The non-farm payrolls data was far better than expected, intensifying the debate over when the Federal Reserve will cut interest rates. U.S. stocks fluctuated after opening flat on Friday (5th), with Apple rising first and then falling, extending its four-day decline.
The main U.S. stock index closed slightly higher on Friday, but the nine-week winning streak ended. Looking at it in a week,that fingerWeekly closed 3.3% lower,Dow Jonesand the S&P fell 0.6% and 1.5% respectively on the week, marking the worst start to the year since 2016.
Data from the U.S. Department of Labor showed that non-farm employment increased by 216,000 people in December last year, far exceeding market expectations of 170,000. The previous value was significantly revised down to 173,000. The unemployment rate fell to 3.7%, lower than market expectations of 3.8% and the same as the previous value. Such hot data dampened traders’ expectations that the Federal Reserve (Fed) would start cutting interest rates as soon as March.
It is worth noting that average hourly earnings increased by 0.4% monthly in December last year, exceeding expectations.
Different from the “hawkish” non-agricultural data, the latest data released by the Institute for Supply Management (ISM) on Friday was relatively “dovish”. The U.S. non-manufacturing index fell to 50.6 in December from 52.7 in the previous month, the largest drop in three months and far lower than economists’ expectations of 52.6. Although the index is still at the 50 boom-bust line, it is the second-lowest level in a year.
U.S. stocks fell in the first week of 2024, and people began to doubt whether the Federal Reserve was ready to turn. The futures market expected that the probability of the Federal Reserve cutting interest rates in March dropped to about 65%. Against this background, U.S. Treasuries set off a wave of selling.10-year U.S. Treasury yieldAfter climbing on Thursday, it rose about 5 basis points to 4.04%, rising by 16.67 basis points this week.
U.S. Treasury Secretary Yellen pointed out on Friday that wage increases now exceed price increases and U.S. labor is making progress, which means the Federal Reserve has made a good decision and the economy has seen a soft landing. Richmond Fed President Thomas Barkin said on Friday that the likelihood of a reacceleration of economic expansion is no longer that high and that as the economy normalizes, the Fed’s interest rate policy should also normalize.
Looking ahead, new inflation data will be released next week, and a U.S. Consumer Price Index (CPI) report is scheduled for next Thursday, helping to show whether the Fed is making further progress in its efforts to curb inflationary pressures.
Performance of major U.S. stock indexes on Friday (5th):
- US stocksDow Jones IndexIt rose 25.77 points, or 0.07%, to close at 37,466.11 points.
- NasdaqThe index rose 13.77 points, or 0.09%, to close at 14,524.07 points.
- S&P 500 IndexIt rose 8.56 points, or 0.18%, to close at 4,697.24 points.
- Philadelphia SemiconductorThe index rose 24.63 points, or 0.63%, to close at 3,933.49 points.
- The NYSE FANG + index rose 48.76 points, or 0.58%, to close at 8,415.02 points.
The 11 major S&P sectors generally ended in the red, with utilities (+0.39%) and financials (+0.37%) leading the gains.Consumer staples suffered the biggest decline (-0.24%) (Photo: finviz) Focus stocks
The five tech kings in the NYSE FANG+ index were mixed. apple (AAPL-US) fell 0.40%; Alphabet (GOOGL-US) fell 0.48%; Meta (META-US) rose 1.39%; Microsoft (MSFT-US) fell 0.05%; Amazon (AMZN-US) rose 0.46%.
Dow JonesConstituent stocks have waxed and waned with each other. UnitedHealth (UNH-US) fell 1.47%; IBM (IBM-US) fell 1.06%; McDonald’s (MCD-US) 跌 0.94%；Verizon Communications (VZ-US) rose 2.11%.
half feeMost of the constituent stocks received dividends. Micron (MU-US) rose 0.89%; AMD (AMD-US) rose 1.89%; Broadcom (AVGO-US) rose 0.03%; Qualcomm (QCOM-US) rose 0.41%; Huida (NVDA-US) rose 2.29%; Applied Materials (AMAT-US) fell 0.21%; Deyi (TXN-US) rose 0.39%.
Among Taiwan stock ADRs, TSMC performed best. TSMC ADR (TSM-US) rose 0.48%; ASE ADR (ASX-US) fell 0.23%; UMC ADR (UMC-US) fell 0.37%; Chunghwa Telecom ADR (CHT-US) rose 0.18%.
Corporate News
apple (AAPL-US) closed 0.40% lower at $181.18 per share. The New York Times reported, citing sources, that the U.S. Department of Justice’s investigation into Apple has entered an advanced stage and may file a comprehensive antitrust lawsuit as soon as the first half of this year over the company’s strategy to protect iPhone dominance.
Microsoft slipped 0.05% to $367.75 per share. Since November 17, 2021, Apple’s market value has been higher than Microsoft’s, and since November 22, 2021, the market value of the two companies has not been so close. Microsoft is getting closer to regaining the title of the most valuable company in the United States.
TSMC ADR (TSM-US) edged up 0.48% to $99.61 per share. China’s Huawei launched a new laptop “Qingyun L540” last month. Bloomberg News commissioned a Canadian research company to dismantle a Qingyun L540 and found that the processor “Kirin 9006C” used inside was packaged by TSMC around the third quarter of 2020. of 5nm wafers.
Tesla (TSLA-US) closed 0.18% lower at $237.49 per share. China’s State Administration for Market Regulation said that due to problems with automatic auxiliary steering and door lock control, Tesla will recall some imported Model S and Model S models with production dates between August 26, 2014 and December 20, 2023. X, Model 3 and domestic Model 3 and Model Y electric vehicles, a total of 1.6101 million electric vehicles.
Carrefour SA (CRRFY-US) fell 0.8% to $3.7 per share. Pepsi-Cola (PEP-US) fell 1.48% to $168.94 per share. France’s Carrefour announced that it would no longer sell several products of the “Pepsi” group, including soda Pepsi, 7up, etc., because the prices of Pepsi’s products are too high. “We have been in discussions with Carrefour for several months and will continue to work together in good faith to ensure supply of our products,” PepsiCo said in a statement.
Economic data
- The United States reported 216,000 new non-farm jobs in December, compared with 173,000 expected and the previous value of 173,000.
- The U.S. unemployment rate in December was 3.7%, expected to be 3.8%, and the previous value was 3.7%
- The average weekly working hours in the United States in December was 34.3 hours, compared with the expected 34.4 hours, and the previous value of 34.4 hours
- The annual average hourly wage growth rate in the United States in December was 4.1%, compared with the expected 3.9% growth rate, and the revised previous value was 4.0%
- The average hourly wage growth rate in the United States in December was 0.4%, which was expected to be 0.3%, and the previous value was 0.4%
- The U.S. labor force participation rate in December reported at 62.5%, 62.8% expected, and 62.8% in the previous month
- The monthly growth rate of U.S. durable goods orders in November was revised to 5.4%, compared with the previous value of 5.4%
- The monthly growth rate of U.S. factory orders in November was 2.6%, which was expected to be 2.1%, and the previous value was -3.4%.
- The ISM non-manufacturing index in the United States in December was at 50.6, expected 52.5, and the previous value was 52.7
Wall Street Analysis
Lindsay Rosner, an analyst at Goldman Sachs Asset Management, said: “Seasonal hiring usually boosts employment data. We expect the employment data to be strong and better than expected, and the results are as expected. This number does question the market’s confidence in the interest rate cut in March, but We will have three inflation reports between now and the March meeting, and each one will be important.”
Adam Crisafulli, founder and president of Vital Knowledge, analyzed: “Strong growth in hourly wages and declining participation rates all indicate that the market is pricing in the Fed’s easing policy, which is far off target.”
“This better-than-expected report provides the Fed with enough flexibility to delay a rate cut in early 2024,” said Ian Lyngen, a strategist at BMO Capital Markets.
The figures are all updated before the deadline, please refer to the actual quotation.
2024-01-05 22:01:36
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