U.S. stock close: inflation, supply chain tension cloud of doubts the three major stock indexes closed slightly lower

Financial Associated Press (Shanghai, editor Shi Zhengcheng) news, on the eve of the key inflation data and the opening of the third quarterly report of bank stocks, the US stock market in a strong wait-and-see atmosphere throughout the day trend flat, the closing of the slight decline.

<h3>(S&P 500, NASDAQ, Dow minute chart, source: TradingView).</h3>

Coming out on Wednesday are the SEPTEMBer U.S. CPI, the minutes of the Fed's FOMC meeting and a series of earnings data that will simultaneously answer questions about inflation, supply chain tensions and the response to monetary policy. What worries the market is that on Tuesday, Apple, which was rumored to have a strong control over the supply chain in the after-hours market, also suffered from tight chip supply and was forced to adjust its production plan.

In the inflation expectations survey released by the New York Fed on Tuesday, U.S. consumers' expectations for short- and medium-term inflation continued to edge higher, further posting the highest value since the survey was launched in 2013. Signs have further deepened fears that inflation is "higher than expected and more durable."

Alicia Levine, head of securities and capital markets consultancy at Mellon Bank of New York, said the earnings season will clearly provide guidance to the market for these supply chain issues. At the moment, we are most worried about the industrial and retail sectors, which are difficult for companies to easily pass on cost pressures.

Market dynamics

By the close, the S&P 500 was down 0.24 percent at 4,350.65 points; the Nasdaq was down 0.14 percent at 14,465.92 points; and the Dow Jones was down 0.34 percent at 34,378.34.

From the perspective of industry concepts, uranium, hydrogen energy, solid-state batteries, charging piles, and photovoltaic concepts rose significantly, while online education, oil and gas drilling, and semiconductor sectors fell ahead.

Hot stock performance

Usa's tech leaders continue to weaken today, with Apple down 0.91%, Tesla up 1.74%, Amazon up 0.03%, Google down 1.54%, Facebook down 0.52%, Microsoft down 0.46%, Qualcomm down 1.59%, AMD up 0.34%, and Netflix down 0.33%.

The concept of economic restart mostly strengthened before the earnings season, with JPMorgan Chase down 0.77%, Morgan Stanley up 0.50%, ExxonMobil down 0.52%, American Airlines up 0.79%, United Airlines up 1%, Delta Air Lines up 0.81%, Royal Caribbean Cruises up 1.55%, Norwegian Cruises up 3.05% and Boeing down 1.27%.

Chinese stocks re-entered a state of adjustment, and star stocks such as Alibaba, Tencent ADR, Baidu, and Pinduoduo fell collectively.

Company news

【Apple October "fried field" conference set for the 18th】

On Tuesday, local time, Apple officially announced that it will hold an online new product launch conference at 10:00 a.m. Pacific time on October 18 (1:00 a.m. Beijing time on the 19th). The world's largest technology giant by market capitalization also set the theme of the conference as "Unleashed". According to market rumors, the products that may appear at this conference are the MacBook Pro and AirPods 3 equipped with an upgraded M1 chip.

[Affected by the lack of cores, it is rumored that Apple will lower the iPhone production target for the year]

After hours on Tuesday, the media quoted people familiar with the matter as saying that because Broadcom and Texas Instruments could not deliver enough parts on time, Apple had notified production partners to lower production targets by nearly 10 million units this year. Previously, the company had expected to produce 90 million new iPhones in the last three months of the year. Affected by the news, Apple fell more than 1% after hours on Tuesday.

【Coinbase plans to launch NFT trading market】

Coinbase announced on Tuesday that it was about to launch an NFT trading market and launched a waitlist for early entrants. In addition to the deal, the company made it clear that it would build a platform that would facilitate "connections between creators, collectors and fans."

[Germany CureVac abandons the first generation of vaccine research and development]

German biotech company CureVac announced on Tuesday that it has decided to abandon the first-generation mRNA vaccine previously developed and will go all out to attack the second-generation vaccine jointly developed with GlaxoSmithKline. European regulations have previously hinted that they will not approve the CureVac vaccine with poor trial data by the second quarter of next year, and the second-generation vaccine is expected to enter the late trial stage by then. CureVac said that even if the development plan is canceled, it will not need to return the 450 million euros of vaccine money paid in advance by the EU. As of Tuesday's U.S. stock close, ProfitVac closed down 4.61%.

【LVMH revenue grew steadily in the third quarter】

On Tuesday, local time, luxury giant LVMH announced its third quarterly report, with revenue reaching 15.51 billion euros, an increase of 20% year-on-year, showing that consumers maintain enthusiasm for high-end fashion consumer goods in the post-epidemic era. The revenue data of the third quarter reported showed an 11% increase compared with the same period in 2019, and the growth rate was the same as that in the first half of the year. As of Tuesday's close, LVMH was up 1.30 percent in the U.S. stock market.

【S&P's $40 billion merger is expected to be approved by the European Union】

On Tuesday, the EU's antitrust authorities were about to approve S&P's global acquisition of IHS markets, according to media reports. The $44 billion deal, announced last November, aims to build the world's top one-stop financial information services company. Affected by this news, S&P global stock prices turned from falling to rising intraday, closing up 0.51%.

【American Airlines expects better-than-expected losses in the third quarter】

American Airlines said Tuesday that the company expected a net loss of between $620 million and $675 million in the third quarter, better than the market expectation of $741 million. The company also estimates that overall revenue is down 25% from 2019, also falling in the expected range of 24% to 28% of the market. The company's stock price rose 0.79% on Tuesday amid American Airlines' pledge to plan for a "busy fourth-quarter travel spike."