ADDX Go Morning Market Wrap - 2024 Oct 7th

Market Key Focus

Equities: The addition of 254,000 jobs from strong Non-Farm Payroll data boosts the S&P 500 by 0.9%.

Crypto: The overall crypto market experienced moderate volatility

US Treasury Bonds:  10-Year Yield approaches 4%

FX: The USD appreciated following the release of the Non-Farm Payroll data on Friday.

Gold: Gold prices fell by 0.43% to $2,667.80, influenced by a stronger U.S. dollar following a strong jobs report for September.

Oil: WTI crude oil futures increased by 0.9% to close at $74.38, while Brent crude oil futures rose by 0.5% to settle just above $78.05, marking a five-week high

Smart Money Tracking

ARKK Investment Holdings Update:

Reduced its holdings of Tesla by 28,180 shares, a decrease of 0.82% from the previous period, and currently accounts for 15.77% of the total holdings. （Oct 2nd)

Reduced its holdings of Roku Inc by 67,380 shares, a decrease of 0.82% from the previous period, and currently accounts for 10.87% of the total holdings.

Stocks to Focus

1. Indian stocks suffered the largest net sell-off by global funds since January 1, 1999. According to data from the Securities and Exchange Board of India, global funds sold a net $1.85 billion of Indian stocks on October 3.
2. Intel lowered its shipment target for its AI chip Gaudi 3. Originally, it estimated that the shipment volume in 2025 would be about 300,000 to 350,000 units. The latest news is that it has been reduced to 200,000 to 250,000 units.
3. Hims & Hers Health, a supplier of affordable weight loss drugs, rose more than 6% in after-hours trading. The company was included in the S&P SmallCap 600 Index by S&P Dow Jones Indices.

Market events

Consumer Credit

Previous: 25.4B

Forecast: 11.8B

FOMC Member Bowman Speaks

FOMC Member Kashkari Speaks

FOMC Member Bostic Speaks

Macros

The Nonfarm payrolls report for September surpassed expectations, with a total of 254,000 jobs added compared to the estimated 150,000, which had been revised from 159,000. Private payrolls saw an increase of 223,000, outperforming the consensus forecast of 125,000, revised from 114,000. In contrast, manufacturing jobs declined by 7,000, slightly more than the anticipated 5,000 but an improvement from the previously revised 27,000 decline. Wage growth was 0.4% from the previous month, exceeding the expected 0.3%, and 4.0% on a year-over-year basis, above the anticipated 3.8%. The unemployment rate dropped to 4.1% from the forecasted 4.2%. The average workweek was 34.2 hours, just under the consensus estimate of 34.3 hours. Meanwhile, the labor force participation rate remained steady at 62.7%.

Earnings

Before Open

Duckhorn Portfolio: EPS forecast 0.0986, Revenue forecast 104.45M

US Equities

US equities ended higher on Friday following a surprisingly strong jobs report. The S&P 500 saw a rise of 0.9%, the Nasdaq 100 increased by 1.2%, and the Dow Jones reached a new record with a 341-point gain. According to the September jobs report, the labor market added 254,000 jobs, surpassing expectations of 150,000, while the unemployment rate dipped to 4.1% from 4.2% in August. This robust data aligns with Fed Chair Jerome Powell's assessment that the economy is "solid," indicating that the Federal Reserve is unlikely to reduce interest rates by 50 basis points in the upcoming meeting in November. The financial sector led the advancement, with JP Morgan up 3.5%, Bank of America increasing by 2.2%, and Wells Fargo surging 3.6%. Consumer discretionary stocks also performed well, with Tesla rising by 3.9% and Amazon gaining 2.5%. Markets are now looking ahead to the latest Fed meeting minutes on Wednesday and the consumer price index report on Thursday to inform the Fed's rate decisions.