Mixed Market Reactions, As the week draws to a close, the financial landscape has witnessed a series of events that have kept investors on their toes. Let’s delve into the key developments of the past week, taking a closer look at market movements, commodities, and the cryptocurrency sector.
Market Overview: A Mixed Bag of Performance
The Dow Jones Industrial Average closed Friday’s session with a 116-point gain, demonstrating resilience amid a backdrop of uncertainty. The S&P 500 followed suit, adding nearly 0.2%, while the Nasdaq, albeit marginally lower, held its ground. These movements were largely influenced by the release of job data, signaling shifts in the labor market.
Labor Market Insights: A Cooling Job Market
The U.S. economy added 187,000 jobs in the latest report, surpassing market expectations of 170,000. However, this positive news was somewhat dampened by a downward revision of 110,000 jobs in the previous two months. The jobless rate also inched up to 3.8%, exceeding forecasts of 3.5%. This data suggests a cooling labor market, providing the Federal Reserve with room to consider a pause in its tightening cycle.
The manufacturing sector showed some positive signs as the ISM report indicated a more substantial easing of the downturn in August than anticipated. However, this development put pressure on tech companies, with notable declines in stocks like Tesla, which fell 5% after announcing price cuts for two of its models in the U.S.
Earnings Report Highlights
In the realm of corporate earnings, Dell Technologies, MongoDB, and Lululemon outperformed expectations, with gains of 21.1%, 3%, and 6%, respectively. Conversely, Broadcom and VMware faced disappointing updates, resulting in losses of 5.5% and 2.8%.
Weekly Performance Recap
For the week, the Dow registered a 0.6% gain, while the S&P 500 showed a more robust performance, rising by 1.9%. The Nasdaq led the way, with an impressive 2.6% increase.
Commodity Market Insights: Platinum’s Rally
Platinum futures have seen a resurgence, trading at around $960 per ounce, a significant rebound from a 10-month low recorded on August 16th. This rally is primarily attributed to expectations of increased demand for platinum in China, particularly in the automobile industry. China’s economic support measures and stricter emissions standards are driving greater demand for platinum, which is essential in autocatalysts.
However, supply constraints, stemming from operational difficulties and power issues in South Africa, pose a challenge. The World Platinum Investment Council predicts a substantial deficit of 983,000 ounces in 2023, reaching levels unseen since the 1970s.
Currency Market Update
In the currency market, the Russian Ruble (-1.68%), Swedish Krona (-0.87%), and Canadian Dollar (-0.69%) faced losses. While the Dollar Index (0.57%), South Korean Won (0.39%), and Brazilian Real (0.35%) showed gains.
Cryptocurrency Concerns: Bitcoin’s Decline
Bitcoin, the largest cryptocurrency, has encountered challenges in maintaining its upward momentum. Recent losses have been exacerbated by negative market sentiment and delays in the approval of spot Bitcoin Exchange-Traded Funds (ETFs) by the U.S. Securities and Exchange Commission (SEC). As of Friday, September 1st, Bitcoin traded at $25,442, marking a 2.22% decrease since the previous session and a 12.62% loss over the last four weeks.
CRWD – Take profit order up @160.30:
AGCO – place Stop loss order @125.37:
TXN – Buy long signal @171.27: