Tag:

U.S. stocks early trading

Stocks Surge on Expectations of Fed Rate Cuts, Dow Jones and Nasdaq Hit Record Highs

by Chief editor of world-today-news.com December 21, 2023

written by Chief editor of world-today-news.com

Major U.S. stock indexes opened higher on Thursday (21st) after economic data released earlier solidified investors’ bets on expectations of a rate cut by the Fed. In addition, US memory chip manufacturer Micron boosted its stock price after announcing an optimistic financial forecast a few days ago, opening up more than 7% on Thursday.

before deadline,Dow Jones Industrial Averagerose more than 300 points or nearly 0.8%,Nasdaq Composite Indexrose more than 160 or more than 1%,S&P 500 Indexrose nearly 0.9%,Philadelphia SemiconductorThe index rose more than 2%.

The latest data released by the U.S. Department of Commerce showed that the annual growth rate of gross domestic product (GDP) in the third quarter was revised down to 4.9%, lower than the market consensus of 5.2%. The previously announced revised value was 5.2%.

In addition, the final value of the third-quarter personal expenditures and consumption (PCE) price index, which was announced at the same time as GDP, was also revised down to 3.1%, lower than expected and the previous value of 3.6%, while the final value of the core PCE quarterly growth rate was revised down to 3.1%. 2%, also lower than the previous value and the expected 2.3%, consistent with the Fed’s 2% inflation target.

At the same time, the number of Americans filing initial claims for unemployment benefits grew less than expected last week and remained near historical lows, indicating that the job market remains resilient. According to data from the Labor Department, the number of people claiming unemployment benefits increased by 2,000 to 205,000 in the week ended December 16.

Some market observers blamed the so-called zero-day expiration (ODTE) for Wednesday’s plunge in U.S. stocks, noting that heavy put option volume could cause holders to sell the underlying stocks. But many believe the backdrop of slowing inflation and bets on rate cuts mean such speed bumps will be short-lived.

Citigroup strategists recommend buying on a pullback, adding that investors should expect volatility ahead, but the Fed’s eventual policy changes will be a North Star for guidance.

Philadelphia Fed President Patrick Harker on Wednesday further strengthened his belief in lowering interest rates. He said lowering interest rates was important, but he also warned that the central bank should not move too quickly or “immediately.”

As of 22:00 Taipei time on Thursday (21st): Focus stocks:

apple (AAPL-US) shares rose 1.06% to $196.89 per share in early trading

According to people familiar with the matter, Apple is accelerating the production of the Vision Pro mixed reality (MR) headset in preparation for its market launch in February next year. Apple sent an email to software developers on Wednesday, encouraging them to use the latest tools to test their apps to “get ready” for Vision Pro and send their software to Apple in return. This is another sign that the product is nearing launch.

Micron (MU-US) shares rose 9.00% to $85.77 per share in early trading

American memory chip maker Micron’s stock price surged more than 5% before the market opened on Thursday after the company released its latest financial forecast and stated that the supply and demand balance of memory and flash storage will recover strongly next year. Analysts said Micron’s stock price rebounded faster than expected.

Boeing (BA-US) shares rose 2.49% to $267.15 per share in early trading

According to foreign media reports on Thursday, Boeing will restart deliveries of the 787 Dreamliner to China within a few days, marking the first resumption of deliveries since April 2021. Some analysts believe that this is a sign that tense U.S.-China trade relations may be easing, and may also pave the way for China to end Boeing’s more than four-year freeze on the delivery of the 737 Max.

Today’s key economic data:

The number of people claiming unemployment benefits in the United States last week was 205,000, compared with the expected 214,000, and the previous value of 203,000
The number of Americans continuing to receive unemployment benefits last week reported 1.865 million, 1.888 million expected, and the previous value of 1.866 million
The final annual rate of U.S. GDP growth in the third quarter was 4.9%, which was expected to be 5.2% and the previous value was 5.2%.
The U.S. third-quarter PCE quarterly growth rate finalized at 3.1%, expected to be 3.6%, and the previous value was 3.6%
Philadelphia Fed manufacturing index for December was -10.5, expected -3.0, previous value -5.9

Wall Street analysis:

Stocks are surging on expectations the Fed will turn to interest rate cuts next year, but investment bank Barclays is cautious. Analysts at the bank said that due to the threat of high inflation, this cycle is significantly different from any experienced in the past few decades.

JPMorgan Chase’s chief market strategist said in a report that investors should favor cash over stocks in 2024 because the Fed seems unlikely to cut interest rates quickly.The analyst forecasts 2024S&P 500 IndexA target of 4,200 points means the index could fall 12% from current levels.

2023-12-21 14:41:36
#U.S #Stocks #Early #Trading #markets #expectations #interest #rate #cut #year #remain #unchanged #major #indexes #opened #higher #Microns #stock #price #rose #Anue #JuhengU.S #Stock #Radar

December 21, 2023 0 comments

Business

U.S. Stocks Continue to Rise as Investors Remain Bullish; Nippon Steel Acquires US Steel, Apple Faces Sales Suspension

by Chief editor of world-today-news.com December 18, 2023

written by Chief editor of world-today-news.com

After rising for seven consecutive weeks, U.S. stocks closed in early trading on Monday (18th)Dow Jones Indexup 0.09%,S&P 500 Indexup 0.24%,NasdaqThe index rose 0.05%,half feedown 0.18%.

U.S. stocks continued to rise last week,S&P 500 IndexWrite down the longest consecutive rising weeks since 2017,Dow Jones Index、Nasdaq 100 index hit all-time highs. The S&P has risen 3.3% this month,Dow JonesandNasdaqThe indices rose 3.8% and 4.1% respectively.

As inflation cools, a dot plot released by the Federal Reserve last week showed that officials expect three interest rate cuts in 2024, helping to bring about a positive change in investor sentiment.

Although Fed Chairman Jerome Powell issued a dovish message after the meeting, two officials later stepped in to “put out the fire.” Williams, president of the New York Fed branch, said that talk of a rate cut in March next year is “premature” and “we are not really discussing a rate cut seriously.”

Next year’s FOMC voting committee member and Atlanta Fed branch president Bostic said he would be cautious about cutting interest rates too early. He said he wanted to make sure inflation was fully under control and avoid “surprises” before lowering borrowing costs.

Shipping giants MSC, Hapag-Lloyd, CMA CGM and Maersk have all announced suspensions of Red Sea routes due to drone threats, with BP joining them on Monday. As a result, they are temporarily abandoning access to key routes between Europe and Asia and between the Middle East and North Africa. Analysts said the move could have a major impact on global supply chains.

As of 22:00 Taipei time on Monday:

Dow Jones IndexUp 33.36 points or 0.09%, temporarily reported at 37338.52 points
NasdaqUp 7.19 points or 0.05%, temporarily reported at 14821.11 points
The S&P 500 rose 11.23 points or 0.24%, temporarily reporting at 4730.42 points
half feeDown 7.24 points or 0.18%, temporarily reported at 4109.77 points
TSMC ADR rose 0.20% to $102.75 per share
Ten-year U.S. Treasury yieldLittle change, to 3.91%
New York light crude oil rose 2.37% to $73.12 a barrel
Brent crude oilrose 2.53% to $78.49 per barrel
goldrose 0.3% to $2,025.92 an ounce
dollar indexDown 0.13% to 102.43

Focus stocks:

United States Steel (X-US) rose 26.09% to $49.59

Japan’s Nippon Steel said on Monday it would acquire US Steel (X-US), with a transaction value of US$14.9 billion (including debt). A few months ago, U.S. Steel announced it was for sale.

The offer of US$55 per share represents a premium of approximately 40% to U.S. Steel’s closing price on Friday (15th) and a 142% premium to the closing price before the company announced its strategic review process on August 11.

apple (AAPL-US) fell 1.07% to $195.46

Apple will suspend sales of Apple Watch in the United States in response to the U.S. International Trade Commission (ITC) ruling. The ruling, which relates to Masimo’s patent infringement dispute, will take effect from Christmas.

According to media reports, more government agencies and state-owned enterprises in China are requiring employees not to bring Apple iPhones and other foreign brand mobile phones to the workplace, covering at least eight provinces.

Since September, it has been reported that China has banned officials from bringing iPhones and other foreign-brand mobile phones into government agencies. However, at that time, the scope of the impact was limited to a small number of government agencies in Beijing and Tianjin. Employees were told to leave foreign-brand mobile phones at home and were not allowed to bring them into government agencies. to the workplace.

NIO (NIO-US) rose 5.3% to $8.40

NIO announced on the Hong Kong Stock Exchange after the Hong Kong stock market closed that it had entered into a share subscription agreement with CYVN Holdings through its affiliated company CYVN. CYVN Holdings is a professional investment institution headquartered in Abu Dhabi that focuses on investments in the advanced and intelligent mobility field.

According to the share subscription agreement, CYVN will invest a total of US$2.2 billion in cash to subscribe for 294 million newly issued Class A ordinary shares of the company at a purchase price of US$7.50 per share. After the investment transaction is completed in December, CYVN will beneficially hold approximately 20.1% of the total issued and outstanding shares of NIO. CYVN will also have the right to nominate two directors to NIO’s board of directors.

Key daily economic data:

none

Wall Street analysis:

Max Kettner, chief multi-asset strategy at HSBC, pointed out that from a market perspective, slowing inflation, lower growth expectations and intact growth momentum are a good combination. However, with near-term U.S. growth and profit expectations remaining weak, he believes 2024 should be viewed with more caution.

The Goldman Sachs team led by David Kostin wrote in the latest report that the Fed’s dovish turn last week, coupled with falling consumer prices, will lead to lower real yields and support stock valuations. “Stock markets were already pricing in positive economic activity but now reflect a stronger outlook,” they said.

Kirsten now expectsS&P 500 IndexIt will hit 5,100 by the end of next year, joining Wall Street peers such as Bank of America and Oppenheimer Asset Management in forecasting new highs in 2024.

2023-12-18 14:41:13
#U.S #stocks #early #trading #Fed #officials #cool #major #indexes #small #gains #early #trading #Anue #Juheng #U.S #stocks

December 18, 2023 0 comments

Business

Wall Street Mixed as Fed Officials Dampen Rate Cut Optimism

by Chief editor of world-today-news.com December 15, 2023

written by Chief editor of world-today-news.com

Major U.S. stock indexes were mixed on Friday (15th) after Federal Reserve (Fed) officials said it was still too early to talk about an interest rate cut in March next year, which dampened recent market optimism.

before deadline,Dow Jones Industrial Averagefell nearly 60 points or nearly 0.2%,Nasdaq Composite Indexrose more than 40 points or nearly 0.3%,S&P 500 Indexfell nearly 0.1%,Philadelphia SemiconductorThe index rose more than 0.5%.

Major U.S. index futures were lower before the open on Friday after New York Fed President and Federal Open Market Committee (FOMC) Vice Chairman John Williams cooled optimism about a rate cut next March. Williams told US media CNBC that it is too early to consider a rate cut in March next year.

At the same time, the New York Fed’s December manufacturing index reported -14.50, far lower than the 2 expected by economists and far lower than the previous value of 9.10. The data revealed signs of slowing in U.S. economic activity. The benchmark 10-year U.S. Treasury note yield fell below 4% for the first time since August last year, and U.S. Treasury bond prices have remained steady since then.

The Fed sparked a speculative frenzy this week by confirming speculation that it was ready to declare victory over inflation and move toward cutting interest rates without inflicting major damage to the economy. A Bank of America report citing data from EPFR Global showed that U.S. stock funds enjoyed a ninth week of inflows, reaching $25.9 billion, the longest streak since December 2021.

As the week draws to a close, traders still have to contend with the year’s largest quarterly options and futures expiration on Friday and the potential for volatility. According to Tier1Alpha strategists, a staggering $3.1 trillion in open interest is either expiring or rolling over into the new year.

In other news, European Central Bank (ECB) President Christine Lagarde warned that policymakers were not ready to follow the Fed’s policy shift, which dampened market excitement to a certain extent. Markets believe the central bank will start cutting interest rates in the first half of next year, which is ahead of expectations, a member of the ECB’s Governing Council said on Friday. Lagarde said yesterday that the bank had not discussed cutting interest rates at all.

“The contrast between a resilient U.S. economy taking a dovish stance and a faltering European economy sticking to a hawkish stance creates a contrast,” Swissquote senior analyst Ipek Ozkardeskaya wrote in a note to clients. It’s an unusual impression.”

As of 22:00 Taipei time on Thursday (15th): Focus stocks:

Intel (INTC-US) shares rose 2.43% to $46.28 per share in early trading

Intel announced a series of new artificial intelligence (AI) products on Thursday during the company’s AI Everywhere event, including fifth-generation Xeon processors for enterprises and Core Ultra chips for personal computers (PCs). In addition, the company also claims that the third-generation AI accelerator Gaudi 3 will perform better than Huida (NVDA-US)’s flagship AI chip H100.

Tesla (TSLA-US) shares fell 0.52% in early trading to $249.75 per share

According to reports, Tesla will receive 2.63 billion pesos ($153 million) in factory construction incentives from the Mexican state of Nuevo Leon to build its next large factory in the state. The move shows local officials trying to ease concerns about delays in Tesla’s factory construction.

Costco (COST-US) shares rose 3.61% to $653.52 per share in early trading

Costco recently announced a good financial report for the first quarter of fiscal year 2024, kicking off a strong start to the new year. The main reason is that the end of the year shopping season in the United States has begun, and consumers are enthusiastically purchasing discretionary goods, including gold bars, Thanksgiving Day, etc. Pumpkin pie is a hot seller.

Today’s key economic data:

The New York Fed Manufacturing Index in the United States in December was -14.50, 2.0 expected, and the previous value was 9.10
U.S. industrial production in November reported a monthly rate of 0.2%, expected to be 0.3%, and the previous value – 0.9%
The US Markit manufacturing PMI index in December was at 48.2, expected 49.3, and the previous value was 49.4
The US Markit services PMI index in December was at 51.3, expected 50.6, and the previous value was 50.8
The US Markit composite PMI index in December was at 51.0, expected 50.5, and the previous value was 50.7

Wall Street analysis:

With the United States 10-Year Treasury Bond YieldFalling below the key 4% level, U.S. “Bond King” Gundlach warned that this is a warning that the U.S. economic outlook is not good.Gundlach said in an interview: “I think if 10-year U.S. Treasury yieldBelow 4%, that’s like a fire alarm for the economy… We’ve broken the trend line and from now on 10-year U.S. Treasury yieldJudging from the level, there is still a lot of room for downside. The U.S. economy is going to go down, and that’s going to have a ripple effect and we’re going to have to print a lot of money. “

U.S. stocks rallied after the Fed signaled that the threat of inflation is receding and the dot plot suggested three interest rate cuts next year.DowIt has hit record highs for two consecutive days. However, David Rosenberg, a big short seller on Wall Street and founder of Rosenberg Research, warned that investors may be celebrating too early.

2023-12-15 14:53:56
#U.S #stocks #early #tradingThe #market #cheers #interest #rate #cuts #subsided #major #indexes #mixed #Anue #JuhengU.S #Stock #Radar

December 15, 2023 0 comments

Business

Wall Street Rises on Dovish Fed Signal and Positive Economic Data

by Chief editor of world-today-news.com December 14, 2023

written by Chief editor of world-today-news.com

Major U.S. stock indexes opened higher on Thursday (14th), a day after the U.S. Federal Reserve (Fed) signaled that it would end its recent aggressive interest rate hikes and hinted at at least three interest rate cuts next year.

before deadline,Dow Jones Industrial Averagerose nearly 40 points or nearly 0.1%,Nasdaq Composite Indexrose more than 90 points or nearly 0.6%,S&P 500 Indexrose nearly 0.5%,Philadelphia SemiconductorThe index rose more than 2%.

U.S. stocks are expected to continue their gains after the dovish signal from the Fed sent a bullish signal to the market, and the outside world is optimistic that inflationary pressures are easing. On the other hand, after the European Central Bank (ECB) kept interest rates unchanged as expected,EURHolding on to earlier gains.

In terms of economic data, the latest data released by the United States on Thursday showed that the number of initial unemployment benefit claims fell to 202,000 last week, lower than economists expected, and the number of continuing unemployment benefits dropped to 1.876 million, also lower than expected, highlighting the job market Still solid. In addition, US retail sales increased by 0.3% in November, far exceeding the previous value and market expectations of -0.1%, and the growth rate turned from negative to positive again.

At the last monetary policy meeting of the year, the Fed announced that it would keep interest rates unchanged. At the same time, it lowered its forecasts for next year’s economy, overall inflation, and interest rates in its quarterly economic outlook, and estimated that the job market would remain stable. Fed Chairman Jerome Powell said at a press conference that interest rates are close to their peak and discussions on easing monetary policy have begun. It is worth noting that the Fed dot plot shows that it will cut interest rates three times next year, one more than in September.

As the Fed signaled a policy shift, the bank controlled soaring inflation without causing a recession or causing significant damage to the job market.In addition, Ball’s lack of resistance to investors’ growing expectations for a rate cut next year triggered a sharp rise in U.S. Treasury bond prices and willDow Jones Industrial Averagepushed to a record high.

Jefferies analyst W. Brad Bechtel said: “The Fed’s policy shift has officially come out and the market continues to digest the news. The dot plot suggests a 3-digit rate cut (75 basis points), while the market currently indicates a rate cut of about 140 basis points. So the two still need to coordinate, but Ball had the opportunity to drive down market pricing, but he certainly didn’t take action.”

Foreign media surveys show that investors predictS&P 500 IndexIt will rise to around 4,835 by the end of next year, up from the last survey before the Fed’s decision. But the gains, about 3% from current levels, reflect investor skepticism about how much U.S. stocks can rebound after rising more than 20% this year.

As of 22:00 Taipei time on Thursday (14th): Focus stocks:

Tesla (TSLA-US) shares rose 1.97% to $244.00 per share in early trading

According to electric vehicle website Electrek, Tesla and Uber (UBER-US) has reached a partnership that will provide Uber drivers with electric vehicles at a discount, saving them up to $3,000. This alliance will support Uber’s continued commitment to vehicle electrification.

Amazon (AMZN-US) shares rose 0.37% in early trading to $149.39 per share

Europe’s top court ruled on Thursday (14th) that Amazon does not need to pay Luxembourg 250 million in back paymentsEUR ($273 million) in taxes, which means that EU Antitrust Commissioner Margrethe Vestager’s crackdown on multinational companies has failed. The decision of the Court of Justice of the European Union is final.

Adobe (ADBE-US) shares fell 6.71% in early trading to $582.40 per share

Creative software company Adobe recently released a lower-than-expected financial forecast for 2024, and its stock price fell nearly 4% before the market opened on Thursday. The company forecast next year’s revenue to be between US$21.3 billion and US$21.5 billion, lower than Wall Street analysts’ expectations of US$21.73 billion; adjusted earnings per share are expected to be between US$17.60 and US$18, lower than analysts’ expectations. $18.

Today’s key economic data:

The U.S. import price index in November reported a monthly rate of -0.4%, expected -0.8%, and the previous value -0.6%
The U.S. export price index in November was -0.9% on a monthly basis, expected -1.0%, and the previous value -0.9%
U.S. core retail sales in November reported a monthly rate of 0.2%, expected -0.1%, and the previous value of 0.1%
U.S. retail sales in November reported a monthly rate of 0.3%, expected – 0.1%, and previous value – 0.2%
The number of people claiming unemployment benefits in the United States last week was 202,000, compared with the expected 220,000, and the previous value of 221,000
The number of people continuing to receive unemployment benefits in the United States last week was 187.6, 1.887 million expected, and the previous value was 1.856 million

Wall Street analysis:

As the Fed signals a policy shift, some big players in the bond community are divided over how high U.S. debt can go. According to Jeffrey Gundlach of DoubleLine Capital,10-year U.S. Treasury yieldIt will fall towards the low end of the 3% range, and the Fed may lower its cash rate target by a full two percentage points next year.

Former bond king Bill Gross dismissed the optimism, saying yields were close to where they should be at 4%.Gross, who once managed Pimco, the world’s largest bond fund, posted on the social media platform 10-year U.S. Treasury yieldPredictions of a drop to 3% next year are also “ridiculous”.

2023-12-14 14:41:37
#U.S #Stocks #Morning #TradingThe #Feds #interest #rate #cut #signal #stimulated #markets #major #indexes #open #higher #Anue #JuhengU.S #Stock #Radar

December 14, 2023 0 comments

Business

U.S. non-farm payrolls in November exceeded expectations, dampening the Fed’s hope of cutting interest rates early next year. Major indexes opened lower | Anue Juheng – U.S. Stock Radar

by Chief editor of world-today-news.com December 8, 2023

written by Chief editor of world-today-news.com

Major U.S. stock indexes opened lower on Friday (8th) as U.S. non-farm payrolls in November far exceeded expectations, suggesting the job market is still resilient and dampening market hopes for the Federal Reserve (Fed) to cut interest rates in March next year.

before deadline,Dow Jones Industrial Averagefell more than 20 points or nearly 0.1%,Nasdaq Composite Indexfell nearly 40 points or nearly 0.2%,S&P 500 Indexfell nearly 0.1%,Philadelphia SemiconductorThe index rose nearly 0.2%.

The latest data released by the United States showed that the number of new non-farm jobs increased to 199,000 in November, which was higher than market expectations. At the same time, the unemployment rate unexpectedly dropped to 3.7%, the labor participation rate increased slightly, and the wage growth rate for the month also beat the market. expected.

U.S. Treasury yields climbed after the data was released, as the jobs data supported speculation that the Fed would cut interest rates next year as being overdone. The rate-sensitive two-year Treasury yield rose 10 basis points in the short term to 4.7%,dollar indexAlso moving higher.

Florian Ielpo, an analyst at Lombard Odier Asset Management, said the November non-farm payrolls report will give the Fed reason not to cut interest rates in March – so the Fed should significantly revisit its bets.

Richard Flynn, an analyst at Charles Schwab in the UK, believes that today’s better-than-expected employment report shows investors that labor market demand is still strong, which may undermine public hopes that the Fed will cut interest rates sooner rather than later. This month’s jobs report did not reflect the cooling that the market might have hoped for, so it could affect expectations for Fed policy in the coming months.

Toggle AI analyst Giuseppe Sette pointed out that this non-farm payrolls report puts the Fed in a wait-and-see mode and is not in a hurry to cut interest rates when the job market is strong – in fact, it may be too early to cut interest rates. The data suggests that, for now, the economic slowdown is not having an impact on the labor market.

As of 22:00 Taipei time on Friday (8th):

Focus stocks:

Broadcom (AVGO-US) rose 0.61% to $927.85 per share in early trading

The last quarter results released by Broadcom showed that its fourth-quarter adjusted profit per share surged to US$11.06, higher than analysts’ expectations; overall revenue was US$9.3 billion, an annual increase of 4.1%, exceeding analysts’ expectations. The company estimates that the rapid expansion of AI computing will help offset its slowing sales.

Huida (NVDA-US) rose 0.58% in early trading to $468.67 per share

Reuters reported on Friday, citing people familiar with the matter, that U.S. chip giant Huida will discuss a semiconductor cooperation agreement with the country’s technology companies and authorities at a meeting in Hanoi, Vietnam next Monday (11th). The report pointed out that Vietnam, a Southeast Asian country, has large chip assembly plants, including Intel (INTC-US) the world’s largest factory. The country is trying to expand into chip design and even chip manufacturing as trade tensions between the United States and China create opportunities for Vietnam in this strategic industry.

apple (AAPL-US) fell 0.10% in early trading to $194.07 per share

India’s largest conglomerate, Tata Group, plans to build one of the country’s largest iPhone assembly plants; the move is expected to accelerate Apple’s manufacturing expansion in India; according to people familiar with the matter, the plant may have about 20 assembly lines and It will employ 50,000 workers within two years and aims to be operational within 12 to 18 months.

Today’s key economic data:

The number of new non-farm jobs in the United States in November was 199,000, compared with the expected 180,000, and the previous value of 150,000.
The U.S. unemployment rate in November was 3.7%, expected to be 3.9%, and the previous value was 3.9%
The average weekly working hours in the United States in November was 34.4 hours, compared with the expected 34.3 hours, and the previous value of 34.3 hours
The average hourly wage growth rate in the United States in November was 4.0%, compared with the expected 4.0% growth rate, and the revised previous value was 4.0%
The average hourly wage increase in the United States in November was 0.4%, which was expected to be 0.3%, and the previous value was 0.2%
The U.S. labor force participation rate in November reported at 62.8%, 62.7% expected, and the previous value of 62.7%
U.S. consumer confidence index in December is expected to be 62.0, compared with the previous value of 61.3
U.S. consumers expect one-year inflation in December to be 4.3%, up from 4.5% in the previous month
U.S. consumers expect five-year inflation in December to be 3.1%, down from 3.2% in the previous month

Wall Street analysis:

Bank of America strategist Michael Hartnett said U.S. stocks will be affected in the first quarter of next year as rising bond prices will signal slower economic growth. He also pointed out that falling yields have been one of the main catalysts for the stock market’s rise this quarter, but a further decline to 3% would mean a “hard landing” for the economy.

David Bailin, chief investment officer and head of investments at Citi Global Wealth, said stocks are ripe for further gains next year as inflation trends decline, the economy remains resilient and earnings rebound – adding to the growing number of investors who are still sitting on the sidelines. , the opportunity cost of investors holding on to cash.

2023-12-08 14:41:40
#U.S #stocks #early #trading #U.S #nonfarm #payrolls #November #exceeded #expectations #dampening #Feds #hope #cutting #interest #rates #early #year #Major #indexes #opened #Anue #Juheng #U.S #Stock #Radar

December 8, 2023 0 comments

Business

The main U.S. index opened higher on the small non-farm payrolls report in November | Anue Juheng – U.S. Stock Radar

by Chief editor of world-today-news.com December 6, 2023

written by Chief editor of world-today-news.com

The latest “small non-farm payrolls” report in the United States showed a weak job market, boosting investors’ expectations that the Federal Reserve (Fed) has ended its current tightening cycle and will cut interest rates as soon as March next year. The major U.S. stock indexes opened on Wednesday (6th) high.

before deadline,Dow Jones Industrial Averagerose nearly 80 points or nearly 0.2%,Nasdaq Composite Indexrose more than 50 points or nearly 0.4%,S&P 500 Indexrose nearly 0.3%,Philadelphia SemiconductorThe index rose nearly 1%.

The ADP employment report released by the United States on Wednesday, known as the “small non-agriculture”, showed that the number of U.S. private enterprise employment increased by 103,000 in November on a seasonally adjusted basis, which was far lower than the 130,000 expected by economists. 113,000 was revised sharply down to 106,000. U.S. companies scaled back hiring in November, further evidence that the job market is cooling.

After the data was released, the market strengthened expectations that the Fed would end its aggressive interest rate hikes and start cutting interest rates next year. Major index futures rose, withS&P 500 IndexFutures were set to snap two days of losses, while the yield on the more rate-sensitive two-year U.S. Treasury note hovered around 4.6%.dollar indexfluctuation.

Brown Brothers Harriman & Co. analyst Win Thin believes that a series of firm U.S. data may be needed to truly challenge the Fed’s current dovish remarks. He pointed out that even if the rest of the world enters recession and the U.S. economic growth continues to be maintained or higher than expected, price pressure remains and the Fed may not be able to cut interest rates as quickly as market expectations.

In terms of other economic data, U.S. mortgage rates fell to a new low in nearly four months last week, stimulating the largest refinancing demand since February this year.

On the energy front, international oil prices fell for a fifth consecutive trading day as heavy U.S. exports and doubts about whether the Organization of the Petroleum Exporting Countries and partners (OPEC+) can achieve their planned production cuts raised concerns about oversupply.

cryptocurrencyaspect,BitcoinIt was trading around $44,000, marking its longest winning streak since May, in part due to expectations that the Federal Reserve will ease monetary policy.

As of 22:00 Taipei time on Tuesday (6th):

Focus stocks:

apple (AAPL-US) rose 0.07% in early trading to $193.56 per share

Apple’s iMessage service appears on track to avoid new European Union antitrust sanctions aimed at curbing big tech platforms after EU regulators initially concluded that iMessage wasn’t popular enough among business users to be affected by the rules. It is reported that European Commission officials are inclined to suspend penalties against Apple as part of a five-month market investigation that will end in February next year.

Microsoft (MSFT-US) rose 0.03% in early trading to $372.63 per share

U.S. antitrust enforcers believe that a federal judge erred in ruling that Microsoft’s $69 billion acquisition of Activision Blizzard, the developer of the “Call of Duty” game, complied with competition law. There will be another round of discussion on the matter on Wednesday (6th). The challenge is the latest attempt by authorities to block the deal.

NIO (NIO-US) rose 2.85% to $7.64 per share in early trading

According to foreign media reports, Chinese electric vehicle manufacturer NIO plans to spin off its battery manufacturing unit as part of the company’s efforts to turn a profit, reduce costs and improve efficiency. NIO’s new battery unit will be led by senior manufacturing engineers who previously worked at Apple (AAPL-US) and Panasonic. The unit will seek outside investors after it is spun off as soon as the end of this year, with a valuation to be decided later.

Today’s key economic data:

U.S. ADP employment in November changed to 10.3, expected 120,000, and the previous value was 106,000
The U.S. trade balance in October reported – $64.3 billion, expected – $61.5 billion, and the previous value – $61.2 billion

Wall Street analysis:

BlackRock global strategist Wei Li believes that the Fed may cut interest rates less frequently than market expectations, and interest rate fluctuations may lead to greater turbulence in global markets next year. Interest rate futures data show that traders expect the Fed to cut interest rates by 125 basis points next year. The strategist believes that relevant expectations may be overly optimistic, so once the market realizes the variables, the stock market may fluctuate greatly.

Morgan Stanley analysts said that the stock market is repeating the mistakes of 17 years ago, hoping that the Fed’s interest rate cut will drive the stock market to rise sharply again, but the results may disappoint investors. The market expects the Fed to cut interest rates in the later stages of the economic cycle, when economic growth tends to slow down and there is even a risk of falling into recession. This could result in lower-than-expected stock market returns.

2023-12-06 14:38:54
#U.S #Stocks #Early #Trading #main #U.S #index #opened #higher #small #nonfarm #payrolls #report #November #Anue #Juheng #U.S #Stock #Radar

December 6, 2023 0 comments

Newer Posts

Older Posts