The war between Russia and Ukraine has entered its second week, and the two countries are negotiating once more. International oil prices continue to soar due to the war, which may affect inflation and economic growth. In addition, the United States will release the non-farm payrolls report on Friday, and the market will focus on the results of the report and observe the Federal Reserve. U.S. stocks traded mixed on Thursday (3rd). At the time of writing, the Dow Jones Industrial Average was up nearly 180 points or 0.53%, the Nasdaq Composite was up 0.07%, the S&P 500 was up 0.59%, and the Philadelphia Semiconductor Index was down 0.85%.
Representatives of Russia and Ukraine went to the border between Belarus and Poland on Thursday to start the second round of negotiations. Ukrainian negotiating member David Arakhamia said he hoped to negotiate with Russia to establish a humanitarian corridor, while Russian negotiator Desinski ( Vladimir Rostislavovich Medinsky said that Russia will make negotiation proposals to the Ukrainian side from three aspects: military technology, international humanitarian affairs and political issues.
At the time of the negotiations between Russia and Ukraine, the risk sentiment was cautious and uneasy, and commodities ranging from metals to oil and natural gas were affected. International oil prices and U.S. stocks soared before the market, but fell following the opening. West Texas crude oil fell 1.32% to a barrel by the time of writing. 109.14 DollarBrent crude fell 0.89% to 111.92 a barrel Dollargold rose 0.42% to 1,930.40 an ounce Dollar。
In addition, traders are also awaiting the February non-farm payrolls report from the U.S. Labor Bureau on Friday. Economists expect the U.S. to add 440,000 jobs in February, down from 467,000 in January. Investors want a strong job market, but not so strong that it will force the Fed to raise interest rates faster.
Powell testified before Congress a few days ago that he still believes that interest rates will be raised in the future. However, he noted that the impact of the Russian-Ukrainian conflict on the U.S. economy is “highly uncertain”, adding: “If inflation rises above or continues to rise above that level, we will be prepared to take more aggressive action at one or more meetings. , raising the federal funds rate by more than 25 basis points.” Powell will testify once more before the Senate Banking Committee at 10 a.m. ET on Thursday.
As of 22:00 on Thursday (3rd) Taipei time:
The Dow Jones Industrial Average rose 260.85 points, or 0.77%, to 35,152.20
The Nasdaq Composite added 9.62 points, or 0.07%, to settle at 13,761.64
The S&P 500 rose 25.78 points, or 0.59%, to trade at 4,412.32
Feihan fell 29.03 points or 0.85% to 3,387.13
TSMC ADR fell 1.12% to 108.38 per share Dollar
10-year U.S. Treasury yield rises to 1.8800%
NY Light crude fell 1.32% to 109.14 a barrel Dollar
Brent crude fell 0.89% to 111.92 a barrel Dollar
Gold rose 0.42% to 1,930.40 an ounce Dollar
DollarIndex fell to 97.60
Stocks in focus:
Snowflake(SNOW-US) fell 12.71% to 231.04 per share in early trade Dollar
Data analytics software company Snowflake reports fiscal fourth-quarter 2022 earnings despite a 101% increase in revenue last quarter to $383.8 millionDollarbetter than the market estimate of 372.6 millionDollarbut it was the lowest increase since 2019, and due to the decline in third-party cloud infrastructure service fees, the adjusted gross profit margin was 70%, lower than the market estimate of 70.9, but the net loss was 199 million compared with the same period last year.Dollarnarrowed to 132 millionDollar。
Looking ahead, Snowflake estimates that the annual revenue growth rate in the first quarter of fiscal year 2023 will be between 79% and 81%, compared with the market expectation of 78%. The average expectation was 66%.
Kroger(KR-US) rose 9.52% to 54.07 per share in early trade Dollar
Grocer Kroger reports $33.05 billion in fourth-quarter revenueDollarAdjusted earnings per share reported 0.91 Dollarboth better than market estimates of 32.86 billion and 0.74 Dollar. The stock was previously favored by analysts at Telsey Advisory Group, who upgraded the stock from “Market Perform” to “Outperform” and increased its target price from 47 per share. DollarRaised to 54 per share Dollar. Analysts said the company’s prospects for expanding business cooperation and expanding sales channels and online businesses are promising.
Best Buy (BBY-US) rose 7.93% to 108.83 per share in early trade Dollar
Best Buy reports $16.37 billion in revenue despite lackluster fourth-quarter earningsDollarearnings per share reported 2.73 Dollarboth slightly lower than market estimates of 16.74 billion and 2.77 billion Dollarbut the company announced a 26% increase in its quarterly dividend.
Today’s key economic data:
- The number of people receiving unemployment benefits in the United States last week reported 215,000, an estimate of 225,000, and the previous value of 232,000
- The US February ISM non-manufacturing index reported 56.6, expected to be 60.9, and the previous value of 59.9
- The final value of the US Markit services PMI in February was 56.5, the forecast was 56.7, and the previous value was 56.7
- The final U.S. Markit composite PMI in February was at 55.9, expected to be 56, and the previous value of 56
- The final monthly growth rate of U.S. durable goods orders in January was 1.6%, expected to be 1.6%, and the previous value of 1.6%
- The monthly growth rate of U.S. factory orders in January was 1.4%, compared with an estimated 1.6% and the previous value of 1.6%
Wall Street Analysis:
Citi strategists William O’Donnell and Edward Acton said Powell managed to calm risky markets by ruling out a 50 basis point rate hike in March, while pledging to remain wary of inflation at a subsequent monetary policy meeting.
Nancy Davis, chief investment officer at Quadratic Capital Management, said it’s really time for investors to brace for more volatility, especially in the bond market, because the Fed hasn’t started shrinking its balance sheet.
