©Reuters
Investing.com — As quarterly corporate earnings season continues, investors will be closely watching the January jobs report later in the session for clues about the Fed's future interest rate path. The large-cap tech sector is likely to drive sentiment. Meanwhile, the oil market will end the week with heavy losses.
1. Payroll calculation in January attracts attention
The widely watched monthly report, to be released later in the session, is expected to provide guidance on the health of the U.S. labor market, an important factor that could influence when the Federal Reserve begins cutting interest rates. It may become a factor.
The U.S. economy is expected to add 187,000 new jobs in January, slowing from 216,000 the previous month, and the growth rate will rise to 3.8% from 3.7%.
This would happen after an unexpected entry and a weak report.
The downturn in the jobs report could indicate that the Fed's 525 basis point rate hikes since 2022 are finally starting to take effect, potentially leading to another March rate cut. .
Traders are pulling back on bets that the U.S. will start cutting interest rates this year, but new signs of softening in the labor market could push current pricing for more than 140 basis points (bps) of rate cuts by the end of the year. It will be justified.
2. Futures are mixed ahead of salary announcements
U.S. stock futures rose sharply on Friday ahead of key jobs data, with tech stocks outperforming after strong after-market results from Metaplatforms (NASDAQ:) and Amazon (NASDAQ:) It became an outlook.
By 05:05 ET (10:05 GMT), the contract was largely unchanged, up 25 points (0.5%) and 165 points (1%).
All three major indexes closed about 1% higher on Thursday, rebounding after post-Fed losses, buoyed by gains that were almost universally better than expected.
Investors wait for key economic announcements Friday to digest monthly jobs report [see above]quarterly revenue continues to increase; chevron (New York Stock Exchange:), exxon mobil (NYSE:), Bristol-Myers Squibb (NYSE:), AbbVie (NYSE:).
3. Meta and Amazon shine, Apple disappoints
Three of the large-cap growth and tech stocks that have driven the market's gains for much of last year were released after the market closed on Thursday, each with a different impact.
Shares of Metaplatforms and Amazon soared in after-hours trading, adding a combined $280 billion in stock market value as the tech giants impressed investors with quarterly results, but Apple's value declined following the results. has shrunk by $70 billion.
Meta reported a 25% increase in revenue in the December quarter, driven by strong advertising and device sales, and the Facebook owner declared its first-ever dividend.
Amazon was impressed that its cloud growth met expectations as online spending growth soared during the critical holiday shopping season.
In contrast, Apple (NASDAQ:) is forecasting a decline in iPhone sales, targeting overall sales by $6 billion less than expected, as its flagship product loses ground in the key Chinese market. It shows that it is growing.
4. Nvidia's value soared in January
Optimism about the impact of artificial intelligence on corporate earnings was demonstrated by demand for Nvidia (NASDAQ:) stock this month.
The world's most valuable chipmaker's market value increased by a record $296.52 billion in January to about $1.52 trillion, surpassing the $248.23 billion in May 2023. Ta.
Nvidia currently holds a dominant position in the advanced AI chip market and plans to start mass production of AI chips designed for Chinese customers after this year in order to comply with stricter US export regulations. It is scheduled to start in the middle of the month.
5. Crude oil heads for big weekly losses
Oil prices rose slightly on Friday but were still on track for heavy losses for the week following unsubstantiated reports that a ceasefire between Israel and Hamas was being discussed.
By 5:05 a.m. ET, futures were trading 0.7% higher at $74.33 a barrel, while contracts were up 0.7% at $79.23 a barrel. Ta.
The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, left oil production policy unchanged on Thursday, appearing to ensure supplies remain tight in the first quarter of this year.
The group will next meet in March to decide whether to extend voluntary oil production cuts in place in the first quarter.
However, both contracts are set to increase around 5% per week, as an end to the war between Israel and Iranian-backed Hamas would ease tensions in the Middle East and ease concerns about supply disruptions through this vital oil-rich region. A loss was expected.
