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ADDX Go Morning Market Wrap - 2024 Oct 2nd

Go Wire
Go Wire
October 2, 2024
GoGPT Summarizes Articles

Market Key Focus

Equities: Stocks fall due to middle east tensions

Crypto: Bitcoin dumped to $62000 finally

US Treasury Bonds: Treasury gains on safehaven bid

FX: USD higher on Powell’s pushback and safe-haven demand

Gold and oil: Oil and gold prices rise due to escalating Middle East conflict





Smart Money Tracking

ARKK Investment Holdings Update:

  1. Reduced its holdings of Robinhood by 78,720 shares, a decrease of 0.65% from the previous period, and currently accounts for 4.68% of the total holdings.
  2. Reduced its holdings of Shopify Inc by 18,544 shares, a decrease of 0.65% from the previous period, and currently accounts for 3.97% of the total holdings.
  3. Unity Software Inc.'s holdings decreased by 32,544 shares, a 0.65% decrease from the previous period, and currently accounts for 1.93% of the total holdings.

Stocks to Focus

  1. Barclays reveals that key components are expected to be undervalued by 3 million, and Apple's sales target has dropped by 20%
  2. Tesla expected to record first quarter sales growth this year, China's increased electric vehicle subsidies boost demand
  3. Meta's stock price hits a record high, Meta launches holographic glasses
  4. Nike fell after the market, and its revenue in the first quarter of fiscal year 25 was 11.6 billion US dollars, down 10%

Market events

ADP Nonfarm Employment Change(Sep)

Previous: 99K

Forecast: 124K

Crude Oil Inventories

Previous: -4.471M

Forecast: -2.1M

Macros

  1. US ISM Manufacturing PMI for September was 47.2, unchanged from the prior, but beneath the expected 47.5. New orders and production rose to 46.1 (prev. 44.6) and 49.8 (prev. 44.8), respectively, while employment dipped to 43.9 from 46.0, putting the focus back to labor market with ADP up today and NFP on Friday.
  2. Headline JOLTS jobs openings in the US was hotter than expected, rising to 8.04mln in August, above the 7.66mln forecast and up from the prior 7.711mln. The Quits rate, however, fell to 1.9% from 2.0%, while the vacancy rate moved higher to 4.8% from 4.6%. Data continues to be mixed and Powell said on Monday downplayed the possibility of back-to-back 50bps rate cuts.
  3. Euro-area inflation slowed to 1.8% YoY from 2.2% in August, falling below the 2% target and clearing the path for an October ECB rate cut.

Earnings

Before Open: Conagra Brands, RPM, Tilray Inc

After Close: Levi Strauss A, Novagold

US Equities

U.S. stocks fell on Tuesday afternoon due to Iran's missile strikes against Israel and various economic reports. The S&P 500 dropped 0.9%, the Nasdaq 100 fell 1.5%, and the Dow was down 0.4%.

Iran's attack was in response to Israel's invasion of southern Lebanon, raising regional tensions. On the economic front, job openings in August unexpectedly increased to 8.04 million from 7.71 million in July, indicating a slow cooling of the labor market. U.S. manufacturing activity remained unchanged in September, with the ISM manufacturing PMI steady at 47.2, showing continued contraction.

Investors are also watching Federal Reserve policy, as Chair Jerome Powell indicated no immediate plans to cut interest rates. Tech stocks were hit hardest, with Apple and Nvidia both dropping more than 3%.