Beat the street: ADP survey shows resilience in US labour market
The US equity market is poised to open lower after the US private sector created 164,000 jobs in December, higher than what the market had anticipated, and tempering expectations of an early Fed interest rate cut.
Now the market awaits Friday’s non-farm payrolls data. Meanwhile, Walgreens boots Alliance beat earnings expectations but halved its quarterly dividend. It expects pullback in consumer spending to continue to impact US retail sales in the short term.
(AI Video Summary)
US ADP employment data higher than expected
In today's "Beat the street" feature, host Axel Rudolph informs us about the current market conditions and important news that could affect trading. He begins by explaining that US stock market indices are expected to start the day positively, after a couple of days in the red. The focus will also be on the US dollar as the market digests new employment data. He points out that the ADP employment data, which measures job growth, came in higher than expected, indicating a strong job market. Initial jobless claims were also lower than anticipated.
He then goes on to discuss job openings, which have fallen to their lowest level since March 2021. He also shares his expectations for tomorrow's non-farm payrolls report, which will include information on the number of new jobs, the unemployment rate, and average earnings. He analyses the technical perspectives of major stock market indices like the Dow Jones, S&P 500, and NASDAQ 100, highlighting some potential trends and pressures on these indices.
Federal Reserve's recent meeting minutes
Moving on, Rudolph talks about the Federal Reserve's recent meeting minutes, which expressed concerns about the economy's ability to handle current interest rates if job demand weakens further. He also explains how these comments from the Federal Reserve have affected the price of gold, which has been falling due to the strength of the US dollar.
Oil prices
He then discusses oil prices, which have increased due to tensions in the Middle East and the closure of a Libyan oil production plant. He analyses the technical levels and downtrends of both West Texas Intermediate (WTI) and Brent crude oil futures contracts.
Walgreens Boots Alliance's quarterly earnings
Next, he shifts to talking about Walgreens Boots Alliance's quarterly earnings. He mentions that while their earnings per share decreased compared to the same quarter last year, they still surpassed analysts' expectations. The company's revenue was also stronger than anticipated. Rudolph also brings up Walgreens' decision to decrease their dividend, as well as their plans to reduce costs and increase cash flow.
Stock market performances
Lastly, he briefly touches on the stock performance of Home Depot, Nike, General Motors, and Ford. He provides relevant news and technical levels to watch for these companies.
In closing, Rudolph provides final analysis on the performance of the NASDAQ 100 index, noting potential support levels it may reach.
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