US stocks closed slightly lower on Wednesday, hitting a new high

Release time：Apr 25, 2019 From：admin

Sina Wall Street News Beijing time 25 am, US stocks fell slightly on Wednesday, the Nasdaq once refresh intraday high. After the Nasdaq and the S&P 500 hit a new high on Tuesday, the main stock indexes stagnated. Investors are weighing a new round of earnings.

At 16:00 on April 24th (04:00 on April 25th, Beijing time), the Dow fell 59.34 points, or 0.22%, to 26597.05 points; the S&P 500 index fell 6.43 points, or 0.22%, to 2929.25. Point; the Nasdaq fell 18.81 points, or 0.23%, to 8102.01 points.

On Wednesday, the Nasdaq rose to a maximum of 8139.55 points, a record high in the session.

Technology stocks became the mainstay of the rebound in US stocks after the year, and the sector has risen more than 36% from the low of Christmas Eve. Xerox (33.69, -0.50, -1.46%) (Xerox) is the best performing technology company in the sector, with an increase of about 80%.

Christian Fromhertz, CEO of Tribeca Trade Group, said: "It seems that some people are now afraid of missing the upswing. This chasing behavior seems to be the driving force behind the current stock market rally."

He said: "I think that US stocks may start to consolidate at a certain moment. This does not mean that the stock market will inevitably fall sharply. I just think that we need to consolidate in order to absorb and absorb the current gains. This consolidation may occur in a certain After the announcement of the earnings report by some large technology companies."

Facebook (182.58, -1.20, -0.65%) (FB), PayPal, Tesla (258.66, -5.24, -1.99%) (TSLA) and Visa (161.49, -0.17, -0.11%) organizations The earnings report will be released after the close on Wednesday.

Corporate earnings are still the focus of the market. On Wednesday, the Dow's aerospace giant Boeing (375.46, 1.44, 0.39%) (BA) announced its earnings report. Affected by the uncertainties associated with the Boeing 737 MAX aircraft, the company lowered its 2019 performance guidance and suspended the share repurchase program. Another Dow component, Caterpillar (137.73, -4.30, -3.03%) (CAT), announced that its earnings exceeded expectations.

About 130 S&P 500 companies have reported their first-quarter earnings, with 78% of them making more-than-expected earnings.

Some large companies announced strong results on Tuesday, helping the S&P 500 and the Nasdaq to set a new record high.

Prior to Wednesday, the Dow's highest historical closing record was 26,828.39 points created on October 3 last year, with the highest intraday record of 26,951.81 points. The Nasdaq's highest closing record was 8128.82 points created on April 23, with the highest intraday record of 8133.30 points. The highest closing record for the S&P 500 index was 2,931.68 points on April 23, with an intraday record of 2,940.91 points.

Whether the US stocks will face adjustment after the record high, UBS's latest research report believes that investors do not have to worry too much. UBS said that although global stock markets have risen sharply so far this year, many stock markets have not reached historical highs. UBS believes that the current valuation of US stocks is still reasonable. In anticipation of corporate earnings growth, the investment bank raised the S&P 500's six-month target to 2,950.

UBS said that the US stock market started well. About 20% of the S&P 500 market capitalization stocks have announced first-quarter results. Among them, 80% of the companies' earnings are higher than market expectations, and they have not deviated from 0 to 2% of earnings per share growth forecast. In addition, the outlook given by US companies is positive. Most analysts maintain their second-quarter results unchanged, which is a significant improvement from the previous quarter.

In terms of the Fed's policy outlook, analysts pointed out that the recent announcement of strong US economic data may lead to a sharp correction in the market's previous expectations that the Fed's policy tone is too dovish. According to Dailyfx, the US retail sales in March, which was announced on April 18, recorded a 1.6% increase. The retail sales data is optimistic about the initial value of the US first quarter GDP annual rate announced on April 26.

Outside the Fed, the European Central Bank may be further loosened given the weak economic data in the Eurozone. In addition, the Reserve Bank of Australia, the New Zealand Federal Reserve and other central banks have interest rate cuts, and the Bank of Canada also expects doves.

Before the US stock market hit a record high on Tuesday, US stocks experienced a sharp decline at the end of last year, making the S&P 500 the worst performance since 2008. However, US stocks gradually rebounded as the Fed changed its monetary policy path and the improvement of Sino-US trade relations.