Positive US stock index futures, pending the release of crucial new information on the US job market. Among the headlines, Pfizer’s rally stands out, flying about 9% after the American pharmaceutical giant announced that its anti Covid-19 drug cut the risk of hospital admissions by 89%. The Peloton stock capitulates after the fitness company announced it closed the third quarter of the year with a stronger-than-expected loss and cut its full-year outlook accordingly. All three major US indices are preparing to close the week higher: the Dow Jones was up 0.9%, the S&P 500 was up + 1.6%, the Nasdaq Composite + 2.9%. At about 12.56 Italian time, the futures on the Dow Jones are little moved, those on the S&P 500 advance by more than half a percentage point, those on the Nasdaq are + 0.81%.
Thus in the note dedicated to the markets, Gianni Piazzoli, Chief Investment Officer of Vontobel Wealth Management SIM, recalls today’s main market mover, namely the US employment report, which will be announced by the United States Department of Labor at 1.30pm. Piazzoli reminds us that “new non-agricultural workers are expected to be + 450 thousand, after + 194 thousand in September”, that the “unemployment rate is expected to drop to 4.7% from + 4, .8% in September” and that “the Hourly wages are expected to rise on an annual basis + 4.9% from the previous 4.6% increase “.
“In the USA – the manager points out – the House vote on Biden’s economic plan should arrive today for 1.75 trillion dollars in 10 years and at the same time the infrastructure package of 0.55 $ tn. The latter already approved by the Senate will become the law once approved by the House and countersigned by Biden. The first one could go to the House, but then be modified in the Senate. The debate is on the limits to tax deductibility that some Democratic senators would like to raise a lot “. Piazzoli also talks about the other hot topic of today’s session, namely OPEC + ‘s decision to confirm “its own 400,000 barrels / day (oil) production increase program”.
“The pressures of the White House remain – recalls the expert, – which could resort to strategic reserves to contain the strength of prices. Goldman Sachs in his comment on oil insists on the idea that even with a possible release of strategic reserves, the market remains structurally short of supply, especially since 2023 (US shale oil does not offer visibility for more than 2-3 years). In the immediate future, to see a return in prices, all that remains is to wait for the restoration of supplies with Iran.