The United States earlier announced that the November small non-agricultural ADP employment report was better than expected. As bargain hunting entered the market, major US stock indexes opened up on Wednesday (1st). Before the deadline, the Dow Jones Industrial Average rose nearly 250 points by 0.7%, the Nasdaq Composite Index rose 1%, the S&P 500 Index rose nearly 1.1%, and the Philadelphia Semiconductor Index rose 1.4%. Apple rose 1.5% after the opening, and its share price set a new high.
US Federal Reserve (Fed) President Jerome Powell yesterday’s release of eagles dragged down US stocks. While the market is concerned about the lack of effectiveness of existing vaccines against Omicron, Fed President Bauer said on Tuesday that he no longer believes that inflation is only temporary, and that the Fed is considering discussions on accelerating debt reduction plans. The Fed will publish the Economic Beige Book at 2:00 Taipei time on Thursday.
In terms of economic data, in the United States, ADP created 534,000 new jobs in November. Although the increase was slightly lower than the previous value, it was still higher than market expectations. Later, ISM will announce the latest manufacturing PMI. The rate rose to 61.
Before the deadline, the yield on the 10-year U.S. Treasury rose to 1.480%, and the U.S. dollar fell slightly.
According to individual stock news, Merck (MRK-US) rose more than 1% at the opening. The FDA expert advisory panel voted to authorize the use of Merck’s Covid-19 antiviral oral pills on Tuesday. The economic restart concept stocks such as aviation and cruise ships also rose simultaneously.
Large technology stocks collectively rose. Before the deadline, Alphabet (GOOGL-US) rose 1.4%, Microsoft (MSFT-US) rose 1.35%, Apple (AAPL-US) rose 1.5%, stock prices continued to reach new highs, Amazon (AMZN-US) Rose 1%, Meta (FB-US) rose 0.7%.
International oil prices bounced strongly on Wednesday. Brent crude oil and WTI crude oil futures both rose more than 3% before the deadline. OPEC + will hold a ministerial meeting later. After the Omicron variant is revealed, the market will pay attention to whether OPEC + will temporarily postpone its production increase plan.
As of 22 o’clock on Wednesday (1st) Taipei time:
- The Dow Jones Industrial Average rose 246.48 points, or 0.71%, to temporarily report 34730.20 points
- The Nasdaq Composite Index rose 160.55 points, or 1.03%, to 15698.18 points temporarily
- The S&P 500 Index rose 49.10 points or 1.08%, temporarily reporting 4616.10 points
- Fees rose by 54.90 points or 1.43%, temporarily at 3,887.86 points
- TSMC ADR rises 2.91% to US$120.56 per share
- The 10-year U.S. Treasury yield rose to 1.480%
- New York light crude oil rose 3.19% to US$68.29 per barrel
- Brent crude oil rose 3.28% to $71.50 per barrel
- Gold rose 0.75% to $1789.80 per ounce
- The dollar index fell to 95.82
Spotlight stocks:
Salesforce (CRM-US) fell 4.01% in early trading to $273.54.
Salesforce announced on Tuesday that Q3 revenue for the fiscal year increased by 27% to 6.86 billion U.S. dollars. The adjusted EPS was 1.27 U.S. dollars, beating Wall Street expectations, but Q4 financial estimates were poor.
Merck (MRK-US) rose 1.32% in early trading to $75.85.
After a vote, the US Food and Drug Administration (FDA) expert advisory group finally supported the use of Merck’s Covid-19 antiviral oral pills with a slight gap. It is expected that the authorization will be officially announced in the near future.
Hewlett Packard Enterprise (HPE-US) fell 2.58% in early trading to $13.98.
Hewlett Packard Enterprise’s Q4 revenue for the after-hours fiscal year on Tuesday increased by 2% to 7.35 billion US dollars, slightly lower than market expectations, but EPS was higher than estimated. The company said that the short supply of chips will still be a problem in the short term, making it difficult to meet the market’s demand for hardware equipment.
Today’s key economic data:
- In the United States, ADP small non-agricultural employment in November reported 534,000 new jobs, which is expected to be 515,000. The previous value was slightly revised down from 571,000 to 570,000.
- 23:00 Taipei time announced the US November ISM manufacturing PMI, expected 61.0, previous value 60.8
- 23:30 Taipei time last week’s EIA crude oil inventory increase and decrease, the previous value was 1.017 million barrels
Wall Street analysis:
Richard Saperstein, investment director of Treasury Partners, said that in the long run, reducing debt purchases will be welcomed by the market because it shows potential economic strength. Assuming that vaccines are eventually found to be effective against Omicron, economic activity will remain strong as the engine of economic growth shifts from commodities to services.
S&P Dow Jones Indices (S&P Dow Jones Indices) analyst Howard Silverblatt believes that although at this stage, once the new variant virus develops worse than expected, it may cause serious consequences, but in the long run, this is not a cause for Wall Street. The biggest factor of fear is inflation.
