The final opening bell of this week's trading session on Wall Street brings mixed sentiment. The technology-oriented Nasdaq started the session with small gains, nevertheless still oscillating near the levels of yesterday's closes. Markets are beginning a new month of trading. WTI crude oil fell below the $100 per barrel barrier after the announcement of the release of US strategic reserves. Stock market traders are now reacting to the release of today's data from the US economy.
Payrolls data release:
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Non-farm payrolls: 431k vs 475k expected (ADP: 455k)
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Change in employment in the industrial sector: 38k (32k expected; prior: 36k).
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Unemployment rate: 3.6% vs 3.7% expected
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Wage growth: 5.6% vs 5.5% YoY expected
Employment change came in slightly below expectations, but very close to what the ADP report indicated. On top of that, we have a sizable upward revision to the previous reading, so the net effect of today's missed consensus comes out to zero. Nevertheless, further details of the report point to a strong economy and pro-inflationary factors. A drop in the unemployment rate to a level that suggests full employment. On top of all this, strong employment growth in the manufacturing sector, which points to a positive outlook for the economy. Wages are rising even faster than expected, suggesting further inflationary pressures. A pro-dollar report, also theoretically good for the indexes, though also supportive of strong interest rate hikes.
Today's early trading session on Wall Street brought small declines in the US100 index. Currently, the benchmark is descending towards the important support zones determined by the confluence of 100- and 200-day exponential moving averages (violet and gold lines, respectively) and the 50% Fibo retracement. The nearest target for the demand side may be the area of the 61.8% retracement, which stopped the last upward wave. Source: xStation 5
Company News:
JP Morgan Securities has removed shares of Apple (APL.US) from its Analyst Focus list due to a projected reduction in revenue growth potential. According to the bank, the benefits from the launch of the new iPhone SE may be limited by moderate growth in consumer spending. However, an 'overweight' recommendation remains unchanged.
Nio (NIO.US) shares rallied more than 5.8% before the open of U.S. trading today on the company's reporting that the Chinese electric carmaker reported 37.6% more cars delivered than last year.
Positive mood is observed on the US listed Chinese stocks, which are rallying thanks to the reports about the planned authorization of firms audit reports for the American regulators. This fact would allow Chinese companies to remain listed on U.S. exchanges. Alibaba (BABA.US) shares jumped by 7% before the market opened on Wall Street. The sentiment is also favorable for shares of DiDi Group (DIDI.US), which surged by more than 17%.
