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NEW YORK (dpa-AFX) – The monthly US job market report should set the direction for the US stock exchanges on Friday. In the run-up to the investors also held themselves for the monetary policy the Fed’s significant release. After the price rally the day before, broker IG assessed the leading index Dow Jones Industrial (Dow Jones 30 Industrial) around half a percent lower to 33,076 points. The technology stock-heavy NASDAQ 100 was expected to be a good one percent lower.
On the previous day, weak labor market data from the private sector, among other things, had caused a strong recovery rally on Wall Street, which was gripped by fears of inflation and recession. Many investors are currently concerned that the US Federal Reserve could take even tougher interest rate hikes given the extreme rates of inflation. At the same time, the Fed is also keeping a close eye on the labor market in its policy – the weak data was therefore seen as welcome evidence of a constant monetary policy.
The market is currently expecting a slowdown in job creation in the USA. Whether the current labor market data could actually tip the scales for the Fed to reconsider its monetary policy is disputed even among experts. For Jeffrey Halley of broker Oanda, however, a stronger market reaction is almost certain if the numbers deviate significantly from market expectations, either up or down: “A high number means a tightening by the Fed with many hikes by 0.50 percentage points and the sale of shares , a low number represents less tightening, which is why stocks should be in demand as a result.”
The data on the mood of American purchasing managers will also be published on the same day as the labor market report. The economic warning from the Tesla boss should not completely ignore the trade Elon Musk“, noted market observer Andreas Lipkow from Comdirect.
According to a media report, an internal email became known on Friday in which the head of the electric car manufacturer expressed concern about the current economic situation and also considered further job cuts in the group to be necessary. Musk also asked all Tesla employees to return from their home office for at least 40 hours a week or to leave the company. In pre-exchange trading, these statements were not well received by the Brsians. Tesla shares, which were still strong the day before, slipped by five percent in pre-market trading.
Shares in Wall Street-listed Canadian sportswear retailer Lululemon rose only moderately despite an upgraded forecast. Analysts at Goldman Sachs and Credit Suisse (Credit Suisse (CS)) praised the figures, but lowered their share price targets due to a lower industry rating.
Meanwhile, skeptical statements by experts at Morgan Stanley regarding the quarterly outlook for Apple’s service business could weigh on the iPhone maker’s shares.
The papers of the cybersecurity company Crowdstrike should also be worth a look after quarterly figures, which the market had rated as strong. The offer by the pharmaceutical company Bristol-Myers Squibb, which wants to take over the cancer specialist Turning Point and is offering 76 dollars per share, caused a price firework. The share has already more than doubled in pre-market trading, but is still slightly below the offer price
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