Pre-market movements
Zhitong Finance APP learned that on February 25 (Friday) before the US stock market, the three major stock index futures of us stocks fell together. As of press time, Dow futures are down 0.68 percent, S&P 500 futures are down 0.68 percent, and NASDAQ futures are down 0.52 percent.
As of press time, the UK FTSE 100 is up 2.21%, the German DAX is up 1.54%, the French CAC40 is up 1.78%, and the European Stoxx 50 is up 1.72%.
As of press time, WTI crude oil rose 0.08% at $92.88 a barrel. Brent crude fell 0.08 percent at $95.34 a barrel.
Market news
Fed Governor Waller: If the economy overheats, it supports a 50 basis point rate hike in March, leaning towards balance sheet reduction in July or before. Fed Governor Christopher Waller stressed on Thursday local time that it is time to work together to control inflation and called for interest rates to be raised by a full percentage point by mid-year. Waller also said that if data in the coming weeks shows that the economy is overheating, it supports controlling inflation starting with a 50 basis point rate hike in March. The Fed should also begin cutting its $9 trillion balance sheet at its July meeting.
The situation in Russia and Ukraine has aggravated the "core shortage"? Chip manufacturers speak out in unison: diversified supply chains will ensure normal supply. At a time when the chip industry is in a "lack of cores" due to an unprecedented surge in demand due to the covid-19 pandemic and demand, some leaders in the chip industry have collectively spoken out, sending a reassuring signal that the escalation of the conflict between Russia and Ukraine is unlikely to worsen the chip shortage. The U.S. Semiconductor Industry Association (SIA) said Thursday that Russia is only a small market for the chip industry and that Russia's invasion of Ukraine would not pose a threat to chip supply. The association said sanctions imposed on Russia by the United States and its allies are also unlikely to have a significant impact on sales in the industry.
The conflict between Ukraine and Russia has forced multinational companies to stop work and production, and the shortage of global supply chains may be aggravated. As the Russian armed forces entered Ukraine, cigarette manufacturers to car manufacturers and beverage producers stopped production activities in Ukraine, putting further pressure on an already fragile global supply chain. Japan Tobacco said on Friday it had stopped production operations at a plant in Kremncuk, central Ukraine, which employs 900 people. Bottling company Coca-Cola HBC has also joined Carlsberg, Nestlé and AB InBev (BUD. US) and other companies, closed operations in the country and repatriated employees. Pump and component manufacturer ITT Inc. (ITT. US) CEO Luca Silva said the movement of goods from China to Europe will be affected by the situation in the region.
Wages and prices are growing too fast, and U.S. businesses have limited additional costs to pass on. According to a survey by the Federal Reserve Bank of Kansas City, U.S. companies are passing on only a limited portion of the additional costs to their customers amid rising wages and rising prices for everything from supply to energy and services. According to the survey data, about half of the respondents only passed on 40% or less of the cost growth to customers, and more than a third of them could not even pass on their cost growth of more than 20%. In addition, companies that can pass on more than 80 percent of the cost increase account for less than a third of the total number of respondents.
ECB Chief Economist: The Russian-Ukrainian conflict could reduce EUROZONE GDP by 1%. Philip Lane, chief economist at the European Central Bank, said the conflict in Russia could reduce the eurozone's GDP by 0.3%-0.4% this year. It was the "neutral scenario" that Lane proposed at the ECB's Governing Council meeting on Thursday, hours after the Russian-Ukrainian conflict had escalated across the board. Lane also proposed a serious scenario in which eurozone GDP would fall by nearly 1 percent; Another mild scenario, the Ukraine crisis, has no impact on the eurozone, but this is currently considered impossible. Goldman Sachs also said that the Russian-Ukrainian conflict has caused energy prices to soar, and eurozone inflation may rise to a new high of 6.5% in May.
Individual stock messages
JD. US) increased its holdings in DADA. US) New Developments: The transaction is about to be completed, and omni-channel cooperation is deepened in an all-round way. On February 25, 2022, Beijing time, JD Group and Dada Group respectively announced that JD Group will complete the subscription transaction of common shares issued by Dada Group in the near future. After the completion of the transaction, including its current shares, JD Group will hold about 52% of the shares of Dada Group.
Dell US) fiscal 2022 Q4 net profit narrowed significantly year-on-year, with PC shipments up 9% year-on-year. After U.S. stock market hours on Thursday, Dell announced its fiscal 2022 fourth-quarter financial results. Dell Q4 total net revenue was $27.992 billion in the three months ended Jan. 28, more than analysts generally expected at $27.5 billion, up 16% year-over-year, the data showed. Net income attributable to Dell was $2 million, compared to $1.227 billion in the year-ago quarter; Loss per diluted continuing operations was $0.04, compared to earnings per share of $0.90 in the year-ago quarter.
Progress in increasing production, Rivian (RIVN. US) set the share of electric vehicles in the market to reach 10% in 2030. Rivian Automotive CEO R.J. Scaringe said Thursday that the company's assembly plant in Normal, Illinois, is making progress in ramping up production, with a goal of capturing 10 percent of the electric vehicle market by 2030. Rivian shut down the plant for the first 10 days of January in order to make adjustments to the production line to increase production.
Ideal Automobile (LI.US) net profit in the fourth quarter was 296 million yuan. Ideal Auto announced its results for the fourth quarter ended December 31, 2021, in which the Group achieved vehicle sales revenue of RMB10.376 billion (the same unit below), an increase of 155.7% year-on-year; Total revenue was 10.621 billion yuan, an increase of 156.1% year-on-year; Net profit was 296 million yuan, an increase of 174.9% year-on-year.
Beyond Meat(BYND. US) Q4 U.S. retail sales down 20% year-on-year, performance guidance fell short of expectations. Beyond MeatQ4 net revenue of $100.7 million, down 1.2% year-over-year; Gross profit was $14.2 million, compared to $25.4 million for the year-ago quarter; Net loss of $80.4 million, compared to $25.1 million in the year-ago quarter, or a loss of $1.27 per share, compared to $0.40 for the year-ago quarter; Adjusted EBITDA lost $62.9 million. The company's 2022 revenue guidance was lower than market expectations, showing signs of a gradual slowdown in its growth.
Occidental Petroleum (OXY. US) net sales increased nearly 62% year-over-year in 2021, and net profit of $1.522 billion turned a profit. Occidental Petroleum's fourth-quarter net sales were $8.010 billion, up 139.25% year-over-year; Net income attributable to common shareholders was $1,337 million, compared to a net loss of $1,312 million for the year-ago quarter; Earnings per amortized share were $1.37, compared to a loss of $1.41 per share for the year-ago quarter.
Important economic data forecast
21:30 Beijing time: US January Durable Goods Orders Preliminary Value (%), US January PCE Price Index (%), US January Core PCE Price Index (%) ( %).
22:00 Beijing time: US President Biden held a substantive meeting with NATO heads of state.
At 2:00 a.m. Beijing time the next day: the total number of wells drilled in the United States as of February 25 in the United States (ports), and the total number of oil drills (ports) in the United States for the week ended February 25.
At 4:30 a.m. Beijing time the next day: the US Commodity Futures Trading Commission (CFTC) released its weekly position holding report.
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Saturday night: Berkshire Hathaway (BRK.A.US)