U.S. Stocks Mixed Ahead of PCE Data; Ideal Automobiles Surge Over 11%

The U.S. stocks saw mixed movements on Tuesday, with major indices hitting record highs before plateauing.

Investors remained focused on corporate earnings and awaited crucial Personal Consumption Expenditures (PCE) inflation data expected later this week.

At least 10 Federal Reserve officials are scheduled to speak this week.

Earnings reports continued to dominate market attention. The most significant economic data for the U.S. stock market this week is the Personal Consumption Expenditures (PCE) Price Index and personal income data set to be released on Thursday.

Investors are poised to use these figures to gauge the health of the U.S. economy and delve into the Federal Reserve’s monetary policy trajectory.

According to data from Deutsche Bank’s latest research, the financial strength of the “Big Seven” in the U.S. stock market has surpassed that of any stock market in the world.

Ross Mayfield, an analyst at Baird Investment Strategy, stated, “The PCE index could be a huge catalyst, leading the market to fluctuate significantly in either direction. So far, the PCE is the most important thing to watch.”

U.S. Stocks

Fundamental Analysis:

Popular Chinese concept stocks saw widespread gains, with the Nasdaq Golden Dragon China Index rising by 2.10%.

Ideal Automobiles surged by over 11%, while NetEase soared over 5%. iQIYI and Weibo both rose by over 4%, while Futu Holdings gained over 3%.

NIO and Full Truck Alliance rose by over 2%, and Xpeng, Alibaba, Bilibili, JD.com, Baidu, Pinduoduo, and Vipshop saw slight increases. Tencent Music saw a slight decline.

Large-cap tech stocks saw mixed movements. Netflix surged over 2% after demanding users change their payment methods through the Apple App Store.

Micron Technology also surged over 2%. Meta and AMD rose by over 1%, while Google and Apple saw nearly 1% increases. Apple reportedly ended its electric car project.

Meanwhile, Advanced Micro Devices dropped by nearly 3%, while United Microelectronics Corporation and Taiwan Semiconductor Manufacturing Company fell by over 2%, and NVIDIA, ASML, and MediaTek saw slight declines.

Technical Analysis: 

(S&P 500 Index, 1-day chart)

Market Trends:

  • Dow Jones Industrial Average fell by 96.82 points, or 0.25%, to close at 38,972.41.
  • Nasdaq Composite rose by 59.05 points, or 0.37%, to close at 16,035.30.
  • S&P 500 Index rose by 8.65 points, or 0.17%, to close at 5,078.18.

Hong Kong Stock Market

Fundamental Analysis:

Hong Kong stocks opened high but closed low on Tuesday.

In the market, technology stocks generally declined, with NetEase bucking the trend with a rise of over 5%, while Meituan fell by over 2% and Tencent by over 1%.

Hong Kong property stocks collectively rallied, with New World Development surging nearly 6%.

Real estate stocks led the decline, with Country Garden falling by over 12%. Management stocks followed suit.

Automobile stocks generally fell, with Xpeng down nearly 3%, but Ideal continued its upward trend with a rise of nearly 4%.

Hong Kong’s economic growth accelerated in the fourth quarter, driving local consumption stocks higher.

Technical Analysis: 

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) fell by 0.27% to close at 16,745.96.
  • Hang Seng Tech Index (HSTECH) fell by 0.04% to close at 3,501.62.
  • Hang Seng China Enterprises Index (HSCEI.) fell by 0.76% to close at 5,762.83.

FTSE China A50 Index

Fundamental Analysis:

The three major A-share indices opened high on Tuesday. In the first half-hour of trading, the market fluctuated upward, with the Shenzhen Component Index rising by over 1% and the Growth Enterprise Index rising by nearly 2%.

However, the indices turned green during trading. Of note, market trading volumes were significantly higher in the morning.

In terms of industry sectors, energy metals, education, securities, photovoltaic equipment, and diversified finance performed well, while electrical machinery, consumer electronics, semiconductors, auto parts, and instruments fell.

Themes such as artificial meat, brokerage firms, weight-loss drugs, and lithium extraction from salt lakes were relatively active.

Technical Analysis:  

(SSE Composite Index, 1-day chart)

Market Trends:

  • Shanghai Composite Index (SHCOMP) fell by 0.67% to close at 2,995.4.
  • Shenzhen Component Index (SZCOMP) fell by 0.55% to close at 9,218.48.
  • ChiNext Index (CHINEXT) fell by 0.3% to close at 1,788.64.
  • SSE STAR Market 50 Index (SSE50) fell by 1% to close at 788.95.

Forward-looking Statements   
This article contains “forward-looking statements” and may be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “hope”, “intend”, “may”, “might”, “plan”, “potential”, “predict”, “should”, or “will”, or other variations thereon or comparable terminology. However, the absence of such terminology does not mean that a statement is not forward-looking. In particular, statements about the expectations, beliefs, plans, objectives, assumptions, future events, or future performance of Doo Prime will be generally assumed as forward-looking statements.    

Doo Prime has provided these forward-looking statements based on all current information available to Doo Prime and Doo Prime’s current expectations, assumptions, estimates, and projections. While Doo Prime believes these expectations, assumptions, estimations, and projections are reasonable, these forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond Doo Prime’s control. Such risks and uncertainties may cause results, performance, or achievements materially different from those expressed or implied by the forward-looking statements.    

Doo Prime does not provide any representation or warranty on the reliability, accuracy, or completeness of such statements. Doo Prime is not obliged to provide or release any updates or revisions to any forward-looking statements.   

Risk Disclosure
Trading in financial instruments involves high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding the investor’s initial investment could incur within a short period of time. The past performance of a financial instrument is not an indication of its future performance. Investments in certain services should be made on margin or leverage, where relatively small movements in trading prices may have a disproportionately large impact on the client’s investment and the client should therefore be prepared to suffer significant losses when using such trading facilities.

Please ensure you read and fully understand the trading risks of the respective financial instrument before engaging in any transaction with Doo Prime’s trading platforms. You should seek independent professional advice if you do not understand any of the risks disclosed by us herein or any risk associated with the trade and investment of financial instruments. Please refer to Doo Prime’s Client Agreement and Risk Disclosure Statement to learn more.

Disclaimer 
While every effort has been made to ensure the accuracy of the information in this document, DOO Prime does not warrant or guarantee the accuracy, completeness or reliability of this information. DOO Prime does not accept responsibility for any losses or damages arising directly or indirectly, from the use of this document. The material contained in this document is provided solely for general information and educational purposes and is not and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, securities, futures, options, bonds or any other relevant financial instruments or investments. Nothing in this document should be taken as making any recommendations or providing any investment or other advice with respect to the purchase, sale or other disposition of financial instruments, any related products or any other products, securities or investments. Trading involves risk and you are advised to exercise caution in relation to the report. Before making any investment decision, prospective investors should seek advice from their own financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.

Share the Post:

Related Posts