Beat the Street: payrolls on deck; investors track treasury yields; oil majors fall; strike action
US stocks have extended declines slightly after weekly jobless claim data and ahead of the NFP. Plus, worries over elevated treasury yields remain, oil majors slip as crude prices drop more than 1% and medical sector strikes.
(Video Transcript Summary)
Payrolls data eagerly awaited
In this edition of Beat the Street, Angeline Ong shares important market news and data to help you understand what's happening in the US markets.
She says investors are keeping a close eye on the non-farm payrolls (NFP) report, which shows the number of jobs added in the US. This report is crucial because it gives us insight into the health of the US labour market.
Crude oil price still dropping
Investors are also closely watching Treasury yields, which reflect the interest rates on government bonds. The price of brent is going down, which is making investors a bit cautious. More than 75,000 healthcare workers from Kaiser Permanente, a major US healthcare provider, have gone on strike. This shows us that there are some challenges in the healthcare industry that may impact the market.
In terms of the US trade balance, which shows how much the US is importing and exporting, the August figure came in at -$84.6 billion, meaning the US imported more than it exported.
The initial jobless claims number, which shows the number of Americans filing for unemployment benefits, was slightly weaker than expected, indicating that the upcoming NFP report will be interesting.
With regards to companies' earnings reports, Constellation Brands, a beverage company, did really well in Q2 and raised its annual profit target.
Is Levi Strauss feeling cost-of-living pinch?
Meanwhile, Levi's, a clothing company, is expected to have lower earnings compared to last year. It is worth paying attention to Levi's comments on changing consumer behaviour due to high inflation.
Angeline talks about the upcoming initial public offering (IPO) from shoe firm Birkenstock, which plans to sell shares at a price between $44 and $49. However, this could be challenging because people are cutting back on luxury items due to the cost of living crisis.
On a positive note, Birkenstock is benefiting from the trend of casual dressing, which has been accelerated by Covid-19.
Oil industry battles strikes and declining oil prices
In terms of the oil industry strikes, Chevron has accepted recommendations from the Fair Work Commission and is working with everyone involved to finalise agreements. Oil firms are facing challenges because of the decline in oil prices, which is due to weaker demand and declining exports.
More than 75,000 healthcare workers from Kaiser Permanente are striking over issues related to pay and standards. This strike has a big impact on the healthcare sector, so other major healthcare companies like UnitedHealth and Aetna should also be watched closely.
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