- U.S. stock indexes posted another weaker session yesterday after an ADP report indicated that U.S. private companies added the fewest number of jobs (99k vs. 145k forecasts) since the start of 2021; a Challenger report indicated a record number of layoffs since Q2 2023 (75k vs. 25k previously). A slightly better-than-forecast ISM services reading failed to improve market sentiment
- Today, attention focuses on the August NFP report (14:30), with the market expecting a reading of 165k after 114k last time and a drop in the unemployment rate to 4.2% from 4.3% in July
- Contracts on the US100 (Nasdaq 100) are losing 0.4% after results from semiconductor manufacturer Broadcom (AVGO.US). The company's shares lost nearly 7% after the session, although it managed to beat expectations on earnings per share (18% y/y) and revenue (47% y/y). Without the positive contribution from the VMWare acquisition, however, the company's revenue would have grown only 4% y/y.
- Earnings per share were $1.24 vs. $1.22 forecasts, and sales were $13.07 billion vs. $12.98 billion expectations; the magnitude of the beat in market forecasts was therefore relatively small
- Broadcom's forecast for the current quarter, although raised, 'disappointed' expectations; the company expects $14 billion in sales; Wall Street's model forecasts suggested $14.1 billion. For the full year, the company expects $12 billion in revenue from AI products; at the start of 2024 it expected $11 billion
- The session in Asia was again dictated by sellers; Japan's Nikkei lost 0.7%, India's Sensex lost 0.9%, and South Korea's KOSPI lost over 1%. China's Hang Seng closed it flat;
- Nvidia shares lost nearly 1% in yesterday's post-session trading; Bank of America indicated that the company's stock has been a 'consistent' buying opportunity in recent weeks. Tesla gained 4% on accelerated plans to approve autonomous driving in markets in Europe and China
- U.S. 10-year bond yields are at their lowest since the fall of 2023; they are hovering around 3.7% and have fallen 2.5 basis points since yesterday. EURUSD continues to rally above 1.11 and USDIDX dollar index contracts are trading at double-digit lows below 101
- There is little volatility in the commodities and precious metals markets; energy commodities are mostly losing; gold is trading up a slight 0.15%
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