The number of jobless claims in the United States last week revealed signs of cooling in the labor market, which is one of the key factors for Federal Reserve (Fed) officials to decide whether they can end their aggressive tightening policies. The market bet on the Fed’s policy shift. The index opened higher.
before the deadline,Dow Jones Industrial Averagerose nearly 150 points or nearly 0.4%,NasdaqThe composite index rose 0.13%,S&P 500 Indexup nearly 0.3%,Philadelphia SemiconductorThe index rose 0.11%.
Although the Fed maintained a hawkish stance and caused U.S. stocks to fall one after another, the initial jobless claims data released before the U.S. stock market opened revealed that the job market has cooled, and the U.S. stock futures index increased.Dow Jones IndexFutures rose more than 0.4%,S&P 500 IndexFutures rose nearly 0.6%,Nasdaq 100 futures rose more than 0.5%.
The U.S. Department of Labor announced the latest unemployment benefits data. Last week, the adjusted number of initial jobless claims reported 230,000, an increase of 4,000 from the revised previous value of 226,000. This was in line with market expectations. Continuing unemployment benefits continued to far exceed expectations, a record high this year. It was the highest level since early February, suggesting that unemployed Americans are having a harder time finding new jobs as the labor market shows tentative signs of cooling.
Separately, U.S. 10-Year Treasury Bond YieldIt fell to a near 3-month low at one point, but then turned up, rising to 3.48% by the time of writing,dollar indexIt fell to 105.01.
Traders are currently waiting for the upcoming U.S. November producer price index (PPI) report on Friday (9th), the December consumer confidence index from the University of Michigan, and next week’s heavy inflation data-November consumption Consumer Price Index (CPI), on the one hand to understand the effect of Fed policy in controlling inflation, on the other hand, also looking for clues on whether the Fed may slow down its aggressive interest rate hikes.
At present, the market predicts that the PPI in November will rise by 7.2% year-on-year, the previous value is 8%, the core PPI will rise by 5.9% year-on-year, the previous value is 6.7%, and the consumer confidence index of the University of Michigan in December is estimated at 56.9, and the previous value is 56.8.
Strategists from Morgan Stanley to JPMorgan Chase & Co have warned investors not to put their money back into risky assets on the back of an imminent shift to easy monetary policy from the Fed. JP Morgan analysts believe that it is too early to say the Fed’s monetary policy shift.
As of 22:00 on Thursday (8th) Taipei time:
Focus stocks:
Tesla (TSLA-US) fell 1.55 percent to $171.34 a share in early trade
According to data from the China Passenger Car Association (CPCA), Tesla’s sales in China in November fell by 12.85% to 62,493 vehicles. Another report pointed out that Tesla will shorten the production shift of the Shanghai plant as soon as next Monday (12th) and delay the registration time of some new employees. This further reveals that the demand for Tesla’s electric vehicles in the Chinese market has not reached expected.
Intel (INTC-US) fell 0.25 percent to $28.26 a share in early trade
The layoffs and expenditure reduction measures announced by Intel executives have been launched in California, including the expected layoffs of hundreds of employees by the end of next month. Intel also suggested that employees in the global manufacturing department take unpaid leave. Intel sent a letter to the California Employment Development Bureau, announcing that it will lay off 111 people in Folsom and 90 people in Santa Clara, where the headquarters is located. The layoffs are permanent and are scheduled to take effect on January 31.
GameStop(GME-US) rose 0.71 percent to $22.42 a share in early trade
GameStop’s financial report last quarter was dismal, with revenue falling short of expectations and losses far exceeding expectations. The company’s chief executive, Matt Furlong, said the company had made the necessary investments and would spend wisely going forward.
Today’s key economic data:
- The number of Americans claiming unemployment benefits at the beginning of last week reported 230,000, 230,000 expected, and 226,000 before the revision
- The number of people continuing to receive unemployment benefits in the United States last week was reported at 1.671 million, expected to be 1.6 million, and the previous value was revised to 1.609 million
Wall Street Analysis:
Marios Hadjikyriacos, an analyst at brokerage XM, said the deepening inversion of the U.S. bond yield curve showed that, in the eyes of investors, the risk of a recession had begun to overshadow inflation.
Rich Weiss, director of multi-asset investment at American Century Investment Management, is not surprised by the recent decline in US stocks. would kill any rebound in the stock market.