Tesla and virtual currency-related stocks fall sharply, concerns about recession rise | 21st Financial Tankan

1 year ago 76

4/21 (Friday) morning market trends (compared to the previous day)

traditional finance

NY Dow: $33,786 -0.3%
Nasdaq: $12,059 -0.8%
Nikkei Stock Average: ¥28,657 +0.1%
USD/JPY: 134.2 +0.00%
US dollar index: 101.8 -0.1%
10 year US Treasury yield: 3.53 -1.8% annual yield
Gold Futures: $2,016.6 +0.4%

crypto assets

Bitcoin: $28,191 -2.9%
Ethereum: $1,940 -1.1%

Today’s NY Dow continues to drop to -110. The Nasdaq closed at -$97.6. Concerns about an economic recession seem to have spread due to bad news such as the announcement of Tesla’s financial results on the previous day and the number of new unemployment insurance applications.

connection: U.S. stocks remain flat, risk-off movement due to high inflation in the U.K.

U.S. initial unemployment claims

U.S. initial unemployment claims totaled 245,000 in the week ending April 15, up 5,000 from the previous week. Exceeded expectations of 240,000 cases. In addition, the number of continuing unemployment insurance recipients in the week ending April 8 increased by 1,865,000, exceeding the forecast of 1,825,000. It’s the highest level since November 2021.

According to Bloomberg, the four-week moving average of continuing beneficiaries has been increasing every week since October last year. A continued softening of the labor market was suggested.

U.S. Used Home Sales Data

In addition, the National Association of Realtors announced on the 20th that the number of existing home sales in March decreased by 2.4% month-on-month to 4.44 million units, lower than the market forecast of 4.50 million units and the previous month’s 4.55 million units.

The temporary rise in mortgage interest rates is likely to have discouraged prospective purchasers, and although there are some signs of stabilization in the housing market, there are concerns that the pace of recovery is still unstable. there is

remarks by dignitaries

Cleveland Federal Reserve Bank President Loretta Mester said on Thursday that he would support one more interest rate hike to curb inflation. He said the policy rate should remain above 5% for some time, adding: “The extent to which further tightening is necessary will depend on economic and financial developments and progress on the Fed’s monetary policy objectives. It will depend,” he said.

Bostic, president of the Federal Reserve Bank of Atlanta, also showed support for raising the policy rate one more time (0.25 points) on the 18th of this week.

In terms of recession risk, St. Louis Fed Presidents Bullard and Bostic also said they would avoid recession risk, but the New York Fed’s model of recession probability is rising toward 60%. Stocks bottom out nine months after the start of a recession, on average, according to data compiled by Bloomberg.

Economic data from this week onwards

April 21, 22:45 (Friday): US April Composite Purchasing Managers Index (PMI, preliminary figures)
April 27, 21:30 (Thursday): U.S. January-March Quarterly Real Gross Domestic Product (GDP, preliminary figures), Core PCE
April 28, 21:30 (Friday): U.S. March Personal Consumption Expenditure/PCE deflator
May 1, 23:00 (Monday): US April ISM Manufacturing Index
May 4, 3:00 (Thursday): US Federal Open Market Committee (FOMC) policy interest rate announcement

US stocks

About 16% of the S&P 500 companies have reported earnings so far, but the results have been mixed. Tesla’s profit decline report on the previous day has caused the stock price to drop about -10%, which has dragged down the IT and high-tech stocks.

* Yesterday’s financial results

Source: CoinPost

U.S. IT/tech stocks compared to the previous day: NVIDIA -2.9%, c3.ai -8.8%, Tesla -9.7%, Microsoft -0.8%, Alphabet +1%, Amazon -0.4%, Apple -0.5%, Meta -1.2%.

Microsoft and Alphabet are scheduled to report earnings on April 25, and Apple on May 4.