The latest U.S. non-farm payrolls report shows that the economy is growing steadily. Wall Street got rid of the recession warning issued by the bond market on the first trading day of April. It finished higher and closed in the red, but Feihan fell 1.82%.
The 2-year U.S. Treasury yield (2.428%) jumped above the 10-year U.S. Treasury yield (2.360%), with key U.S. Treasury yields inverting again on Friday, signaling that a recession may be imminent.
The U.S. Department of Labor announced on Friday (1st) that the U.S. nonfarm payrolls increased by 431,000 in March, slightly less than expected, the smallest increase since November last year, and the unemployment rate fell from 3.8% to 3.6%. This report is enough to show The U.S. economy has continued to grow strongly since the outbreak of the virus two years ago, boosting investor confidence.
Chicago Fed President Charles Evans said on Friday that he supports one rate hike at each meeting for the remainder of the year amid high inflation and a hot labor market.
The U.S. House of Representatives passed the Marijuana Opportunity Reinvestment and Exemption Act, or MORE Act, by a vote of 220 to 204 on Friday, before moving to the Senate for a vote and requiring at least 60 votes to pass legislation , as investors took profits, marijuana stocks closed lower on Friday.
In addition, there has been a lot of bullish news in China concept stocks. Foreign media quoted sources on Friday as saying that the Chinese government is preparing to allow the United States to obtain most of the audit papers of China concept stocks as early as mid-2022, but some state-owned enterprises that hold sensitive data And private companies cannot escape the delisting from the United States.
The global epidemic of new coronary pneumonia (COVID-19) continues to spread. Before the deadline, data from Johns Hopkins University in the United States pointed out that the number of confirmed cases worldwide has exceeded 489 million, and the number of deaths has exceeded 6.14 million. More than 11.2 billion vaccine doses have been administered in 184 countries worldwide.
The performance of the four major U.S. stock indexes on Friday (1st):
- The Dow Jones Industrial Average rose 139.92 points, or 0.4 percent, to end at 34,818.27.
- The Nasdaq added 40.98 points, or 0.29%, to 14,261.5.
- The S&P 500 gained 15.45 points, or 0.34%, to 4,545.86.
- The Philadelphia Semiconductor Index fell 62.36 points, or 1.82 percent, to 3,366.64.
Focus stocks
Of the five kings of technology, only the apple perished. Apple (AAPL-US) was down 0.17%; Meta (formerly Facebook) (FB-US) was up 1.12%; Alphabet (GOOGL-US) was up 0.78%; Amazon (AMZN-US) was up 0.35%; Microsoft (MSFT-US) was up 0.35% ) rose 0.36%.
The Dow Jones components ended mostly higher. Verizon Communications (VZ-US) rose 2.32%; Visa (V-US) rose 2.07%; Merck (MRK-US) rose 1.79%; Baoqiao (PG-US) rose 1.5%; Walgreens United Boots ( WBA-US) fell 2.03%; Kaifa Heavy Industries (CAT-US) fell 1.37%.
More than half of the half-constituent stocks closed in the black. AMD (AMD-US) fell 1.05%; NVIDIA (NVDA-US) fell 2.10%; Intel (INTC-US) fell 2.93%; Applied Materials (AMAT-US) fell 3.33%; Micron (MU-US) fell 2.20% ; Qualcomm (QCOM-US) fell 3.81%.
Chunghwa Telecom is the strongest in Taiwan ADR. TSMC ADR (TSM-US) fell 1.41%; ASE ADR (ASX-US) fell 0.71%; UMC ADR (UMC-US) fell 3.51%; Chunghwa Telecom ADR (CHT-US) rose 0.56%.
Corporate News
Tech giant Apple (AAPL-US) fell 0.17% to $174.31 a share. Qualcomm (QCOM-US) fell 3.81% to $146.99 a share. Apple and Qualcomm were removed from the JPMorgan analyst’s watch list. Morgan Stanley said investors appear to be worrying about stocks related to consumer electronics, as consumer spending is likely to fall.
China’s top three electric vehicle brands are up, with Li-US (LI-US) up 5.54%, NIO (NIO-US) up 4.18% and Xiaopeng (XPEV-US) up 5.80%. The latest report cards of the three companies have been released. Xiaopeng won the championship in the number of vehicles delivered in March, with a total of 15,414 vehicles delivered last month, a monthly increase of 148% and an annual increase of 202%. Li Auto delivered 11,034 vehicles, an annual increase of 125.2%. NIO delivered a total of 9,985 vehicles, a year-on-year increase of 37.6%.
General Motors (GM-US) fell 1.78% on Friday and Ford Motor (F-US) fell 1.54% as GM and Ford both announced vehicle recalls due to failures in parts or systems.
Tilray (TLRY-US) fell 3.73%, Canopy Growth (CGC-US) fell 2.77%, and Aurora (JG-US) rose 0.91%.
GameStop (GME-US) fell 0.95% to $165.00 a share. However, GameStop plans to seek shareholder approval to increase the number of shares to be offered for a stock split, from 300 million to 1 billion shares, GameStop said in a March 31 filing with the U.S. Securities and Exchange Commission (SEC).
Economic data
- US March non-farm payrolls reported 431,000, expected 490,000, the previous value of 678,000
- The U.S. unemployment rate in March was 3.6%, expected to be 3.7%, and the previous value of 3.8%
- The average hourly wage in the United States in March reported an annual rate of 5.6%, expected 5.5%, and the previous value of 5.1%
- The U.S. average workweek in March was 34.6 hours, expected 34.7 hours, and the previous value of 34.7 hours
- The U.S. labor force participation rate in March reported 62.4%, expected 62.4%, and the previous value of 62.3%
- U.S. March Markit Manufacturing PMI final value at 58.8, expected 58.5, the previous value of 58.5
- US March ISM manufacturing index is expected to report 57.1, expected 59, the previous value of 58.6
- U.S. construction spending in February reported a monthly rate of 0.5%, estimated at 1.0%, and the previous value of 1.3%
Wall Street Analysis
Despite recent volatility in the stock market, the second half of March saw a strong rebound in U.S. stocks as the S&P rebounded more than 10% from this year’s lows. The S&P edged up for the week, while the Dow Jones fell 0.12% for the week and the Nasdaq gained 0.65% for the week.
Market watchers attribute the rebound to possible peace talks between Russia and Ukraine, as well as investors’ adjustment to the Fed rate hike, and analysts at LPL Financial also point to good corporate earnings reports as another factor driving the recent rebound. .
In response to the latest non-agricultural report, Moody’s Analytics analyst Mark Zandi pointed out that the non-agricultural report brings good news, which means that the economy has almost fully recovered from the impact of the epidemic, but it is somewhat disturbing that the labor market must cool down quickly. , otherwise the biggest economic problem in the United States, “inflation”, will soon lead to even more trouble.
“It’s a pretty solid report, obviously inflation is still an issue, but it certainly doesn’t change the Fed’s actions,” said Randy Frederick, managing director of trading and derivatives at the Schwab Center for Financial Research. , the market has already hinted that the Fed will raise rates by 50 basis points in May.”
Neil Birrell, chief investment officer at Premier Miton Investors, said U.S. job vacancies are still being filled and wage growth remains strong, indicating that the economy is in good shape, and now the focus will be on the follow-on impact of higher interest rates and slower growth on the job market and the broader economy.
With key U.S. Treasury yields turning upside down again. “It’s a warning about the Fed’s ability to get things right, and the concern is justified,” said Keith Lerner, a strategist at Truist Advisory Services. “But much of the data itself suggests the inversion of the U.S. yield curve isn’t short-term. sell signal.
The figures are updated before the deadline, please refer to the actual quotation.
