Wealth curve

Weak economic data, US stocks fell, the Dow fell more than 1

US stocks closed lower on Thursday and the Dow fell more than 100 points. China and the United States have begun a new round of high-level trade negotiations. Most of the US economic data is weak.
At 16:00 on February 21st (February 22nd, Beijing time at 05:00), the Dow fell 103.81 points, or 0.4%, to 25850.63 points; the S&P 500 index fell 9.82 points, or 0.35% , reported 2774.88 points; the Nasdaq fell 29.36 points, or 0.39%, reported 7459.71 points.
What is the market driving force?
Hugo Rogers, chief investment strategist at Deltec International Group, said: "The deterioration of economic fundamentals will have a negative impact on asset prices in the next few quarters. By then, the Fed may not be able to continue to wait and see, but must take some more intense Measures."
Concerns about the global economic slowdown have shrouded the market. According to survey data released by Europe and Japan on Thursday, the manufacturing sectors of both economies contracted in February. German manufacturers, which are heavily dependent on exports, reported that exports in February had the biggest drop in more than six years.
St. Louis Fed President James Brad also predicted that the US economy will slow down this year compared to last year. He said: "The Fed did too much interest rate in 2017 and 2018. We can do everything about the normalization of monetary policy. The biggest concern is Europe."
Brad said: "Fed It may cut interest rates, but this is not a basic assumption. The basic assumption should be that the Fed should maintain the status quo."
The progress of Sino-US trade negotiations has received attention. According to Xinhua News Agency, the seventh round of China-US high-level economic and trade consultations opened in Washington. On the morning of February 21, local time, President Xi Jinping’s special envoy, member of the Political Bureau of the CPC Central Committee, Vice Premier of the State Council, Chinese leader of the China-US Comprehensive Economic Dialogue, Liu He, and US Trade Representative Wright Heze, and Finance Minister Mnuchin, at the White House Eisenhower The administrative office co-chaired the opening ceremony of the seventh round of the China-US high-level economic and trade consultation. This round of high-level consultations is scheduled to be held in Washington on 21-22, and the two sides have started working-level consultations on the 19th.
At the same time, the issue of tariff friction between the United States and Europe resurfaced. Trump told reporters at the White House that if it is impossible to reach an agreement with the EU, the United States will charge high tariffs on imported cars in Europe, and the levying of automobile tariffs is under the government’sUnder consideration.
Trump said: "We are working hard to reach an agreement. It is very difficult to reach an agreement with the EU. If it is not up to agreement, then we will collect taxes."
According to estimates by the American Automobile Dealers Association, Tariffs will increase the cost of imported cars and trucks by $6,875 per vehicle, and will also increase the cost of locally manufactured cars by $2,270 per vehicle.
Most of the US domestic economic data is weak
US durable goods orders increased by 1.2% in December, lower than the 1.4% economists' average expectations. Excluding aircraft and auto orders, December durable goods orders only increased by 0.1%. In addition, as an important measure of business investment, core durable goods orders fell by 0.7% in December.
The growth rate of durable goods orders in the United States in December was unexpectedly lower than expected. This is the fourth time in five months that similar situations have occurred, indicating that the US economy is weakening due to factors such as the policy of further tightening in the United States. . US non-defense capital durable goods orders fell by 0.7% from the previous month, the agency is expected to grow by 0.2%, and durable goods orders increased less than expected. This data also shows signs of weakness in investment and manufacturing in the US economy at the end of 2018.
The Philadelphia Fed manufacturing data showed that manufacturing activity in Pennsylvania, Delaware and New Jersey in the United States recorded the first contraction since May 2016. The Philadelphia Fed reported that the seasonally adjusted US Philadelphia Fed manufacturing index fell to -4.1 in February, compared with 17 in January.
On Thursday, the US Department of Labor announced that the number of US initial jobless claims for the week ended Feb. 16 was 216,000, the lowest in four weeks. The market is expected to reach 229,000.
The Markit Manufacturing and Services Integrated Purchasing Managers Index (PMI) climbed to 55.8 in February from 54.4 in January. The data shows that US private sector output growth in February exceeded expectations.
The US Conference Board reported that the US leading economic indicators index fell 0.1% in January to 111.3. The index was flat in December.
The National Association of Realtors and Dealers reported that sales of second-hand homes in the United States fell 1.2% in January, and the seasonalized adjusted annualized figure was 4.94 million, the third consecutive month of decline.