U.S. debt surges, Apple’s market value regains $3 trillion crown, Dow Jones falls for the first time in a row in the past month | Anue Juheng – U.S. Stock Radar

The latest employment data strengthened expectations that the Federal Reserve will cut interest rates as soon as March next year.10-Year Treasury Bond YieldBreaking 4.2%, the main US stock index had mixed gains and losses on Tuesday (5th).Apple’s market capitalization exceeded US$3 trillion for the first time since early August, eliminatingDow Jonespartial loss,Dow JonesIt closed nearly 80 points lower, marking the first consecutive decline in the past month.

In terms of data, the number of job vacancies in the United States fell to 8.733 million in October, the lowest since the beginning of 2021, far lower than market expectations. At the same time, the number of hirings in the United States fell slightly to 5.9 million in October, while the number of resignations rose slightly to 5.6 million. people, highlighting that the job market may be cooling.

In terms of politics and economy, the last interest rate decision-making meeting of the year will be held on December 12th and 13th. Federal Reserve officials are entering a period of silence. The market predicts that the probability of the Federal Reserve cutting interest rates in the first quarter of next year is 70%, and is expected to The Fed will cut interest rates five times by the end of 2024.

The change in thinking of the European Central Bank is in line with expectations of a U.S. central bank shift. The most hawkish official of the European Central Bank, Isabel Schnabel, has turned dovish. She said that given the “significant” decline in inflation, the European Central Bank does not need to raise interest rates. In addition, Policymakers should not lead markets to believe that interest rates will remain stable until mid-2024.

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said in an interview on Monday that oil production cuts by the Organization of the Petroleum Exporting Countries and its partners (OPEC+) can “absolutely” continue beyond the first quarter if necessary. , and promised to fully implement production cuts.

According to the latest report released by McKinsey, banks using generative artificial intelligence (AI) tools can increase revenue by up to $340 billion per year through increased productivity, hoping to help the industry adapt to this rapidly growing field.

Moody’s issued a statement on Tuesday, lowering China’s outlook from stable to negative while retaining the long-term rating of China’s sovereign bonds at A1. Moody’s said China’s use of fiscal stimulus to support local governments and its worsening real estate downturn are creating risks for the country’s economy. Chinese officials said they were “disappointed” with Moody’s decision.

Performance of major U.S. stock indexes on Tuesday (5th):

• US stocksDow Jones IndexIt fell 79.88 points, or 0.22%, to close at 36,124.56 points.
• NasdaqThe index rose 44.42 points, or 0.31%, to close at 14,229.91 points.
• S&P 500 IndexIt fell 2.6 points, or 0.06%, to close at 4,567.18 points.
• Philadelphia SemiconductorThe index fell 21.05 points, or 0.57%, to close at 3,672.39 points.
• The NYSE FANG + index rose 51.65 points, or 0.64%, to close at 8,155.01 points.

Focus stocks

The five technology kings in the NYSE FANG+ index were led by Apple. apple (AAPL-US) rose 2.11%; Alphabet (GOOGL-US) rose 1.34%; Meta (META-US) fell 0.54%; Microsoft (MSFT-US) rose 0.92%; Amazon (AMZN-US) rose 1.41%.

Dow JonesComponent stocks were mixed. Baoqiao (PG-US) fell 3.49%; Goldman Sachs (GS-US) fell 2.19%; Dow Chemical (DOW-US) fell 1.84%; Verizon Communications (VZ-US) rose 1%; Merck (MRK-US) rose 1.11%.

half feeComponent stocks closed mostly in the black. Broadcom (AVGO-US) fell 1.17%; Qualcomm (QCOM-US) rose 0.62%; Huida (NVDA-US) rose 2.33%; Micron (MU-US) fell 0.81%; Applied Materials (AMAT-US) fell 1.43%; AMD (AMD-US) fell 0.14%; TI (TXN-US) fell 0.11%.

Among Taiwan stock ADRs, UMC performed the worst. TSMC ADR (TSM-US) fell 0.33%; ASE ADR (ASX-US) fell 0.46%; UMC ADR (UMC-US) fell 1.53%; Chunghwa Telecom ADR (CHT-US) rose 0.73%.

Corporate News

Motivated by multiple bullish news, Apple (AAPL-US) rose 2.11% to $193.42 per share, regaining the $3 trillion crown for the first time since early August.

Reuters reported on Tuesday, citing sources, that Hon Hai has resumed iPhone production at its factory in India. Bank of America analysts said in a report that Apple’s App Store revenue in the first quarter of fiscal year 2024 will increase by 11.3% year-on-year. Technical analysts previously pointed out that Apple’s stock price has been trading sideways for some time and is currently touching the 20-day moving average, which may be a bullish signal.

Chinese electric car maker NIO (NIO-US) closed at a 1.50% dividend to $7.43 per share. NIO announced its bleak financial results for the third quarter of fiscal year 2023 before the market opened on Tuesday. Although revenue in the quarter increased by more than 40%, it was still lower than Wall Street analysts’ expectations. At the same time, the loss in the quarter increased by more than 10% compared with the same period last year. In addition, in the fourth quarter Electric vehicle delivery numbers and revenue outlook also performed poorly.

Ericsson ADR (ERIC-US) was up 4.00% at $5.46 per share. Rival Nokia ADR (NOK-US) fell 5.06% to $3.00 per share. AT&T announced it has chosen telecommunications equipment maker Ericsson to modernize its U.S. wireless network, a project that could cost nearly $14 billion over five years.

FuGuo bank (WFC-US) fell 1.40% to $44.49 per share. Wells Fargo CEO Charlie Scharf said Tuesday that job cuts are coming and severance pay will be close to $1 billion in the fourth quarter.

American software open source platform GitLab (GTLB-US) surged 11.45% to $58.99 per share. GitLab’s latest financial report beat expectations and recorded its first adjusted profit, while issuing strong guidance for the quarter.

Economic data

• The ISM non-manufacturing index in the United States in November was 52.7, expected 51.8, and the previous value was 52.
• The number of JOLTs job vacancies in the United States in October was reported at 8.733 million, compared with the expectation of 9.553 million, and the previous value of 9.3 million.

Wall Street Analysis

“As interest rates rise and demand slows, companies are reducing job openings, which is essentially what the Fed wants to see,” said Sam Stovall, investment strategist at CFRA Research.

Julia Pollak, chief economist at ZipRecruiter, said: “The employment data shows that the chances of the United States achieving the soft landing goal are getting higher and higher, and we are very, very close.”

Many on Wall Street say these bullish signals could continue into 2024, with analysts saying they expectS&P 500 IndexIt will top out at 4,700 points.

Jeremy Siegel, a well-known finance professor at the Wharton School of the University of Pennsylvania, pointed out: “Dow JonesWe are very close to reaching a new all-time high, and as we will see in the coming months, the main risk to forecasting a U.S. stock rally is that the Fed remains focused on inflation concerns. “

Jason Heller, senior executive vice president at Coastal Wealth, warned: “Investors should lower their expectations for a rise in the stock market in 2024. Given high interest rates, weak consumers and weakening earnings expectations, the stock market has few catalysts to continue rising, and the stock market is expected to remain in a tight range. trade.”

The figures are all updated before the deadline, please refer to the actual quotation.