BEIJING, March 31 (Xinhua) — U.S. stocks closed higher on Monday, with all three major indexes rising more than 3 percent and the technology sector up more than 4 percent. By the close, the Dow was up 690.7 points, or 3.19 per cent, at 22,327.48, the S.P. 500 was up 85.18 points, or 3.35 per cent, at 2,626.65 and the Nasdaq was up 271.77 points, or 3.62 per cent, at 7,774.15.
Figures: Nasdaq up more than 3.6 per cent
Major U.S. tech giants rose across the board, with Facebook up 5.84 percent, Amazon up 3.36 percent, Apple up 2.85 percent, NetFlix up 3.88 percent, Alphabet up 3.25 percent and Microsoft up 7.03 percent.
China’s major technology stocks rose mostly, with NetEase up 1.85 per cent, Aichi Yi up 0.43 per cent, Ping Duo up 0.88 per cent, Weibo down 2.0 per cent, Tencent Music up 2.22 per cent, Alibaba up 1.42 per cent, JD.com up 0.6 per cent, Baidu up 1.35 per cent and E!news 5.71 per cent.
Share price of China General Stock
Most of the other chinese stocks fell, including Group Car (up 14.29%), Zhengbao Education (up 9.32%), Cheetah Mobile (up 6.44%), Vicente (up 6.02%), LeU (up 4.54%), Medi-Long Street (up 3.92%), Beep Mile (up 3.84%), Micro-credit network (up 3.01%), Dane Technology (up 2.73%), 360 Financial (up 2.6%), Tiger Tooth (up 2.49%), Sohu (up 1.97%), SMIC (up 1.44%), Jane Pu Technology (up 1.24%), Zhongtong (up 1.06%), Auto House (up 0.87%), Sogou (up 0.61%), NetEase (up 0.38%), Thunderbolt (up 0.31%), Touch (up 0.29%), Maverick Electric (up 0.29%), Swim (up 0.19%), and worry-free (up 0.08%).
Companies that were flat on the previous trading day included: Little Win Technology and Temple Library.
Companies that fell included Luckin Coffee (down 0.12%), Baxter (down 0.58%), Titanium (down 0.6%), 500 Lottery .COM (down 0.68%), Tuan (down 0.97%), 58 (down 1.08%), Sina (down 1.58%), Century Connect (down 1.89%), Century Connect (down 1.89%), 500 Lottery Network (down 0.68%), Baozun E-commerce (down 1.96%), Yunmi (down 1.98%), Futo u-hold (down 2.01%), Jumeimeiline (down 2.08%), Financial (down 2.19%), Phoenix New Media (down 2.4%), Good Future (down 2.69%), 1 Pharmaceutical Network (down 3.13%), UT Starcom (down 3.23%) %) New Oriental (down 3.28%), Reunion Group (down 3.52%), Huami (down 4.04%), Ctrip (down 4.05%), Suchhan Holdings (down 4.05%), Easy Car Network (down 4.43%), Stranger (down 4.57%), NIO (down 4.58%), Tiger Securities (down 4.66%) ), Yunyun (down 4.7%), Lanting (down 4.81%), Jianan Technology (down 4.92%), Worry Free English (down 5.03%), Fighting Fish (down 5.6%), Xinalso Technology (down 5.7%), SouFun (down 6.67%), Renren (down 7.1%), Fluent (down 7.69%), Fun (down 7.92%), Xinfu (down 8.33%), Youxin (down 8.77%), Pleasant (down 9.42%) and LeXin (down 14.73%).
Figure: The current product will be underestimated, is a good time to buy
The price-to-earnings ratio of 15.19, below the median for the past five years, suggests that this is a good time to buy the stock. At present, the price-to-earnings ratio of the components of the S.P. 500 is 16.39 times. The average price-to-earnings ratio for the e-commerce sector is 41.41 times, suggesting that the goods will be relatively undervalued compared to their peers; the current market able-off is about 0.72 times, well below its peak and well below the average of 2.84 times for the s. . . 500-stock index. The market able to sell at a fairly low level indicates that the value of the current product will be underestimated at a certain level compared with the normal level in the past. No analysts have raised their first-quarter profit forecasts for the past 60 days, one analyst has lowered their forecasts for full-year profits, while one analyst has lowered its full-year profit forecast, but three have raised their forecasts. Analysts lowered their profit forecasts for Vicente by 70 per cent, but increased their full-year profit forecasts by 0.8 per cent. Zacks has a “buy” rating for the Stock Fair.
With mobile apps, ubiquitous stores and big discounts, Luckin Coffee has outnumbered Starbucks in China in about two years. Luckin Coffee showed off its ambitions this week. In addition to traditional products, Luckin Coffee has launched a number of “de-treachebic” products, including large brands such as Apple’s electronics. Other digital products that users can order at Luckin Coffee include wireless keyboards, mice, Bluetooth devices, calculators, cables, charging treasures, Beats, electric toothbrushes, disinfectants, and more. Like its coffee strategy, Luckin Is selling these products at prices significantly lower than that of well-known Chinese e-commerce companies. A Luckin coffee spokesman did not disclose how long the low-price strategy would last, but it was the main reason for its continued losses, causing concern among investors. Matthew Brennan, managing director of China Channel, says that while buying coffee, people buy other products at random, such as the sudden thought that a friend is going to have a birthday and forget to buy a gift. Brennan agrees with other analysts that cheap coffee can bring a large number of customers, and a certain percentage of customers will be tempted to consider buying higher-margin high-end products.
U.S./Foreign Technology Stocks
Other foreign technology stocks rose mostly, including Ericsson (up 7.16%), GoPro (up 6.45%), Intel (up 5.96%), Hewlett-Packard (up 5.81%), Nvidia (up 5.09%), IBM (up 4.54%), NXP (up 4.46%), Box (up 4.32%), VMware (up 4.13%), Adobe (up 4.11%), Broadcom (up 4.08%), Cisco (up 3.8%), PayPal (up 3.8%), Qualcomm (up 3.66%), eBay (up 3.35%), Pinterest (up 3.21%), Western Digital (up 2.98%), Fibit (up 2.94%), AMD (up 2.75%), Dell Technologies (up 2.71%), Momentum Blizzard (up 2.65%), Salesforce (up 2.64%) BlackBerry (up 2.62%), Yidian (up 2.43%), Zynga (up 2.39%), Micron (up 2.39%), SAP (up 2.38%), Uber (up 2.02%), Sony (up 1.43%), Nokia (up 1.33%), Twitter (up 1.19 percent), Oracle (up 1.06 percent) and Symantec (up 0.9 percent).
Falling companies include Spotify (down 0.91%), Motorola Systems (down 1.26%), Slack (down 1.29%), Lending Club (down 2.26%), Tesla (down 2.38%), Lyft (down 2.46%) and Snap (down 2.71%) iRobot (down 5.08%), Yelp (down 5.95%), SpeedGold (down 8.63%) and Groupon (down 25.16%).
Chart: Tesla shares down 2.38 per cent on concerns about Q1, Q2 deliveries
Tesla shares fell $12.23, or 2.38 percent, to $502.13 today. Concerns about the outbreak and the impact on first-quarter car deliveries are a cause. Adam Jonas, an analyst at Morgan Stanley, worries that expectations for Tesla’s sales are too high. “Typically, the last two weeks of a quarter account for a very high percentage of Tesla’s deliveries,” Jonas said in an investment report Monday. “Tesla had more difficulty in the first quarter as the outbreak accelerated in recent weeks in The U.S. and Europe. Jonas expects Tesla to deliver 88,000 vehicles in the first quarter, below Wall Street’s expected average of 97,000, and 120,000 in the fourth quarter of last year. The gap between Jonas and Wall Street expectations is large, but as the outbreak gets worse, Wall Street’s expectations are modest, after all, they were made before the outbreak. Many investors expect Tesla to deliver just over 80,000 vehicles in the first quarter. Pierre Ferragu, an analyst at New Street Research, expects Tesla to deliver 80,000 vehicles in the first quarter and 72,000 in the second quarter. He rated Tesla’s stock as “buy” and set a target price of $800, saying Tesla’s long-term prospects remain bright. Jonas rated Tesla’s stock as “hold” and set its target price at $440. Wedbush cut Tesla’s first-quarter delivery forecast to 82,000 from 105,000. If the outbreak continues into May, second-quarter deliveries will decline month-on-month. Tesla’s share price is down about 50 percent from its 52-week high in February, but is up about 20 percent so far this year.
Microsoft shares rise more than 7% as multiple factors force
Microsoft shares rose $10.53, or 7.03 percent, to $160.23 on Monday, a two-week high. Microsoft’s share price rose amid reports of a surge in demand for its cloud computing services. Demand for Microsoft’s cloud services has soared 775 percent in areas where social distance is being asked. Traffic on Microsoft’s Teams platform has also soared, with 44 million daily active users. Microsoft isn’t the only company with a surge in demand for products, as are many companies such as Zoom Video and Slack. The good news, and its strong balance sheet, have made Microsoft’s shares popular with investors. Until last summer, bulls had been able to make money on Microsoft stock. But microsoft’s share price has not broken through the $140 resistance level throughout the summer. In October, Microsoft’s share price finally broke through that resistance and rose all the way to a high of $190. In the most recent decline, Microsoft’s share price has bottomed at $135, about five of the six trading days. The subsequent rally pushed Microsoft’s share price up to $140 and above its 200-day moving average. Bulls need to recognize that Microsoft is regaining the $160 price and 100-day moving average. Microsoft’s share price above $160 would bring the 50-day moving average close to $165, which could rise further to $175. On the other hand, bulls need to see the 200-day moving average as a support ingress. After Microsoft’s share price bottoms and the recent rally, bulls can consider low intake.