NEW YORK (Dow Jones) — After an overall passable job market report at the end of the week, Wall starts the week on Monday with levies. On Good Friday, only investors in the bond market could react to the labor market data, no stock trading took place. Although he had US job market showed a further slowdown compared to the previous month, but broadly met market expectations. Traders are skeptical that the data will persuade the US Federal Reserve to pause interest rates. The majority of the market expects another interest rate hike in May, which is why equities are being sold. The Dow Jones index loses 0.2 percent in early trading to 33,429 points, while the S&P 500 and Nasdaq Composite are down 0.6 percent and 1.1 percent, respectively.
236,000 new jobs were created in March, slightly below economists’ forecast of an increase of 238,000. In February there were 326,000 revised jobs, in January 472,000. The separately surveyed unemployment rate even fell to 3.5 from 3.6 percent in March, while economists had expected a rate at the level of the previous month.
Bank of America (BoA) believes the US Federal Reserve should hike rates by 25 basis points again in May following the jobs report. However, the analysts expect interest rates to pause afterwards. You are currently seeing the interest rate peak at 5.0 to 5.25 percent. “The Fed will have a good amount of second-quarter data by its June meeting, which should justify a pause in rate hikes,” the experts said.
According to the CME’s Fed Monitor, market participants currently expect a probability of 65.3 percent rate hike by 25 basis points by the Fed at its May meeting. Last Thursday the value was still 49.2 percent. The focus is now on the US inflation data due over the course of the week – consumer prices on Wednesday and producer prices on Thursday. In addition, the reporting season starts on Friday. Here JP Morgan, Citigroup, Wells Fargo and Blackrock will provide a look at the books.
Dollar rises slightly – yields fall again
The dollar is friendly at the beginning of the week, the dollar index gains 0.6 percent with the interest rate hike fantasies. The dollar had already risen on Friday as a result of the US jobs report. It will take a further slowdown in the jobs market to stop the Fed from raising rates, Santander analyst Stephen Stanley said following the jobs report. CPI for March, due on Wednesday, is likely to rise and “will not stand in the way of another 25 basis point rate hike unless the banking situation destabilizes again.”
Oil prices have changed little. The price of gold eased by the strong dollar and slipped below the $2,000 a troy ounce mark. The increased Ziser expectations are also affecting the precious metal.
The bond market is inconsistent, but it reacted to the labor market data on Friday with sharply increased yields. At the short end of the market, these continue to rise.
Tesla stock in reverse again
Among the individual values, Tesla shares are down 3.5 percent. The company wants to attract buyers with lower prices again. As the electric car manufacturer announced, it has again reduced prices in the USA. This is the fifth trading day in a row with levies. The stock is also being weighed down by March auto sales data. Growth slowed significantly in March compared to February.
After weak PC shipments data, Apple fell 2.6 percent. In contrast, Micron Technologies’ shares are up 7.8 percent as competitive pressure eases. The fall in the price of memory chips has given competitor Samsung Electronics its lowest profit since 2009 in the past quarter. Samsung then announced that it would cut memory chip production. Analysts at Citi called Samsung’s cut “very positive” for the DRAM industry, noting that the South Korean company accounts for about half of the total market.
The Merck & Co papers lose 0.6 percent. The US pharmaceutical company, together with its partner Eisai, has suffered a setback in two studies for a combination therapy of Lenvima and Keytruda for the treatment of advanced cancer. As a result, the partners are completing two phase 3 studies.
===
INDEX last +/-% absolute +/-% YTD
DJIA 33,428.75 -0.2% -56.54 +0.9%
S&P 500 4,080.05 -0.6% -24.97 +6.3%
Nasdaq Comp. 11,950.71 -1.1% -137.24 +14.2%
Nasdaq-100 12,898.05 -1.3% -164.55 +17.9%
US Bonds
Term Yield Bp to VT Yield VT +/-Bp YTD
2 years 3.98 +2.1 3.96 -43.7
5 years 3.52 +1.9 3.50 -47.7
7 years 3.47 +1.3 3.46 -50.2
10 years 3.40 -0.2 3.40 -47.9
30 years 3.61 -1.3 3.62 -36.2
FOREX last +/- % Thu 8:11am Wed 5:30pm % YTD
EUR/USD 1.0843 -0.5% 1.0892 1.0920 +1.3%
EUR/JPY 144.68 +0.4% 143.10 143.00 +3.1%
EUR/CHF 0.9873 +0.1% 0.9881 0.9879 -0.3%
EUR/GBP 0.8773 -0.1% 0.8753 0.8757 -0.9%
USD/JPY 133.43 +1.0% 131.32 130.95 +1.8%
GBP/USD 1.2360 -0.5% 1.2452 1.2471 +2.2%
USD/CNH (Offshore) 6.8905 +0.2% 6.8829 6.8806 -0.5%
Bitcoin
BTC/USD 28,243.00 -0.8% 28,024.82 28,008.18 +70.1%
CRUDE OIL last VT settlem. +/- % +/- USD % YTD
WTI/Nymex 80.70 80.70 0% 0 +0.3%
Brent/ICE 84.85 85.12 -0.3% -0.27 0%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,988.66 2,008.35 -1.0% -19.69 +9.0%
Silver (Spot) 24.78 25.03 -1.0% -0.24 +3.4%
Platinum (Spot) 997.60 1,011.40 -1.4% -13.80 -6.6%
Copper Future 3.98 4.02 -0.9% -0.04 +4.3%
YTD relative to previous day’s close
===
Contact the author: [email protected]
DJG/DJN/flf
(END) Dow Jones Newswires
April 10, 2023 09:57 ET (13:57 GMT)
Leverage must be between 2 and 20
No data