Daily Investment Strategy
Hang Seng Index rose 29 points on Thursday
The Hang Seng Index rose 29 points or 0.1% to 20,396 on Thursday. HSTECH fell 3 points or 0.1% to 4,098 and HSCEI rose 6 points or 0.1% to 6,895. Daily market turnover was HK$101.5bn.
U.S. stocks fall on Thursday amid mixed corporate earnings
Stocks fell on Thursday as the market reacted to mixed corporate earnings reports, including Tesla's disappointing results. Investors also assessed the latest data showing a contraction in the economy. The Nasdaq Composite Index fell 0.8% to close at 12,059.56 points; the Dow Jones Industrial Average fell 110.39 points, or 0.33%, to close at 33,786.62 points; the S&P 500 Index fell 0.6% to close at 4,129.79 points. Shares of electric car maker Tesla fell 10% after the company reported earnings that missed market expectations as a series of recent price cuts weighed on profit margins. Tesla's willingness to sacrifice profit margins in exchange for long-term demand growth has sparked fears of a price war in the industry, sending shares of other automakers including General Motors Co and Ford Motor Co down about 3%. Shares of Seagate Technology fell more than 9% after the company issued a disappointing forecast, citing weak demand. Shares of Dow main component AT&T Inc tumbled more than 10% as investors worried about the company's ability to meet its forecasts, amid mixed quarterly results and lower-than-expected revenue. About 16% of S&P 500 companies have reported results so far, and about 76% of those companies have topped earnings per share estimates, according to FactSet data on Thursday. The market itself is preparing for a decline in earnings. And some investors are starting to be alert seeing the generally weaker earning guidance.
U.S. initial jobless claims rise to 245,000 vs. 240,000 expected
Weekly data from the Labor Department on Thursday showed 245,000 initial jobless claims for the week ended April 15. The reading followed last week's 240,000 (revised from 239,000) and topped expectations for a reading of 240,000. Continuing claims rose by 61,000 in the week ended April 8 to the highest level since November 2021.
Hong Kong Stock Connect had a net inflow of HK$5.14bn on Thursday, of which SMIC (981) had the largest net inflow, reaching HK$0.78bn; followed by Meituan (3690). Tracker Fund (2800) recorded the largest net outflow at HK$2.8bn, followed by HSCEI ETF (2828).
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