[Global Markets] The three major U.S. stock indexes collectively rose more than 1%, the S&P 500, the Nasdaq hit a record high
2021-02-05


1. The three major U.S. stock indexes rose more than 1%, the S&P 500, the Nasdaq hit a record high; Apple (Nasdaq :AAPL) is in talks with at least six automakers about developing an electric car. 3. Fed officials: Retail speculative frenzy won't trigger a policy shift; 4. Goldman Sachs: The bull market in U.S. stocks is still in its early stages.
 
Stock markets around the world
 
Major stock indexes around the world were mixed on Thursday, with the S&P 500 and the Nasdaq Composite Index hitting all-time highs, with the three major indexes gaining more than 1 percent on economic data and Wall Street earnings. Chip stocks, bank stocks generally rose, traditional retail group stocks generally fell, Game Station (NYSE:GME) fell more than 40 percent, AMC CinemaLine (NYSE:AMC) fell more than 20 percent.
 
Many on Wall Street are optimistic about the vaccine rollout, loose monetary policy and more potential fiscal support, predicting that these positive factors will drive strong earnings growth and propel the market to new highs. Goldman sachs believes U.S. stocks a bull market is still in its early stage, chief global equity strategist at Goldman sachs Peter Oppenheimer (Peter Oppenheimer) said in a statement: "we believe that, with the emergence of strong earnings growth, we are still in the early stages of a new bull market, at present is from 'hope' phase transition to a more long-term 'growth' stage."
 
Commodity markets
 
Expectations of a recovery in demand continued to lift oil prices, which rose for a fourth straight day with WTI crude hitting its highest close in more than a year. WTI March crude settled up 54 cents, or 0.97 percent, at $56.23 a barrel. Brent crude for April delivery ended up 38 cents, or 0.65 percent, at $58.84 a barrel.
 
Gold fell more than 2 percent on Thursday, dragged down by rising Treasury yields and a stronger dollar. Gold futures for April delivery, the most actively traded contract on the New York Mercantile Exchange, fell $43.9, or 2.39%, to settle at $1,791.2 an ounce. Silver futures for March delivery fell 65.5 cents, or 2.44 percent, to $26.234 an ounce.
 
Market news
 
[Fed Official: Retail Speculative Blast Won't Lead to Policy Changes]
 
Loretta Mester, president of the Federal Reserve Bank of Cleveland, on Thursday denied that the Fed's policies directly caused the market's problems amid a speculative frenzy by retail investors, saying the central bank had no immediate plans to change policy. But Mr Meister said top regulators should be concerned about the gaming frenzy and its impact on the market.
 
[US initial requests lowest since November]
 
On the heels of Wednesday's better-than-expected small nonfarm data, initial claims came in at 779,000 for the week ended January 30, the lowest level since November and better than economists' expectations of 830,000. Charlie McElligott, derivatives strategist at Nomura Securities, said in a note that Thursday's labor market data showed the economic recovery gaining momentum and equity risk appetite has flared again.
 
Bank of England Predicts Bold Vaccination Program Will Lead to Rapid Economic Recovery
 
Britain's economy is on course for a rapid recovery thanks to aggressive vaccination efforts, the Bank of England said on Thursday. While the Bank of England downgraded its outlook for this year, it expressed optimism about the prospects for a strong rebound in the economy, and the bank's monetary policy committee kept stimulus in place and agreed to prepare for negative interest rates as an emergency measure.
 
China Science and Technology 100 Index
 
The MSCI China Science and Technology 100 Index and the China A-share onshore Science and Technology 100 Index were officially launched on Thursday to meet domestic and foreign investors' demand for investment in China's leading technology and innovative economy companies. The index spans the A-share, Hong Kong and US markets, taking into account the correlation between the market capitalisation of technology companies and individual stocks and technology sub-themes. From the perspective of specific constituent stocks, Meituan, Ali and Tencent ranked the top three in the index, aMeituanBB1 ranked the first with 12.85%.
 
China successfully tests land-based midcourse anti-missile interception technology, ministry says
 
China conducted a ground-based mid-course anti-missile interception technology test on February 4, 2021, and the test achieved its expected goal, according to the Ministry of National Defense on Thursday. The test is defensive in nature and is not targeted at any country.
 
[Sources say Apple is in talks with at least six automakers about electric car development]
 
Apple is in talks with at least six automakers about developing an electric car and is said to be sounding out Japanese automakers and others, the Nikkei reported, citing an unnamed supplier executive.
 
[J&J seeks FDA authorization for emergency use of vaccine]
 
J&J announced Thursday that it has filed an emergency authorization application with the U.S. Food and Drug Administration for its Novel Coronavirus vaccine candidate. J&J expects to supply 100 million doses of the vaccine to the U.S. market in the first half of 2021.
 
[American retail group of small pharmaceutical companies]
 
Eastern time Thursday, the earliest group of retail game station, AMC and other companies plunged again. The influence of retail investors is still there, though the focus has shifted to smaller drug companies. Retail investors on the Reddit forum initially drove a collective rally in shares of biotech companies Anavex Life Sciences, Cassava Sciences and MannKind in early trading, but then diverged, with Anavex Life Sciences Corp. (Nasdaq :AVXL) closing up more than 40 percent, Cassava Sciences Inc (Nasdaq :SAVA) down more than 20 percent and MannKind down more than 1 percent.
 
[Ford to invest $29 billion in electric cars and autonomous driving]
 
After the closing hours Thursday, Ford reported adjusted earnings of 34 cents a share for the fourth quarter, beating expectations for a loss of 7.0 cents. Revenue from the auto division was $33.2 billion in the fourth quarter, slightly below market expectations of $33.89 billion. Ford also announced plans to invest more than $22 billion in electric vehicles and $7 billion in autonomous driving systems by 2025. Ford rose slightly after hours.
 
[Ford forced to cut production of high-margin pickups]
 
As the shortage of core continues to affect the global auto industry, Ford said Thursday Eastern Time that it is slashing production of its high-margin F-150 pickup truck. Starting Monday, Ford will shift from three to one shift at its truck plant in Dearborn, Mich., and from three to two truck production shifts at its Kansas City, Mo., assembly plant. But Kelli Felker, a Ford spokeswoman, said both plants were expected to return to three shifts during the week of Feb. 15.
 
[SpaceX: Starlink Internet service hits 10,000 subscribers]
 
Musk's SpaceX disclosed in a filing with the US Federal Communications Commission on Thursday that its Starlink satellite Internet service now has "more than 10,000 users in the US and outside the US". SpaceX launched a public Beta of its Starlink satellite network in October last year. The service costs $99 a month, while customers pay $499 for Starlink equipment, including terminal receivers, tripods and WiFi routers.
 
[UK, EU to probe Nvidia's acquisition of ARM]
 
The United Kingdom and the European Union are set to launch an in-depth investigation into Nvidia's $40 billion acquisition of SoftBank's ARM chip design unit after chip suppliers including Qualcomm Inc (Nasdaq :QCOM) and Intel Corp (INTC) objected to the deal, media sources said, citing people familiar with the matter. SoftBank and Nvidia announced in September that they had reached a definitive agreement for SoftBank to sell ARM to Nvidia in a deal valued at $40 billion.