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U.S. Stocks Closed Mixed, Wells Fargo Beats Expectations, Surges Over 3% 


U.S. stocks closed with mixed results on Friday. The S&P 500 index recorded its second consecutive weekly gain.  

Traders were closely monitoring the earnings reports of major banks and the situation in the Middle East.

A Fed official suggested that the Federal Reserve could keep interest rates “on hold.” 

On Friday, the yield on the US 10-year Treasury note dropped by 9 basis points to 4.621%. Bond prices move inversely to yields.  

Commenting on the drop in U.S. bond yields, Christophe Barraud, Chief Economist and Strategist at Market Securities LLP, stated, “Bonds rebounded ahead of the weekend, as traders may seek to hedge geopolitical risks.” 

Michael Hartnett, a Bank of America strategist, noted that as long as the 10-year bond yield stays below 5%, the U.S. stock market can remain positive, with the S&P 500 index potentially staying above 4,200 points in the short term. 

U.S. Stocks 

Fundamental Analysis: 

Microsoft successfully completed its $69 billion acquisition of Activision Blizzard after nearly two years of regulatory challenges. 

JPMorgan Chase reported a record-high net interest income for the third quarter and raised its full-year outlook. The company’s adjusted revenue for the third quarter was $40.69 billion, exceeding analysts’ expectations of $39.63 billion. Diluted earnings per share were $4.33, surpassing analysts’ expectations of $3.96. 

Wells Fargo exceeded expectations for its third-quarter performance. The company reported third-quarter revenue of $20.86 billion, beating market estimates of $20.16 billion, and earnings per share of $1.48, surpassing the market estimate of $1.25. 

UnitedHealth Group reported third-quarter revenue of $92.4 billion, surpassing expectations. 

Technical Analysis:   

(S&P 500 Index, 1-day chart) 

Market Trends: 

  •  
  • Dow Jones Industrial Average rose by 39.15 points, a 0.12% increase, closing at 33,670.29 points. 
  • Nasdaq Composite Index (Nasdaq) fell by 166.98 points, a 1.23% decrease, closing at 13,407.23 points. 
  • S&P 500 Index dropped by 21.83 points, a 0.50% decrease, closing at 4,327.78 points. 

Hong Kong Stocks 

In Hong Kong, the three main stock indices opened lower and remained in negative territory.  

Core technology stocks mostly declined, with Bilibili and Baidu Group falling by over 2%, and Tencent Holdings and Kuaishou dropping by over 1%. 

Real estate stocks also saw declines, with Longfor Group leading the way with a decrease of over 6%.  

Automobile stocks were down across the board, with XPeng Motors falling by over 3%. Internet healthcare stocks faced losses, with JD Health declining by over 4%.  

In contrast, oil stocks rose, with CNOOC gaining nearly 1%. 

Gold stocks led the gains, with China Gold International rising over 2%. 

Geopolitical tensions, particularly the escalation of the Israeli-Palestinian conflict, increased market risk aversion.  

As a result, international oil and precious metal prices surged significantly, with international gold futures surging by 3%, marking the largest single-day increase this year. 

Technical Analysis:   

(Hang Seng Index, 1-day chart) 

Market Trends: 

  • Hang Seng Index (HSI) declined by 0.43%, closing at 17,737.68 points. 
  • Hang Seng Tech Index (HSTECH) fell by 1.06%, closing at 3,838.90 points. 
  • Hang Seng China Enterprises Index (HSCEI) dropped by 0.49%, closing at 6,086.09 points. 

FTSE China A50 Index 

Fundamental Analysis: 

A-shares experienced mixed results as the three major indices opened with both gains and losses but later moved lower.  

The Shenzhen Component Index and the ChiNext Index both dropped by over 1%.  

The total trading volume for the Shanghai and Shenzhen stock markets was CNY 5,252.41 billion, with a net outflow of CNY 44.15 billion from northbound funds.  

Out of 52 stocks, 47 hit their daily limit up, while 5 hit their daily limit down. 

In terms of industry sectors, sectors like mining, precious metals, gas, petroleum, and building materials led the gains, while energy metals, semiconductors, batteries, electronic components, and power equipment were among the sectors with the most significant losses. 

Technical Analysis: 

(SSE Composite Index, 1-day chart) 

Market Trends: 

  • Shanghai Composite Index (SHCOMP) dropped by 0.4%, closing at 3,075.8 points. 
  • Shenzhen Component Index (SZCOMP) fell by 0.99%, closing at 9,968.99 points. 
  • ChiNext Index (CHINEXT) declined by 1.37%, closing at 1,969.24 points. 
  • SSE STAR Market 50 Index (SSE50) dropped by 1.49%, closing at 878.47 points. 

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.    

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. 

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