Beat the street: US jobs growth surges; Exxon Mobil; Chevron; Meta; Amazon; Apple
US jobs growth rose sharply in January, further lowering expectations of how much the Fed might cut rates in the months ahead. Bond yields jumped on the news.
Stocks had a wobble, but were underpinned by relatively positive tech earnings. A mixed bag of oil earnings from giants Exxon Mobil and Chevron.
(AI Video Summary)
Nasdaq set to rise on Meta and Amazon's earnings reports
Welcome to today's edition of "Beat the street" the show that brings you all the latest news and data before Wall Street opens. Today, we have some exciting updates regarding the tech sector. Get ready, because the Nasdaq, one of the major stock market indices, is predicted to rise. This is because two big players in the tech world, Meta Platforms and Amazon, have reported some fantastic results.
Chevron and Exxon Mobil's earnings
On the other hand, Chevron, an oil company, hasn't been so lucky. Their earnings have been affected by weak margins and some charges. However, don't worry, because Exxon Mobil has come to the rescue. They have beaten expectations, with higher trading profits and increased oil and gas output.
US job market currently booming
In January alone, the number of jobs increased by a whopping 350,000, surpassing everyone's expectations. Now, this has sparked a debate about what the Federal Reserve, which controls interest rates, should do. Some experts are suggesting a possible rate cut in March, while others believe that progress in inflation might delay any rate cuts.
The jobs data has had an interesting effect on the market. Banks and bond yields have taken a hit due to the negative impact. To dive deeper into this, Angeline Ong interviews Joachim Klement from Liberum, who explains the potential impact of the strong jobs numbers on interest rates and inflation.
Tech companies updates
Apple's shares are expected to open slightly lower because their revenues are anticipated to be $5 billion less compared to the previous year, mainly due to a decline in iPhone sales in China. On the other hand, there's good news for Amazon. Their shares are expected to rise after announcing better-than-expected earnings and revenue, and they're even introducing their first-ever dividend. And that's not all - Meta Platforms has also impressed with their earnings, surpassing expectations.
Nasdaq, the tech-heavy index, is set to benefit from these positive tech earnings. In fact, IGTV technical analyst Axel Rudolph believes that Nasdaq might reach new all-time highs. Of course, there are always ups and downs in the market, so Axel also mentions areas of support in case of a decline.
Dramatic drop on Nasdaq, S&P 500 and Dow Jones
To wrap things up, the market's reaction to the non-farm payrolls data has been quite dramatic. The Nasdaq, S&P 500, and Dow Jones have experienced a sharp decline. It's definitely an exciting time in the trading world, and we'll keep you updated on all the latest developments. Watch the video to get all the details.
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