US Federal Reserve (Fed) Chairman Jerome Powell will give a speech later in the day. The market will be paying close attention to the content of the speech and looking for signs of a slowdown in the Fed’s rate hikes. Major stock indexes on Wednesday Americans opened flat. (30°).
before the deadline,Dow Jones Industrial Averagefell nearly 50 points or 0.15%,Nasdaq Composite Index+0.4%,S&P 500 indexup nearly 0.1%,Semiconductor PhiladelphiaThe index rose more than 0.4%.
Prior to the opening of the US stock market, ADP employment data, known as “small nonfarm industry”, was released, the results showed that the job market had cooled, giving market hopes that the Fed would The pace of interest rate hikes slowed and the US stock index soared. The number of new US jobs fell from 239,000 in October to 127,000 in November, well below market expectations of 200,000, the lowest since January, according to the report released by ADP.
ADP Chief Economist Nela Richardson said tipping points in the labor market may be hard to capture, but data suggests the Fed’s tightening policies are having an impact on job creation and growth of wages. In addition, the number of company resignations is also decreasing and the post-epidemic recovery is stabilizing.
In addition, the US Department of Commerce’s Bureau of Economic Analysis (BEA) released data on the same day that the quarterly growth rate of US real gross domestic product (GDP) in the third quarter was revised to 2 .9%, an increase of 0.3 percentage points from the initial value, higher than expectations of 2.8%. Meanwhile, the personal consumption expenditure (PCE) price index, a key gauge of inflation, rose by a revised 4.6% in the third quarter, beating expectations for a 4.5% rise, but lower than the previous reading of 4.7%.
Investor expectations for a slower Fed rate hikes and growing optimism about China’s reopening weighed on the dollar, putting it on track for its worst month since 2010. Another US 10-year Treasury bill yieldIt’s down more than 25 basis points since November.
However, traders remained cautious ahead of Powell’s comments as global inflation remains high. Powell is widely expected to suggest that the next rate hike will slow to 2 yards (50 basis points), but he could also warn that policy tightening will go a step further.
In other news, data released by Eurostat proved itEURThe initial value of the harmonized index of consumer prices (CPI) in the region increased by 10% in November, below market expectations of 10.4%, down from 10.6% the previous month, and the decline largest since 2020. interest rate hikes provide breathing space.
Starting at 22:00 on Wednesday (30) Taipei Time:
Focus on actions:
Xpeng motors (XPEV-USA) rose 22.21% to $8.97 a share in early trading
Xiaopeng Motors, one of China’s new automakers, announced its third-quarter financial report ahead of the market. Due to the impact of China’s new corona epidemic and lockdown measures on automobile production and sales, although revenue increased by almost 20%, still fell below market expectations and losses increased by almost 20%. 50% was well below expectations.
At the same time, Xiaopeng Motors also gave a bleak financial forecast: auto delivery in the fourth quarter is expected to be only between 20,000 and 21,000 vehicles, an annual decline of about 49.7% to 52.1%, which is lower than It is also the company’s fourth consecutive year, and quarterly deliveries are down. However, the dismal financial report and gloomy financial outlook did not appear to have affected Xiaopeng Motors’ ADR rally, which was up nearly 10% ahead of the market.
Airbnb(ABNB-US) rose 1.60% to $96.91 a share in early trading
Accommodation platform Airbnb is working with several major real estate and management firms to list designated buildings that allow tenants to offer short-term sublets on the site. The company said it will offer a new page on its website listing so-called Airbnb-friendly buildings, which will give tenants the ability to host their apartments just like homeowners.
HPE technologies (HPE-USA) rose 0.84% to $15.59 a share in early trading
Hewlett Packard Enterprise Company (Hewlett Packard Enterprise Company) benefited from growth in its cloud and AI businesses, and its fourth-quarter earnings exceeded expectations. The company’s revenues increased 7% to $7.871 billion in the recent quarter, beating expectations by $7.43 billion, and adjusted earnings per share were $0.57, beating expectations by 0. $.56.
HPE also reiterated its earlier full-year forecast of up to $2.04 in adjusted earnings per share and up to $2.1 billion in free cash flow. The company also said it will spend at least $500 million on share buybacks this fiscal year. The company also said it was a bit premature to update its full-year guidance as supply chain and currency volatility continued to be headwinds, and indicated it did not currently have any layoffs planned.
Today’s key economic data:
- US ADP reports 127,000 new jobs in November, up from 200,000 expected and 239,000 prior
- US Q3 Quarterly GDP Growth Rate Revised 2.9%, Expected 2.7%, Previous Value 2.6%
- US consumer spending grew at a revised annual rate of 1.7% in the third quarter, versus 1.4% expected and 2% prior
- In the third quarter of the United States, the quarterly growth rate of the core PCE price index was revised to 4.6%, expected at 4.5%, and the previous value was 4.7%
- US Bulk Inventory Initial Monthly Rate in October Reverted to 0.8%, 0.5% Expected, and Prior to 0.6%
Wall Street Analysis:
Kenneth Broux, a strategist at Societe Generale, said the market focused on Fed Chairman Jerome Powell’s speech. If the content shows a dovish stance, it would be an unexpected outcome. Some believe the federal funds rate will peak at 5%, but Powell may have poured cold water on that expectation in his speech.
James Athey, chief investment officer at Abrdn, said the market would like to see good news from a moderate change in China’s stance on the lockdown, but the reality is that a full reopening will take some time and be politically difficult to execute.
