The U.S. non-agricultural employment data in December last year exceeded expectations, but the signal of wage growth cooling cheered the market. U.S. stocks rebounded strongly on Friday (6th), Apple led the counterattack of technology stocks, and Tesla staged a gorgeous reversal show. % recovered all the lost ground, closing up more than 2.4%.
The four major indexes closed higher,Dow JonesSoaring more than 700 points, the S & P rose more than 2%, the best since November 30 last year,fee halfSoared more than 4.6%,That fingerIt rebounded strongly by more than 2.5 percent, its biggest one-day gain since December 29 last year.
The main US stock index achieved good results in the first week of this year,Dow Jonesand the S&P rose 1.5% for the week.That fingerWeekly gains of 1%.
In terms of data, data from the U.S. Department of Labor on Friday showed that the number of non-farm payrolls in the U.S. increased by 223,000 in December last year, higher than market forecasts, the unemployment rate fell to 3.5%, and average hourly wages increased by 4.6% annually, showing strong growth in the job market , but wage increases were lower than expected.
However, the U.S. service industry will unexpectedly shrink by the end of 2022. Data from the Institute for Supply Management (ISM) on Thursday showed that the U.S. ISM non-manufacturing index fell to 49.6 in December, the lowest since May 2020.
In terms of political and economic news, Wall Street Journal reporter Nick Timiraos, who is recognized by the market as the “Fed microphone”, commented that compared with the November report, the average hourly wage data paints a slightly less worrisome picture for the Fed. picture.
Traders tend to think that the Federal Reserve will raise interest rates by 1 yard next month. According to CME’s FedWatch tool, the Fed will raise interest rates by 1 yard in February and maintain the terminal interest rate at slightly below 5% until June. sex up to 75%.
The election of the speaker of the US House of Representatives has become a protracted contest. Before the deadline, Republican leader Kevin McCarthy (Kevin McCarthy) had won some key Republican votes in the 13th round of voting, but still fell short of the 218 votes required to be elected.
The novel coronavirus pneumonia (COVID-19) global epidemic continues to spread. Before the deadline, the Johns Hopkins University (Johns Hopkins University) data pointed out that the number of confirmed cases worldwide has exceeded 664 million, and the number of deaths has exceeded 6.7 million. More than 12.7 billion doses of vaccines have been administered in 184 countries around the world.
The performance of the four major US stock indexes on Friday (6th):
- US stocksDow Jones IndexIt rose 700.53 points, or 2.13 percent, to close at 33,630.61.
- NasdaqThe index rose 264.05 points, or 2.56 percent, to close at 10,569.29.
- S&P 500 IndexIt gained 86.98 points, or 2.28 percent, to close at 3,895.08.
- Philadelphia SemiconductorThe index rose 117.58 points, or 4.67%, to close at 2,636.10 points.
Focus stocks
The five kings of science and technology went hand in hand. apple (AAPL-US) rose 3.68%; Alphabet (GOOGL-US) rose 1.32%; Microsoft (MSFT-US) up 1.18%; Meta (META-US) rose 2.43%; Amazon (AMZN-US) rose 3.56%.
Dow JonesConstituent stocks shot up collectively. Walgreens Boots (WBA-US) surged 4.04%; Dow Chemical (DOW-US) rose 3.99%; Boeing (BA-US) rose 3.91%; Kintor Heavy Industry (CAT-US) up 3.57%; Traveler (TRV-US) rose 3.37%.
fee halfConstituent stocks were on a roll. Micron (MU-US) rose 3.77%; NVIDIA (NVDA-US) surged 4.16%; Applied Materials (AMAT-US) soared 6.48%; Texas Instruments (TXN-US) soared 4.93%; Intel (INTC-US) soared 4.25%; Qualcomm (QCOM-US) surged 5.43%; AMD (AMD-US) rose 2.62%.
Taiwan stock ADR closed in red across the board. TSMC ADR (TSM-US) rose 3.09%; ASE ADR (ASX-US) up 4.04%; UMC ADR (UMC-US) soared 6.22%; Chunghwa Telecom ADR (CHT US) rose 1.40%.
Corporate News
apple (AAPL-US) surged 3.68% to US$129.62 per share on Friday, and its market value reached US$2.06 trillion, returning to the “US$2 trillion club”.
The price of all Tesla electric vehicles has been greatly reduced, and Tesla (TSLA-US) fell more than 7% before the market on Friday, and once plunged more than 7% following the market opened. However, as bargain hunters rushed in during the session, its stock price closed more than 2% higher at $113.06 per share.
In late Friday trading hours, the U.S. Food and Drug Administration (FDA) announced the approval of Japanese pharmaceutical company Eisai (4523-JP) and US pharmaceutical company Biogen (Biogen) (BIIB-US) jointly developed the Alzheimer’s drug “Lecanemab”. Biogen received a dividend of 2.82% to US$279.25 per share following hearing the news.
American home furnishings retailer Bed Bath & Beyond (BBBY-US) continued to fall by 22.49% to US$1.31 per share. Bed Bath & Beyond warned of growing losses and financial problems, announcing plans to close 150 stores across the country and may file for bankruptcy within weeks.
Cisco (CSCO-US) rose 3.07% to $48.32 per share. Cisco has begun announcing layoffs, laying off nearly 700 people in Silicon Valley last month.
McDonald’s (MCD-US) closed up 2.79 percent at US$ per share. McDonald’s is planning to accelerate the pace of new restaurant openings while implementing a cost-cutting program.
Economic data
- U.S. non-agricultural employment reported 223,000 in December, 200,000 expected, 256,000 previously revised
- U.S. unemployment rate reported at 3.5% in December, 3.7% expected, 3.6% previously
- The average weekly working hours in the United States in December was 34.3 hours, expected 34.4 hours, and the previous value was 34.4 hours
- U.S. average hourly wages rose 4.6% in December, vs. 5.0% expected and 4.8% previously
- U.S. average hourly wages rose 0.3% in December, compared with 0.4% expected and 0.4% previously
- U.S. December labor force participation rate reported at 62.3%, expected 62.2%, previous value 62.2%
- The revised monthly rate of US durable goods orders in November reported – 2.1%, expected – 2.1%, and the previous value – 2.1%
- U.S. factory orders in November reported -1.8%, expected -0.8%, previous value 1%
- U.S. December ISM non-manufacturing index reported 49.6, expected 55, previous value 56.5
Wall Street Analysis
Wall Street believes that some recent data and a wave of technology and financial layoffs suggest that the U.S. labor market, while still vibrant, may be starting to lose steam.
Michael Arone, investment strategist at State Street Global Advisors, said: “All investors care regarding is that the data shows that inflation is moving towards the Fed’s target. That’s all investors care regarding. Average hourly earnings show that inflation is slowing down. They’re excited regarding it.”
Mike Loewengart, an analyst at Morgan Stanley’s Global Investment Office, said investors were comforted by emerging signs that Fed policy was working because it suggested the central bank didn’t have to become more “hawkish” than it has been.
However, Bloomberg Intelligence analyst Heather Burke warned: “The median estimate of the change in non-farm payrolls is 202,000, compared to the previous estimate of 263,000, and the unemployment rate will hold steady at 3.7%. The rate will soar to 4.6%. Until then, demand and supply will not be in line, which will force the Fed to maintain a hawkish stance, and there is still no chance to turn around.”
Seema Shah, chief global strategist at Principal Asset Management, noted: “Indeed, expectations for a soft landing for the economy may have been boosted in light of the non-farm payrolls report, however, with unemployment back at a record low of 3.5%, expectations for wage growth How realistic is a big drop? The Fed may be skeptical.”
Shah expects: “Achieving record low unemployment shows the Fed has a lot of work to do, with policy rates set to rise above 5% in just a few months, and a hard landing looks like the most likely outcome this year .The recession clock is ticking.”
The numbers are all updated before the deadline, please refer to the actual quotation
