After the US Federal Reserve (Fed) Chairman Jerome Powell released a dove a few days ago, the economic data came once more with good news of cooling inflation. The US stock market was mixed on Thursday (1st) amid speculation that the Fed will slow down the pace of interest rate hikes soon.
before the deadline,Dow Jones Industrial Averagefell more than 40 points or 0.12%,Nasdaq Composite Indexup nearly 0.5 percent,S&P 500 Indexup nearly 0.4%,Philadelphia SemiconductorThe index rose nearly 0.1 percent.
Fed Chairman Jerome Powell released a dove yesterday, saying that the pace of interest rate hikes may be slowed down as soon as December, before the US stock market openedS&P 500 Indexfutures,Nasdaq 100 index futures were higher. However, Powell still emphasized the importance of fighting inflation, and the Fed’s task has not yet been completed. Amid buoyant market sentiment, U.S. Treasury yields,dollar indexIt continued to weaken, falling to 3.6% and 104.92 respectively before the deadline.
In addition to the Fed is expected to slowly raise interest rates next month, there is also good news from economic data. Following the cooling of the U.S. consumer price index (CPI) in October, the October PCE price index announced on Thursday increased by 6%, in line with market expectations. But it was down from a revised 6.2 percent, the fourth straight monthly decline.
Among them, the core PCE, the inflation indicator preferred by the Fed, increased by 5% year-on-year, which was in line with expectations, and fell from the previous value of 5.1%. On a monthly basis, it grew by 0.2%, which was lower than the expected 0.3%, and fell sharply from the previous value of 0.5%, allowing the Fed to release The slow pace of interest rate hikes has room to breathe.
In terms of the labor market, the U.S. Department of Labor released the latest unemployment benefits data on Thursday (1st). The adjusted number of initial jobless claims reported last week was 225,000, a decrease of 16,000 from the revised previous value of 241,000, which was lower than market expectations. 235,000 people. However, the number of people continuing to receive unemployment benefits rose to 1.6 million, the highest level since February, suggesting that unemployed Americans are having a harder time finding new jobs in a cooling job market.
On the other hand, there are signs that slowing economic growth is weighing on U.S. corporate earnings. Before the U.S. stock market opened, software maker Salesforce (CRM-US) shares tumbled more than 7% following the company’s fourth earnings report reflected the impact of a softening economic environment, while off-price store chain Dollar General (DG-US) also slumped more than 5% following it lowered its full-year profit forecast in its earnings report before the market.
As of 22:00 on Thursday (1st) Taipei time:
Focus stocks:
Kroger (KR-US) rose 0.24% to $49.31 a share in early trade
Supermarket operator Kroger’s better-than-expected quarterly results and raised its full-year forecast sent its shares up nearly 7 percent in premarket trading. According to the financial report, the company’s revenue in the last quarter was US$34.2 billion, and its adjusted profit per share was US$0.88, both of which were better than analysts’ expectations of US$33.96 billion and US$0.82. In addition, same-store sales grew by 6.9%, far better than analysts’ expectations. 4%. Kroger forecast full-year adjusted profit per share of $4.05 to $4.15, compared with a previous forecast of $3.95 to $4.05.
Snowflake(SNOW-US) rose 2.46 percent to $146.41 a share in early trade
Software start-up Snowflake’s third-quarter earnings report outperformed expectations, with revenue up 67% to $557 million, beating analysts’ estimates of $539 million, and adjusted earnings per share of $0.11, better than analysts The division expected $ 0.04. But the company’s forecast spooked Wall Street analysts, predicting fourth-quarter product revenue of $535 million to $540 million, well below StreetAccount analysts’ forecast of $553 million.
Costco (COST-US) fell 6.82% in early trade to $502.50 per share
Shares of Costco fell more than 3% premarket following the company reported sales for November that showed its online sales fell more than 10%. Costco’s e-commerce performance has been a bright spot during the COVID-19 pandemic.
Today’s key economic data:
- The number of people claiming unemployment benefits in the United States reported 225,000 last week, compared with 235,000 expected and 241,000 previously
- The number of Americans continuing to receive unemployment benefits last week was reported at 1.608 million, expected to be 1.573 million, and the previous value was 1.551 million
- The PCE price index in the United States reported an annual rate of 6% in October, expected to be 6%, and the previous value to be 6.3%
- U.S. October PCE price index monthly rate reported 0.3%, expected 0.6%, previous value 0.3%
- The core PCE price index in the United States reported an annual rate of 5% in October, which was expected to be 5% and the previous value was 5.2%
- The core PCE price index in the United States in October was reported at 0.2%, expected 0.3%, and the previous value was 0.5%
- U.S. November ISM manufacturing index is expected to be 49.8, the previous value is 50.2
- The final value of the U.S. manufacturing PMI in November is expected to be 47.5, the previous value is 47.6
- U.S. personal spending increased by 0.8% in October, expected to be 0.8%, and the previous value was 0.6%
- U.S. personal income increased by 0.7% in October, expected to be 0.4%, and the previous value was 0.4%
- U.S. real personal consumption increased by 0.5% in October, the previous value was 0.3%
Wall Street Analysis:
Sarah Hewin, a senior economist at Standard Chartered Bank in London, said that the one-way bet on the strengthening of the US dollar no longer exists. Powell spoke a few days ago to put doves, and the market lowered expectations for the peak of the end of next year’s interest rate.
JPMorgan strategists said the possibility of a recession next year will hit U.S. stocks, forecasting a 9 percent decline in corporate earnings, and that positive growth factors this year may not last into next year.