U.S. non-farm wages slightly exceeded market expectations in August, but slowing wage growth and a rise in the unemployment rate eased some concerns about inflation and the Federal Reserve’s likely next move to sharply raise interest rates US equities opened higher on Friday (2nd).
Before the deadline,Industrial average of the Dow Jonesincreased by more than 100 points or 0.41%,Nasdaq Composite Indexup to 20 points or 0.17%,S&P 500 Indexincreased by almost 0.5%,Semiconductor of PhiladelphiaThe index was up by almost 0.4%.
Nonfarm payrolls in the United States registered 315,000 in August, slightly above market expectations of 300,000, but far below the revised pre-value of 526,000, and wage growth also declined last month, along with the August’s unemployment rate was trading at 3.7%, beating market expectations by 3.5% and up from 3.5% in July.
Combined with the recently released ADP report known as the “small non-farm farmer,” the US labor market may have cooled. The data showed that ADP employment in the United States increased by 132,000 in August, far below the expected 300,000 and 270,000 in July.
Following the release of the data, two-year U.S. bond yields fell from 14-year highs, dropping about 6 basis points to 3.463%, mainly because the August non-farm wage report was close to expectations, mitigating the labor market warming by the market will force the Federal Reserve (Fed). ) to continue to drastically raise interest rates to curb inflation concerns, while the United States 10-Year Treasury YieldStable at 3.271 percent, the 30-year yield was up 3 basis points to 3.404 percent.
However, some market analysts pointed out that the employment report did not change the trader’s path to the Fed to dramatically raise interest rates. Because a series of reports this week, including the Conference Board’s August Consumer Confidence Index, July’s JOLTs Job Openings, and the August ISM Production Index, all confirm the Fed’s claim that the US economy is strong enough to withstand greater policy tightening.
Global bond markets plunged into a bear market for the first time in more than 30 years as rising inflation forced central banks to rapidly raise interest rates. The Bloomberg Global Aggregate Total Return Index, which tracks Treasuries and investment grade corporate bonds, has recovered more than 20% from its January high, the largest decline since the index was launched in 1990.
In terms of individual shares, Berkshire Hathaway, a subsidiary of Warren Buffett, recently sold BYD (002594-CN) (1211-HK) 1.716 million shares, and the holding ratio fell from 19.02% to 18.87%. It was sold again in less than a month after BYD’s first share sale on Aug.24.
In other news, according to foreign media reports, the finance ministers of the Group of Seven (G7) countries reached a consensus today to set a price cap for Russian oil, on the one hand, limiting the Kremlin’s ability to finance the Russian- Ukrainian war, on the other hand, to control the surge in oil prices, energy prices. Before the deadline, international oil prices rose by nearly 3%.
Starting at 9pm on Friday (2nd) Taipei time:
Featured titles:
Lulemone (LULU-US) rose 10.21% to $ 324.50 per share at the start of the trade
High-priced yoga and sportswear giant Lululemon posted strong earnings last quarter, with revenues up 29% to $ 1.9 billion and adjusted earnings per share of $ 2.2, both beating market expectations of $ 1.774 billion and $ 1.9 billion, $ 1.87.
Furthermore, the company is also optimistic about its future operational outlook and raised its financial forecasts. Annual revenue is estimated to be between US $ 7.865 and 7.94 billion, which is higher than the analyst’s estimate of 7.7. billions of US dollars. Better than market expectations of $ 9.44.
Broadcom (AVGO-USA) rose 2.84% to $ 506 per share at the start of the trade
Revenue of chip maker Broadcom increased 25% to $ 8.464 billion last quarter, beating consensus estimates of $ 8.41 billion, while adjusted earnings per share were reported at $ 9.73. even exceeding expectations of $ 9.57. The company’s future financial outlook is also quite bright, with fourth quarter revenue expected to rise by 20% to US $ 8.9 billion, higher than the US $ 8.72 billion forecast.
Bathroom bed and beyond (BBBY-US) fell 5.08% to $ 8.27 per share at the start of the trade
US home goods retailer Bed Bath & Beyond fell nearly 6% in pre-market trading, on track for a fourth consecutive losing session. Bed Bath & Beyond’s announcement on Wednesday of a series of measures to strengthen the company’s financial health does not appear to have been favored by investors.
The main economic data today:
- Non-agricultural employment reported 315,000, expected 300,000, the previous value has been revised down from 528,000 to 526,000
- Unemployment rate at 3.7%, expected 3.5%, previous value 3.5%
- Average weekly hours worked 34.5 hours, forecast 34.6 hours, previous value 34.6 hours
- The average growth rate of hourly wages was brought back to 5.2%, expected to be 5.3%, the previous value of 5.2%
- The monthly growth rate of the average hourly wage was brought back to 0.5%, expected to be 0.4% and the previous value was 0.5%
- The labor force participation rate was brought back to 62.4%, predicted to be 62.2% and the previous value was 62.1%
- US Durable Goods Orders in July Revised Monthly Rate of -0.1%, Expected 0%, Previous Value of 0%
- July US factory order monthly rate reported -1.0%, expected 0.2%, the previous value of 2%
Wall Street Analysis:
Meera Pandit, global market strategist at JPMorgan Asset Management, said there is not much reason to be bullish in a bearish environment in the weeks and months ahead. However, these are levels that can pay off in the long run when considering the long-term outlook and longer-term investors.
Fears that rising interest rates will hurt economic growth weighed on markets, prompting the Bloomberg Global Total Return Index, which measures government and investment grade corporate bonds, to fall more than 20% from the 2021 peak. Giles Coghlan, chief foreign exchange analyst at HYCM, said the market is heavily focused on how much the Fed will take in the rate hike cycle. The three current market priorities are: China’s economic slowdown,EURRegional recession and the Fed’s hawkish stance.
Jim Solloway, senior market strategist at SEI, said that while higher interest rates can be painful for short-term bondholders, all things considered, higher yields will ultimately mean higher incomes and nominal yields.
Richard Flynn, UK chief executive at Charles Schwab Corporation, said the unemployment rate remained relatively low in August, but this is likely due to low labor force participation rather than a booming economy. He also said that investors will notice that the employment report is a lagging indicator that tends to be strong when entering a recession. Indeed, broader economic indicators have weakened recently.
–
