Today’s Outlook:
• Market Commentary: US stocks rallied on Friday, led by technology shares to a sharply higher close as investors assessed a jobs report that showed U.S. hiring rose broadly in September with slowing wage growth. Information technology was up the most of any S&P 500 sector, followed by communication services. Stocks initially fell after the jobs data, which showed U.S. employment increased by the most in eight months in September, but began to rebound by late morning.
• Market watchers have been weighing whether the Fed may be done hiking interest rates after a recent surge in long-term U.S. Treasury yields. Benchmark 10-year U.S. Treasury yields hit 16-year highs on Friday. The day’s data also showed a moderation in wages, which may have been because most of the jobs added last month were in lower-paying industries.
• Important Data: Investors await data on September consumer price inflation and producer price index readings, due next week. Investors also are keen for the upcoming quarterly earnings season, with major banks including JPMorgan Chase (NYSE:JPM) due to report next week.
• Gain or Lose Summary: The Dow Jones Industrial Average rose 288.01 points, or 0.87%, to 33,407.58, the S&P 500 gained 50.31 points, or 1.18%, to 4,308.5 and the Nasdaq Composite added 211.51 points, or 1.6%, to 13,431.34. For the week, the S&P 500 was up 0.5%, the Dow fell 0.3% and the Nasdaq rose 1.6%. The recent gains follow sharp losses for stocks for September and for the third quarter.
• The economy added an impressive 336,000 jobs in September, almost double the anticipated figure. However, unemployment remained unchanged at 3.8%, and hourly wages saw a meager increase of just 0.2%, marking the slowest annual growth in eighteen months.
• This robust nonfarm payrolls report triggered a fresh wave of selling in the US bond market. As a result, both the 10-year and 30-year Treasury yields increased by 5 basis points. The former reached an intraday high of 5.21%, while the latter touched its highest level since September 20, 2007.
• Despite the unexpected job growth, concerns about sluggish wage increases persist. The minimal wage growth could potentially impact consumer spending and inflation, key factors that the Federal Reserve considers when setting interest rates.
• COMMODITIES (Oil Price Decline): Oil prices fell by 9% to 11% in the previous week, marking the most significant weekly decline since March. The decline was due to high US Treasury yields and a stronger US dollar, as well as lower gasoline consumption.
• Geopolitical Impact: The Israel-Hamas conflict has the potential to impact oil prices, although the exact magnitude is unknown. Attention is focused on Iran, which is linked to Hamas and is a significant oil producer. If Israel responds to Hamas with actions against Iran, this could affect the oil market.
• Considering JCI’s position last week which closed below all three Moving Averages, NHKSI RESEARCH still recommends a Wait & See stance while waiting for JCI to land on solid Support, or turn around to rally through all three MA Resistance to above 6950 again.
Company News
• TAPG : Predict CPO Production to Rise 10% in 3Q23
• BWPT : Build Biogas Power Plant
• PTPP : Temporarily Free from PKPU Status
Domestic & Global News
• Tiktok Shop Closed, Cheap Imported Goods Might Move to Other Platforms
• Hamas Vs Israel War: The Situation Escalates, US Military Docked
Download full report HERE.