New York, February 01, 2024 - PRISM MarketView - Stocks showed resilience as investors geared up for earnings reports from tech giants Apple, Amazon, and Meta Platforms. The market’s movement comes amidst a mix of economic data ahead of the crucial jobs report due on Friday.
In the aftermath of Federal Reserve Chair Jerome Powell dismissing the likelihood of a rate cut in March, Wall Street experienced a surge, led predominantly by big tech companies. Treasury yields remained relatively stable after recent volatility. New York Community Bancorp faced further declines after a surprising loss. In other developments, oil prices increased following reports of U.S. approval for military actions in Iraq and Syria.
On the eve of the anticipated jobs report, unemployment claims unexpectedly rose, hitting a two-month peak. Economists predict a payroll increase of approximately 185,000 for January. Meanwhile, a separate report highlighted a significant rise in labor productivity and the highest factory activity level in 15 months. The S&P 500 saw a 0.5% increase, while the US 10-year yields dropped slightly. The dollar weakened, and the British pound remained stable despite the Bank of England’s mixed signals about future rate cuts.
In a notable trend, institutional investors, including mutual funds and pension funds, sold off U.S. equities at the highest rate since 2015, even as the S&P 500 approached record highs. This selling contrasted with the buying patterns of private clients and hedge funds.
Corporate Updates:
- Qualcomm Inc. forecasts a modest recovery in the smartphone industry for 2024 but expects slow growth in internet-connected appliances.
- Citizens Financial Group Inc. CEO Bruce Van Saun believes that the challenges leading to the collapse of several U.S. regional banks are largely resolved, with recent issues at New York Community Bancorp being an exception.
- Lazard Inc. exceeded profit expectations, marking a successful year in dealmaking under the new leadership of CEO Peter Orszag.
- Peloton Interactive Inc. predicts further sales declines, contradicting expectations of a rebound.
- Royal Caribbean Cruises Ltd.. provided a promising profit outlook, reflecting strong demand.
- Merck and Co. anticipates higher annual profits, driven by robust sales of its cancer drug Keytruda.
- Rogers Communications Inc. exceeded quarterly estimates and projected significant growth for 2024.
- Shell Plc continues its share buybacks, buoyed by effective gas trading despite lower commodity prices.
Market Overview:
- S&P 500: +0.5%
- Nasdaq 100: +0.6%
- Dow Jones: +0.2%
- Stoxx Europe 600: Steady
- MSCI World index: +0.2%
Currency, Cryptocurrency, Bonds, and Commodities:
- Slight decline in the Bloomberg Dollar Spot Index.
- Euro and British pound see minor changes.
- Bitcoin and Ether show slight gains.
- A modest decrease in the yield on 10-year Treasuries.
- WTI crude oil and spot gold both rise.
PRISM MarketView does not provide investment advice.
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Company Name: Prism MarketView
Email: info@prismmarketview.com
Phone: 646-863-6341
Website: https://prismmarketview.com
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