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Morning Research Notes - 04.11.24
US stock markets closed higher on Friday, as a weaker-than-expected jobs report solidified expectations of a Fed rate cut this month. A strong performance by Amazon also boosted the market. Major commodities had a mixed day: Iron ore increased 0.3% to $US103.80 a tonne, Brent crude climbed 0.8% to $US73.10 a barrel and contrastingly, spot gold fell 1.7% to $US2,740.30 an ounce.
On Friday, Wall Street closed higher as a weaker-than-expected October payrolls report bolstered expectations for a Federal Reserve rate cut next week. The Dow Jones Industrial Average rose by 228 points (0.7%), the S&P 500 increased by 0.4%, and the NASDAQ Composite gained 0.8%. Amazon’s strong quarterly revenue growth, driven by generative AI opportunities, boosted consumer stocks, while Apple’s stock fell slightly due to a cautious revenue outlook. Despite better-than-expected earnings from oil majors, the energy sector remained flat amid rising geopolitical tensions in the Middle East.
On Friday, the Australian stock market closed lower, with the ASX 200 declining by 0.51%. This downward trend was evident across major indices, with the Financials, Info Tech, Health Care, and Utilities sectors recording losses of 0.92%, 0.43%, 1.11%, and 0.1%, respectively. However, the Materials sector managed to post gains, rising by 0.20%. Major commodities had a mixed day: Nickel ended in the green, rising by 2%, while Copper, Aluminium, and Zinc fell by 0.15%, 0.02%, and 1.27%, respectively.
Chart of the day
The October jobs report showed a significant slowdown in employment growth, with non-farm payrolls increasing by only 12,000, well below expectations. This weakness is attributed to the impact of hurricanes Helene and Milton, as well as strike activity. Despite the disruptions, the Federal Reserve is likely to continue with its planned policy rate cuts, as the underlying data suggests a softening labour market.
Source: Livewire
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