Under the influence of meta earnings report "thunderstorm" and the acceleration of monetary policy tightening by major central banks around the world, the three major U.S. stock indexes collectively opened low on Thursday, of which the NASDAQ fell nearly 4%, and Meta also set a new record for a single-day market value evaporation of more than $230 billion.
Matt Maley, chief market strategist at Miller Tabak+, said the market suffered a series of blows today, and the ECB's policy stance also began to shift at the same time as The Meta plunge also began. Over the past four trading days, the U.S. stock market has seen an afternoon rally, so investors had expected a rebound in the afternoon. When this expectation falls short, traders also lose a lot of confidence.
It is worth mentioning that Amazon's unexpected earnings report after hours on Thursday triggered a sharp rise in stock prices, which is expected to drive market sentiment back up. In addition, the US January non-farm payrolls report is about to be released before the market on Friday, and after the unexpected negative ADP data on Wednesday, the market is currently worried about a similar situation in the non-farm.
Market dynamics
As of the close, the S&P 500 was down 2.44 percent at 4477.44 points; the Nasdaq was down 3.74 percent at 13,878.82 points; and the Dow was down 1.45 percent at 35,111.16 points.
From the perspective of industry concepts, coking coal, aluminum and other sectors rose in the front, and concepts such as social media and home economy fell in the front.
Hot stock performance
U.S. technology stocks generally fell hard, including Apple down 1.67%, Tesla down 1.60%, Amazon down 7.81%, Google A down 3.32%, Netflix down 5.56%, Microsoft down 3.90%, Qualcomm down 4.84%, AMD down 2.18%, Nvidia down 5.13%.
The concept of economic restart also fell across the board, with Goldman Sachs down 1.15%, Chevron down 0.89%, ExxonMobil down 1.17%, American Airlines down 2.30%, United 2.36%, Delta Air Lines down 1.95 percent, Royal Caribbean Cruises down 2.31 percent, Norwegian Cruises down 3.85 percent, and Boeing down 0.54 percent.
Chinese stocks were also not spared on Thursday, with well-known Internet companies such as JD.com, NetEase, Futu Holdings and Baidu all falling nearly 2 percent, in addition to Ali's slight gains.
Company news
【Amazon net sales of $137.4 billion in the fourth quarter, operating profit of $3.5 billion】
Amazon reported four quarterly results after hours on Thursday, with net sales of $137.4 billion and analysts expecting $137.82 billion; fourth-quarter operating profit of $3.5 billion, an estimated $2.43 billion; earnings per share of $27.75, an estimated $3.77; net sales expected in the first quarter of $112 billion to $117 billion; and expected first-quarter operating profit of $3 billion to $6 billion, an estimated $6.06 billion. Prime members will increase the price to $139/year, up from $119/year. As of press time, Amazon's stock price rose 17% after hours.
【Serabu fourth quarter revenue of $1.3 billion Analysts expect $1.2 billion】
Social media company Snap disclosed four quarterly reports after hours on Thursday, including a fourth-quarter adjusted EBITDA of $326.8 million and analysts' expectations of $179.4 million; a fourth-quarter daily active user of 319 million and analysts expected 316 million; and an adjusted EPS of $0.22 and analysts expected $0.11, the first time in the company's history to achieve positive earnings. As of press time, Serabu was up 53 percent after hours, and the company's shares were down 23 percent on Thursday, dragged down by Meta.
[U.S. Senate Judiciary Committee Passes Open App Market Act]
On Thursday, local time, the US Senate Judiciary Committee passed the Open Application Market Act with a result of 20-2, which will be submitted to the whole house for voting. The bill would require Apple and Google to allow app developers to use other payment systems on iOS and Android, and allow consumers to install third-party app stores. Both companies objected, stressing that excessive openness could jeopardize consumers' privacy and information security.
[Merck expects nearly 20% revenue growth in 2022 to be mainly driven by NEW CROWN oral drugs]
On Thursday, local time, the US pharmaceutical company Merck released its fourth-quarter financial report, with revenue of $13.52 billion and net profit of $4.5 billion exceeding market expectations. Merck also said that it expects revenue guidance for 2022 to be $56.1 billion to $57.6 billion, an increase of nearly 20% from $48.7 billion last year, of which the annual revenue of the new crown oral drug monapiravir is about $5 billion to $6 billion, and the drug achieved revenue of $952 million in the fourth quarter of last year.
[Supply chain tension superimposed mask demand declines Honeywell earnings report is less than expected]
U.S. manufacturing giant Honeywell disclosed Thursday that the company achieved revenue of $8.66 billion in the fourth quarter of last year, a slight decline from the same period last year. Revenue in the Safety and Productivity Solutions division, which produces masks, fell 10 percent, while the aviation division also experienced a decline in performance due to rising raw material prices and tight supply chains. Honeywell's 2022 revenue guidance is $35.4 billion to $36.4 billion, down from analysts' expectations of $36.76 billion. As of Thursday's close, Honeywell was down 7 percent.
【Eli Lilly postpones Alzheimer's new drug approval schedule】
Eli Lilly Pharmaceuticals announced on Thursday that it will complete the schedule for the rapid approval of Alzheimer's new drug donanemab from the first quarter of this year to "within 2022". The company explained that in the case of limited coverage of related new drugs by Medicare in the United States, the difference between whether it can be approved or not is not much. Previously, the U.S. Medical Care and Medical Assistance Service has tightened the coverage policy for Alzheimer's drugs, in which Medicare only reimburses Aduhelm, a new Bojian drug used in approved clinical trials.
【Apple mobile phone India market shipments increased by 34% year-on-year】
According to market research firm Counterpoint, Apple's mobile phone shipments in India reached 2.3 million units in the fourth quarter of last year, a 34% year-on-year surge, marking the opening of the consumer electronics giant in India. It is reported that Xiaomi (9.3 million units) and Samsung (7.2 million units) are still the brands with the largest shipments in the Indian market.
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