Four Major US Indexes Close Lower
US stocks closed broadly lower on Thursday, the Dow Jones Industrial Average fell 132.54 points to close at 52,342.56, down 0.25%; the S&P 500 Index fell 23.59 points to close at 7,720.39, down 0.30%, ending three straight sessions of gains. The Nasdaq fell 365.13 points to close at 26,184.72, down 1.38%; the Philadelphia Semiconductor Index fell 165.8 points to close at 11,518.20, down 1.42%. Taiwan stocks had already fallen 667.25 points yesterday to close at 46,368.33, down 1.42%, with turnover of NT$789.15 billion, today's open is likely to remain under pressure, with the 46,000 level becoming the focus.
Alphabet Plunges on Earnings Miss
Google parent Alphabet reported third-quarter adjusted earnings per share and revenue both below market expectations, with shares plunging 12.64%. Core search business revenue was US$63.35 billion, below the estimated US$64.96 billion; total revenue was US$127.58 billion, below the expected US$128.22 billion, and free cash flow turned to negative US$9.07 billion. The company's full-year capital expenditure is estimated at US$195 billion to US$205 billion, raising market concerns about returns on AI investment. Chipmaker Marvell is reportedly in talks to acquire optical equipment maker Lumentum, possibly announced as early as next week, but its shares still plunged over 13%, showing the market has turned cautious on expansion spending.
TAIFEX Night Session Tumbles, Institutional Investors Bearish
TAIFEX night session fell 643 points, TSMC futures fell NT$30 after hours, signaling pressure on heavyweights today. Judging from yesterday's筹码, the three major institutional investors sold a net NT$83.27 billion combined, including NT$68.82 billion by foreign investors and NT$21.5 billion by dealers, with only investment trusts buying NT$7.04 billion and government funds buying NT$2.785 billion. Foreign investors' net short positions in futures reached 89,522 contracts, up 4,605 contracts in a single day. Margin financing increased NT$1.611 billion yesterday, while retail investors' net long futures positions reached 12,913 contracts, up 4,338 contracts in a single day, contrasting with foreign investors' bearish positioning, and margin buying pressure could rise if the market falls.
Rising Inflation and Divergent Sector Performance
The US economy grew at its fastest pace in a year in the third quarter, but the September personal consumption expenditures price index rose 0.5% month-on-month, the largest increase in six months. The Federal Reserve kept its benchmark interest rate at 3.75% to 4.00%, after a 1-code rate hike in September. White House National Economic Council Director Hassett said Thursday that if October inflation data comes in significantly high, it would be appropriate for the Federal Reserve to act. Among individual stocks, Nvidia fell 0.80%, AMD fell 2.08%, Broadcom fell 1.94%, Micron fell 4.98%, SanDisk plunged 5.32%; Apple rose 1.48%, Meta rose 1.96%, Applied Materials rose 1.36%, Qualcomm rose 1.33%. Wang Chunsheng of Lunyuan Investment Consulting believes short-term indicators to watch are passive components, memory, silicon photonics, robotics, PCB and IC design groups, investors can cut weak holdings and keep strong ones, and buy quality stocks on dips in batches.