, a drop of about 0.04%, at $74.22 per barrel.
**Metals**: London metals experienced mixed movements, with zinc up by 0.49%, nickel down by 0.52%, aluminum up by 0.58%, and copper up by 0.75%.
**Macro News**:U.S. mortgage rates have risen to their highest levels since early August. U.S. mortgage rates have seen a significant increase for the second consecutive week, reaching their highest levels since early August, which has led to a substantial decline in housing purchases and refinancing activities. Data released by the Mortgage Bankers Association (MBA) on Wednesday showed that as of the week ending October 11th, the 30-year fixed mortgage rate rose by 16 basis points to 6.52%. Over the past two weeks, this rate has climbed by 38 basis points, marking the highest level for the same period since February 2023. The 15-year fixed rate jumped by 23 basis points to 5.94%, representing the largest increase since May. Mortgage rates, which track U.S. Treasury yields, have been on the rise recently, with reports of strong job growth and persistent inflation prompting traders to reduce bets on significant rate cuts. The increase in mortgage rates is shattering hopes for a rapid recovery in the housing market.
Goldman Sachs trading department: S&P 500 index expected to rise to 6,270 points by the end of the year. The S&P 500 index has closed at a new high 46 times this year, and the trading team at Goldman Sachs Group says this trend is likely to continue into the final months of 2024. Scott Rubner, Managing Director of Global Markets and tactical expert at the bank, expects this U.S. stock benchmark index to close the year well above 6,000 points. His calculations, based on data dating back to 1928, show that the historical return rate of the S&P 500 index between October 15th and December 31st has a median value of 5.17%.
San Francisco Fed research: Foreign inflation affects U.S. prices. The latest research from the San Francisco Fed finds that domestic conditions such as the labor market and economic expectations are important determinants of U.S. inflation, but international inflation from other large economies also plays a role. The Fed's economists, after studying global economic data from the past few years, believe that international inflation contributed approximately 4 percentage points to the rise in goods prices in the U.S. economy during the pandemic, and 3 percentage points to the decline in goods prices since 2023, after controlling for domestic conditions and other factors. The economists added that the impact of foreign inflation on U.S. service sector inflation appears to be smaller. The International Monetary Fund's recent emphasis on a global soft landing may help further reduce inflation in the U.S.
Lagarde: For Europe, today's global economic changes represent a turning point. European Central Bank President Christine Lagarde said that for Europe, today's global economic changes represent a turning point. But if we approach it with the right spirit, I believe it can become an opportunity for renewal. A less favorable global economy can push us to complete our internal market. Intense foreign competition can encourage us to develop new technologies. More unstable geopolitics can push us to become more secure and self-sufficient in our energy supply chain.
[Stock News]
Amazon (AMZN.US) invests in next-generation nuclear power. Amazon and billionaire financier Ken Griffin, among others, have decided to invest $500 million in small nuclear reactors. Small nuclear reactors are an emerging technology hailed as the next era of atomic energy. X-Energy, the private nuclear reactor developer receiving this investment, said in a statement on Wednesday that the financing will help cover the development costs of new power projects exceeding 5 gigawatts to be launched in the United States by 2039. Amazon announced this news as technology companies are looking for new energy supplies to power the large data centers needed to run artificial intelligence systems. Google, owned by Alphabet Inc., announced support for nuclear power plants on Monday and signed an agreement with Kairos Power to build a series of small reactors using molten salt cooling technology.
Morgan Stanley (MS.US) Q3 results exceed expectations with a 13% increase in trading revenue. Morgan Stanley's traders and bankers, like other Wall Street competitors, have announced revenue results that exceeded expectations, driving a significant increase in profits for the third quarter. The bank's trading revenue for the third quarter increased by 13%. Prior to this, Morgan Stanley's competitors have recorded profits as market business has boosted profits across the industry, and a steady rebound in investment banking fees has added to deal-making commissions. CEO Pick has stated that the investment banking business is at a turning point in a multi-year cycle, which will be a boon for the company as investment banking fees rebound. The bank also assured the market that the profit margins of its vast wealth management business would rise significantly. The bank's wealth division reported revenues of $7.27 billion for the third quarter, above analysts' expectations, with net new assets of $64 billion.
ASML (ASML.US) plunge shows divergent fortunes for chipmakers as AI-related demand surges while other areas falter. Since disclosing weak orders for its chip manufacturing equipment, ASML has seen its market value evaporate by over €60 billion ($65.3 billion), forcing investors to reassess the health of the industry. Following a 16% plunge on Tuesday, the largest drop in 26 years, the Dutch company fell as much as 5.8% on Wednesday. ASML, which holds a monopoly in producing the most advanced chip manufacturing equipment, is a barometer for the health of companies like Intel, Samsung Electronics, and TSMC. Its underwhelming performance triggered a broad sell-off in the semiconductor sector. Its financial report shows divergent fortunes for chipmakers, with surging demand for semiconductors capable of handling the complex loads of artificial intelligence (AI) programs, while other areas experience low demand. ASML did not provide specific reasons for why third-quarter orders were less than half of analysts' predictions, merely stating that some customers had postponed factory construction.
Apple (AAPL.US): Over 80 Chinese suppliers are striving to produce Apple products using only renewable energy by 2030. Apple Vice President and Managing Director of Greater China, Isabel Ge Mahe, introduced at the Sina ESG Global Leaders Summit on the 16th that a significant amount of Apple's environmental efforts are based on the "Apple2030" initiative, which aims to achieve carbon neutrality across the entire value chain by 2030. Over 320 manufacturers worldwide have made commitments to use 100% clean energy to produce products for Apple by 2030. These represent over 95% of Apple's direct manufacturing expenditures. This also includes over 80 suppliers in China who are working to transform in order to use 100% renewable energy to produce Apple products by 2030. Additionally, 2024 marks the 10th anniversary of the "Apple Supplier Zero Waste Program." Over 300 supplier factories in Mainland China are participating in this program, including all assembly plants that have been established. Over the past decade, Chinese suppliers have successfully reduced more than 2.5 million tons of waste that needed to be landfilled.
[Major Bank Ratings]Citi: Upgrades Cisco (CSCO.US) stock rating from "Neutral" to "Buy"
Truist Securities: Raises Alphabet (GOOG.US) target price from $196 to $220
Barclays: Increases JD.com (JD.US) target price from $40 to $50