“Treasuries yield calm, growth stocks and large-cap stocks strong”
Soaring on news of Intel CEO replacement
Slight decline in the financial industry due to the calm of interest rates
Photo = Getty Image Bank
The New York Stock Market closed mixed tax. As the soaring trend in government bond yields has subsided.
On the 13th (local time) on the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average closed at 31,060.47, down 8.22 points (0.03%) from the previous day. The Standard & Poor’s (S&P) 500 index rose 8.65 points (0.23%) to 3809.84 over the same period, while the NASDAQ index closed at 13,128.95, up 56.52 points (0.43%).
The market was relieved as the rising interest rate subsided. The 10-year U.S. Treasury bond rate fell below 1.1% on the same day. On the previous day, there was a sharp rise, exceeding 1.18% at one time during the week. The Joe Biden administration’s massive economic stimulus measures, inflation prospects, and the possibility of a reduction in monetary easing by the US central bank (Fed) have influenced the interest rate rise.
US prices were also announced at expected levels. The Ministry of Labor announced that in December, the Consumer Price Index (CPI) rose 0.4% from the previous month. Excluding food and energy with high volatility, the core CPI rose 0.1% MoM in December and 1.6% YoY.
In the Fed, a dove-wave (market-friendly) remark came out. This is to ease concerns about a faster-than-expected exit strategy (tapering). Fed director Rael Brainerd said, “The current rate of bond buying will still be adequate for the time being,” he said. “If the economy demands it, it could speed up the pace of bond buying.”
Seo Sang-young, a researcher at Kiwoom Securities, said, “As the soaring trend in government bond yields subsided, it changed from a strong focus on value stocks and small and mid-cap stocks to a market trend centered on growth stocks and large-cap stocks.” It was diagnosed as a situation that I am not doing.
Intel CEO Robert Swan
Intel closed soaring. Intel closed the deal at $56.95, up $3.71 (6.97%) per share from the previous day. Intel decided to replace the CEO. According to CNBC that day, Intel CEO Bob Swan will resign starting on the 15th of next month. Intel has decided to hire Pat Gelsinger, who is the CEO of cloud computing company VMware, as the new CEO. This is because a sense of crisis arose as rivals Samsung Electronics, Taiwan TSMC, and AMD were losing their share.
Apple also closed up. Apple closed the deal at 130.89, up $2.09 per share (1.62%) from the previous day. The fact that it negotiated with Canoe, an electric vehicle startup in the first half of last year, was a good thing. Canoe is said to have a product jointly developed with Hyundai Motor Company.
Amazon increased by more than 1% by announcing its offering of low-cost streaming services to India, while Netflix rose by nearly 3% when it was highlighted that Disney’s growth in subscribers was not growing significantly. Disney entered the online video service (OTT) market with the content streaming service’Disney Plus’.
On the other hand, financial stocks closed down as interest rate hikes subsided. Bank of America (BoA) closed the deal at $33.46, down $0.2 per share (0.59%) from the previous day. Morgan Stanley also fell $0.24 per share (0.32%) to $75.56 during the same period.
Song-ryul Lee, reporter of Hankyung.com [email protected]