After the market digested the news of the Omicron mutant strain and the non-agricultural employment in November, which was far below expectations, US stocks opened higher and lowered on Friday (3rd). Before the deadline, the Dow Jones Industrial Average fell more than a hundred points or 0.3%, the Nasdaq Composite Index fluctuated lower, down about 1%, the S&P 500 Index fell 0.3%, and the Philadelphia Semiconductor Index rose 0.8%. Didi (DIDI-US) dropped more than 9% at the opening.
After many days of volatility, although the impact of Omicron is still uncertain, the major US stock indexes still closed in the red yesterday.
On the news of the epidemic, after the first case of Omicron confirmed in California, Omicron cases have also appeared in Minnesota, Colorado, and New York in the United States, bringing the cumulative number of Omicron confirmed cases across the United States to 10.
The United States announced that non-agricultural employment created 210,000 in November, the smallest increase this year, and less than half of market expectations. The unemployment rate unexpectedly exceeded expectations, falling from 4.6% in October to 4.2%, returning to before the outbreak of the epidemic last year. Level, the labor participation rate rose to 61.8%.
Other data such as IMS non-manufacturing PMI and factory orders will be announced later.
Before the deadline, the 10-year U.S. Treasury yield fell to %, the U.S. dollar, and oil prices continued to rise. Even though Omicron might hurt demand, OPEC+ decided on Thursday to continue its current plan to increase production by 400,000 barrels per day in January next year.
On the news of individual stocks, under pressure from the United States and China, Didi (DIDI-US) announced its delisting from the New York Stock Exchange and listing in Hong Kong, which fell more than 8% after the opening.
As of Friday (3rd) 22 o’clock Taipei time:
- The Dow Jones Industrial Average fell 109.96 points or -0.32%, temporarily reporting 34529.83 points
- The Nasdaq Composite Index fell 153.93 points, or -1.00%, to 15214.89 points temporarily
- The S&P 500 Index fell 11.82 points, or -0.26%, to 4565.28 points temporarily
- Fees and a half rose by 30.06 points, or 0.79%, to 3841.01 points temporarily
- TSMC ADR drops 1.18% to US$120.22 per share
- 10-year U.S. Treasury yield rises to 1.458%
- New York light crude oil rose 3.61% to US$68.90 per barrel
- Brent crude oil rose 3.76% to $72.29 per barrel
- Gold rose 0.49% to $1,771.40 per ounce
- The dollar index rose to 96.275
Didi (DIDI-US) fell 9.62% in early trading to $7.05.
Didi announced on Friday that after the authorization of the board of directors, it has initiated the delisting of the New York Stock Exchange and is preparing to list in Hong Kong.
DocuSign (DOCU-US) fell 36.64% in early trading to US$148.14.
Electronic signature platform DocuSign announced on Thursday that its fiscal year Q3 revenue and profit were better than expected, but demand showed signs of weakening, and the Q4 revenue outlook was worse than analyst estimates.
Marvell Technology (MRVL-US) rose 21.98% in early trading to $86.64.
Marvell announced on Thursday that Q3 revenue increased 61% annually to 1.21 billion U.S. dollars, and adjusted EPS reported 43 cents. At the same time, it is expected that Q4 revenue will fall between 1.28 billion and 1.36 billion U.S. dollars, and adjusted EPS will be 45 cents to 1.36 billion U.S. dollars. At 51 cents, the financial report and financial test were better than market expectations.
Today’s key economic data:
- The non-agricultural new employment in the United States in November reported 210,000, which is expected to be 500,000. The previous value was revised up from 531,000 to 546,000
- The U.S. unemployment rate reported 4.2% in November, expected to be 4.5%, and 4.6% from the previous value
- The average weekly working hours reported in November in the United States was 34.8 hours, up from 34.7 hours before
- The average hourly salary increase rate in the United States in November is 4.7%, which is expected to be 5.0%, and the previous value is 4.9%
- The average monthly salary increase rate per hour in the United States in November is reported to be 0.2%, which is expected to be 0.4%, and the previous value is 0.4%
- The labor participation rate in the United States reported 61.8% in November, up from 61.6% of the previous value
Wall Street analysis:
Steven Wieting, a private bank investment strategist at Citigroup, believes that the market environment is changing, and monetary and fiscal policies are losing momentum. This does not mean that the market is falling, but it will not be the same as in the past year. All assets are rebounding.
Carsten Brzeski, head of global macro research at ING Group, said that since the Omicron news broke, we can see that the market is highly volatile and extremely nervous this week. This situation is expected to continue until more people learn about Omicron.
Sam Bullard, senior economist at Wells Fargo, said that the tight labor supply situation shows no signs of significant improvement, and the situation is likely to worsen as the new crown vaccine mandate takes effect.
Steve Rick, chief economist of CUNA Mutual Group, believes that with the arrival of winter, uncertainty will only increase. While preparing for Omicron’s invasion and continuing to fight against high inflation and supply chain crises, even if non-agricultural employment fails this month It will not surprise anyone to meet expectations.