U.S. Stocks Dip Slightly Ahead Of Crucial Nonfarm Data Release

U.S. stocks saw a slight decline on Thursday, with the market eagerly awaiting the Friday nonfarm employment data.

Initial jobless claims in the U.S. for the past week came in at 207,000, below market expectations.

The President of the San Francisco Federal Reserve stated that the Fed can stay put if the labour market cools down and inflation subsides.

On Thursday, the initial jobless claims in the U.S. for the past week saw a slight uptick to 207,000 (market expectation was 210,000). This reflects the resilience of the labour market and does not confirm the employment cooling signals from Wednesday’s “small nonfarm” report.

After the data release, U.S. Treasury yields briefly rose and hit a daily high.

Some analysts believe that this week’s employment report and next week’s CPI inflation data will determine whether it strengthens the market’s expectations of an interest rate hike in November by the Federal Reserve.

U.S. Stocks

Fundamental Analysis:

Large-cap tech stocks had mixed performance, with Netflix down over 1%, while Amazon, Google, and Facebook saw slight declines. Apple and Microsoft made slight gains.

Semiconductor stocks had mixed results, with Nvidia, Micron Technology, and United Microelectronics Corporation up over 1%, while Applied Materials, ARM, ASML, and AMD saw declines exceeding 1%.

Automotive stocks showed varying performance, with Rivian, known as the “Tesla killer,” plummeting over 22% after announcing a $1.5 billion convertible bond issuance.

Vietnam’s “Tesla,” VinFast, surged over 5%, with Q3 revenues growing by 159%. Tesla saw a slight decline.

Mirati Therapeutics Inc. soared over 45%, reaching a new high since December 8, 2022, amid reports that French pharmaceutical giant Sanofi is exploring the possibility of acquiring the cancer drug manufacturer Mirati Therapeutics Inc.

Chinese concept stocks had mixed gains and losses, with the Nasdaq Golden Dragon China Index falling 0.25%.

iQiyi rose over 2%, while Baidu and TAL Education saw gains of over 1%. TSMC, Tencent Music, JD.com, and others had slight gains, while Li Auto and Bilibili fell over 1%, and Vipshop and Alibaba saw slight declines.

Technical Analysis:   

(S&P 500 Index, 1-day chart)

Market Trends:

  • Dow Jones Industrial Average fell 9.98 points, a 0.03% decrease, closing at 33,119.57 points.
  • Nasdaq Composite Index (Nasdaq) dropped 16.18 points, a 0.12% decrease, closing at 13,219.83 points.
  • S&P 500 Index declined 5.56 points, a 0.13% decrease, closing at 4,258.19 points.

Hong Kong Stocks

All three major Hong Kong indices rose today.

In the tech sector, Baidu Group gained nearly 3%, while Meituan, Netease, and Tencent Holdings rose over 2%.

Property stocks saw collective gains, led by Longfor Group, up over 6%.

Gas stocks, with China Gas leading, increased by nearly 4%.

Chinese brokerage stocks showed active growth, with Oriental Securities surging over 5%.

Environmental protection, internet healthcare, and wind energy sectors performed well, while newly listed consumer investment stock, TianTu Investment, fell over 25%.

Yesterday, the Hang Seng Index (HSI) managed only a modest 18-point gain at the close.

Total daily trading volume dropped further to 47 billion yuan, marking the lowest single-day volume since December 2018.

Given the current situation, it is anticipated that net inflows from mainland Chinese investors will begin next week, possibly pushing the trading volume to around 80 billion yuan, but still falling short of the one hundred billion yuan mark.

Technical Analysis:

(Hang Seng Index, 1-day chart)

Market Trends:

  • Hang Seng Index (HSI) rose by 1.84%, closing at 17,530.95 points.
  • Hang Seng Tech Index (HSTECH) gained 1.92%, closing at 3,829.81 points.
  • Hang Seng China Enterprises Index (HSCEI) increased by 1.86%, closing at 5,997.66 points.

FTSE China A50 Index

Fundamental Analysis:

The A-share market in China remained closed for the entire day in light of the China National Day holiday.

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