Fed Chairman Powell’s replay of the old tune seems to have failed to reassure the market’s worries about the rise in interest rates on US long-term debt. US stock futures fell on Friday (5th), Dow Jones futures fell 0.12%, and S&P 500 futures Down 0.17%, Nasdaq 100 futures fell 0.36%.
1. Bauer’s speech detonated market turmoil
On Thursday (4th) Bauer’s speech did not seem to satisfy investors. The bond market sell-off in the past few weeks has attracted Bauer’s attention. He said that the Fed will not sit idly by, but did not mention any specific measures to detonate the market. , U.S. stocks fell, and U.S. Treasury yields jumped.
After Ball welcomed the rise in the yield of long-term U.S. debt last week, Ball made a different statement in the Wall Street Journal webinar on Thursday. Bauer said: “I worry that the disorderly state of the market or the continued tightening of the financial environment will threaten the Fed to achieve its goals.”
Bauer reiterated that the Fed still has a long way to go before achieving the maximum employment rate and stabilizing inflation at 2%. The current policy stance is appropriate, and if the situation changes substantially, the Fed is prepared to use the tools it has to promote the achievement of its goals.
2. Gap’s revenue this year is expected to increase by nearly 20%
Gap announced on Thursday (4th) that its profit in the fourth quarter of last year was better than expected, and it is estimated that sales will resume growth this year, with a maximum increase of nearly 20%. The main reason is that the sales of its brand Athleta are expected to double in the next two years and the new crown The large-scale delivery of vaccines has helped boost customer traffic in stores.
Gap turned a loss to profit in the quarter ended on January 30, with a net profit of 234 millionU.S. dollar, Excluding some items, the earnings per share is 0.28 U.S. dollar, Which is 0.1 higher than Refinitiv analyst estimates U.S. dollar.Net revenue fell by about 5% to 442 millionU.S. dollar, Which is lower than analysts’ estimate of 4.66 billionU.S. dollar。
Gap estimates that net revenue in 2021 will grow in the high tens of 14% to 19%, and profit per share will range from 1.20 to 1.35 U.S. dollar。
3. Broadcom chip sales are slightly lower than expected
Apple supplier Broadcom (AVGO-US) On Thursday (4th) the US stock market announced its first quarter financial report for fiscal year 2021. The sales of its chip division were slightly lower than Wall Street expectations, and it predicted that radio frequency chips will enter the traditional off-season.
Key financial report data show that Broadcom’s net revenue was reported at 6.66 billion yuanU.S. dollar, An annual increase of 14%, better than the 6.62 billion expected by the Refinitiv surveyU.S. dollarGAnon-GAAP EPS 報 6.61 U.S. dollar, An annual increase of 26%, better than the 6.56 expected by the Refinitiv survey U.S. dollar。
Broadcom CEO Chen Fuyang (Hock Tan) said in a conference call that semiconductor solutions in the second quarter will perform similarly to the performance of the first quarter. However, radio frequency chips will enter the traditional off-season, while cloud data centers and network chips for telecom operators Demand remains strong.
4. GM and LG Chem plan to build a second battery factory in the United States
General Motors (GM-USOn the 4th (Thursday), it was stated that it is considering building a second battery plant for electric vehicles (EV) in the United States. It is currently planning to build a joint venture with South Korea’s LG Chemical (051915-KR) to pave the way for mass production of electric vehicles.
General Motors and LG Chem will each invest half in 2020 to build a car battery plant in Ohio, USA, and it is expected to start production in 2022.
GM plans to launch 30 models of electric vehicles in the global market before the end of 2025, of which about 20 models will be launched in the North American market.
5. The EU will also file an antitrust lawsuit against the Apple App Store
Apple (AAPL-US) The App Store is involved in unfair competition. Following the investigation of the relevant complaints by the UK antitrust authority, Reuters reported that the EU is also reported to be targeting Spotify (SPOT-US) The complaint launched an investigation into Apple, and the competent authority has prepared a list of allegations.
Spotify accuses Apple of imposing unfair restrictions on competitor programs in order to allow users to use Apple Music, and protests that Apple charges 30% commissions to app developers through the in-program purchase (IAP) system. Apple said in March 2019 that its App Store helped Spotify become the largest music streaming service in Europe.
The European Commission is also investigating Apple’s App Store for competitor’s e-books and audiobook apps to establish those specifications, as well as Apple Pay’s payment terms.