Major US stock indexes opened mixed on Thursday (4th) after the latest data released by the US showed the jobs market remained resilient, cooling market expectations for an interest rate cut early by the Federal Reserve (Fed).
Before the deadline, the Dow Jones Industrial Average rose more than 90 points or almost 0.3%, the Nasdaq Composite Index fell more than 40 points or almost 0.3%, the S&P 500 Index rose almost 0.04%, and the Philadelphia Semiconductor Index fell more than 1%.
US Treasury yields rose broadly and the dollar steadied after four straight days of gains after strong US employment data raised concerns about the Federal Reserve’s path to cutting interest rates.
S&P 500 futures were little changed after ending three days of selling yesterday, while Nasdaq 100 futures were lower after Apple suffered its second downgrade this week. US Treasury bond prices extended losses after ADP reported higher-than-expected job creation in December and lower-than-expected jobless claims last week.
In particular, in December last year, the number of ADP workers, known as “small non-agricultural workers”, increased by 164,000, which is much higher than the market expectations of 115,000, and the previous value was 101,000; the number of people receiving unemployment benefits at the beginning of last week was 202,000, which was lower than expected 216,000, the previous value was 220,000.
The consensus among investors is that the market is overdue for a pullback after stocks soared late last year. The Nasdaq 100 fell nearly 3% in two days this month, and exchange traders have been hedging their bets on rate cuts.
“This confirms that things are not going to move as quickly as some hoped. What needs to be accepted is that the Fed is still very much driven by inflation and economic data,” Lindsay said. James, Quilter Investors investment strategy.
On the energy front, West German crude oil futures were trading at more than US$73 a barrel this week, mainly due to supply disruptions in Libya; Brent crude oil futures were trading at nearly US$79 a barrel.
From 22:00 Taipei time on Thursday (4th): Stocks in focus:
Shares of Apple ( AAPL-US ) fell 0.95% in early trading to $182.50 a share
According to foreign media reports on Thursday, Apple has become the most unpopular large technology stock on Wall Street and has been downgraded once again by another investment bank. This move revealed not only Wall Street’s growing concerns about Apple’s iPhone sales, but also highlighted the cautious ones. analysts attitude. .
Shares of Mobileye ( MBLY-US ) fell 27.34% in early trading to $28.86 a share
Mobileye, an autonomous driving technology company owned by US chipmaker Intel (INTC-US), warned on Thursday that fewer orders from customers clearing excess inventory would hit revenue this year. Shares of automotive chip suppliers sold off after the news broke.
Shares of Walgreens ( WBA-US ) fell 8.02% in early trading to $23.49 a share
Walgreens, the drug and cosmetics retail giant, announced its first quarter financial results for the 2024 fiscal year before the US stock market opened on Thursday. performance was also excellent, with both beating Wall Street. Notably, the company announced it would reduce its quarterly dividend for the first time in almost 50 years to save cash.
Today’s key economic data:
- US ADP added 164,000 new jobs in December last year, compared to expectations of 115,000, and the revised previous value of 101,000
- The number of people who claimed initial jobless benefits in the United States last week was 202,000, compared with the expected 216,000, and the revised previous figure was 220,000.
- The number of people continuing to receive unemployment benefits in the United States last week was 1.855 million, and that is expected to be 1.883 million. The revised previous value was 1.886 million.
- The final value of the Markit Comprehensive PMI in the US in December last year was 50.9, expected to be 51.0, and the previous value was 50.7
- The final value of the Markit US services PMI in December last year was 51.4, which was expected to be 51.3 and the previous value was 50.8.
Wall Street Analysis:
Peter Cardillo, chief market economist at Spartan Capital Securities, said today’s ADP and jobless benefits data put a question mark over whether tomorrow’s nonfarm payrolls report will beat market expectations. Although today’s data is favorable for those looking forward to a soft landing for the US economy, US stocks have already experienced a sharp rebound and are now experiencing a technical correction.
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