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Wall Street: between the closing of corporate balance sheets and employment results, the keys to the market

Wall Street: between the closing of corporate balance sheets and employment results, the keys to the market

Investors focus their attention on the employment report corresponding to the month of January, which will be published during the day, in search of signs about possible future direction of the Federal Reserve interest rates.

Meanwhile, this Friday closes the week of presentation of quarterly company results, sWith the large-cap technology sector a key determinant of confidence, while the oil market is on track to close the week with heavy losses.

Below are the keys to the financial market:

  • Focus on January Employment Report

The monthly employment report, of great impact, will be released today and will offer a guide to the health of the US labor market, potentially influencing the Federal Reserve’s decision on interest rate cuts. The US economy is expected to have generated 187,000 new jobs in Januarycompared to 216,000 the previous month, while the unemployment rate could rise from 3.7% to 3.8%.

This event follows a surprising increase in jobless claims and a weaker private sector employment report. A decrease in these requests could indicate that the rate cuts applied by the Federal Reserve from 2022 are beginning to take effect, reviving the possibility of additional cuts in March.

Traders have been adjusting expectations about the timing of U.S. rate cuts this year, and new signs of weakening in the labor market. could support the current projection of more than 140 points cutting basics for the end of the year.

  • Mixed futures awaiting employment report

Ahead of key jobs data, US stock futures trade mostly higher this Friday. The index Technology’s Nasdaq could post outstanding performance After the solid results of Meta Platforms and Amazon after Thursday’s close.

In this context, Dow futures barely register any changes, lS&P 500 futures are up 25 points or 0.5%, and Nasdaq 100 futures are up 165 points or 1%.

The three main indices closed on Thursday with gains close to 1%, recovering from losses following the Federal Reserve’s decision, with the additional boost of better-than-expected quarterly results overall.

Investors should process key economic data this Friday, including the monthly jobs report, as quarterly reports continue from companies including Chevron, Exxon Mobil, Bristol-Myers Squibb and AbbVie.

Meta and Amazon stand out; Apple disappoints

Three large-cap technology and growth giants that drove the market last year reported results after the close on Thursday, with divergent reactions.

The actions of Meta Platforms and Amazon experienced a sharp rise, adding $280 billion in market value after impressing investors with its quarterly results. Meanwhile, Apple’s market value fell by $70 billion following its results.

Meta posted a 25% increase in revenue last quarter, driven by strong advertising and device sales, and announced its first dividend. Amazon lived up to expectations, with satisfactory cloud growth and a significant increase in online spending during the holiday season.

By contrast, Apple forecast a drop in iPhone sales and projected global revenue $6 billion below expectations, signaling a loss of ground in the crucial Chinese market.

Nvidia reports an increase in January

Optimism about the impact of artificial intelligence in the companies’ results was reflected in the demand for Nvidia shares during January.

Nvidia.jpg

The world’s most valuable chipmaker saw its market value reach a record $1.52 trillion, surpassing the $296.52 billion recorded in May 2023. Nvidia dominates the market for advanced artificial intelligence chips and plans to start mass production of an AI chip designed for Chinese customers later this year, complying with strict US export regulations.

Significant weekly losses in the oil market

The prices of Petroleum They post gains this Friday, although they are on track to experience significant losses during the week after unfounded rumors about a ceasefire between Israel and Hamas.

U.S. crude futures rose 0.7% to $74.33 a barrel, while Brent futures rose 0.7% to $79.23 a barrel.

OPEC+ left its oil production policy unchanged on Thursday, which will likely ensure supply remains tight in the first quarter of the year. The group will meet again in March to decide whether or not to extend the voluntary production cuts in place for the first quarter.

However, both contracts are on track to post weekly losses of around 5% as the possible conclusion of the war between Israel and Iran-backed Hamas would reduce tensions in the Middle East, easing concerns about supply disruptions. in this oil-rich region.

Source: Ambito

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