Changing of the guard at the Bank of Japan
Wall Street futures are down slightly. Labor market data sent stocks down on Friday. The The Dow Jones dropped 0.38% to 33,926.01 points, the S&P 500 dropped 1.05% to 4,136.04 points and the Nasdaq lost 1.59% to 12,006 points. Unemployment fell slightly to 3.4% from 3.5% previously. Estimates indicated a deterioration to 3.6%. This is the lowest level for 53 years. Average wage growth was +4.4%, was estimated at +4.3%, from +4.6% in December. For Filippo Diodovich, IG senior strategist, these data do justice to the too many illusions of these weeks. “These data belie the narrative of central banks and above all the expectations of the markets. The US business world remains strong, very strong, despite the Federal Reserve’s restrictive moves. Wage growth is showing to be consistent and will bring further inflationary pressures. Central banks, and in particular the Federal Reserve, will have to make further efforts to bring inflation back towards the 2% target. One or two 25 basis point hikes may not be enough,”
THE STARS OF WALL STREET
BOEING
RBC Capital analysts downgraded the stock’s recommendation to Sector Perform from Outperformhowever keeping the TP at $225. Among the main reasons behind the downgrade, analysts pointed to worse-than-expected supply chain constraints.
FORD
Loss 7% Group missed fourth quarter earnings and revenue estimates as cost management struggles. The bottom line came in at $10.4 billion, down $1.1 billion from his own forecast and lower than consensus, due to production problems; the figure is slightly higher than the previous year (10 billion). For 2023, it expects a net margin of between $9 billion and $11 billion versus $9.94 billion expected by analysts, with revenues up 1.5% and cash flows around $6 billion.
STARBUCKS
It lost 4.4% after lower-than-expected earnings. The coffee chain’s sales in China plummeted for the Covid wave.
ASIA
The week is started tonight in Asia Pacific with Japan’s financial market affected by exchange rate rumors at the central bank. Tokyo Stock Exchange gains 0.5% The Nikkei newspaper wrote that the current deputy of the Bank of. Japan, Masayoshi Amamiya, is the most serious candidate to replace the outgoing Haruhiko Kuroda. A change in the name of continuity is therefore looming.
China’s stock markets are down, also due to the effect of the geostrategic risk caused by the downing of the Chinese balloon over the skies of the United States. Hong Kong Hang Seng -2.5%. CSI 300 of the Shanghai and Shenzen price lists -1.7%. As regards instead the performance of the second largest economy on the planet, Bloomberg reports that commercial banks are increasing their efforts on the marketing and promotional front in favor of the disbursement of new credit, above all consumer credit.