US jobless numbers held steady overnight, adding yet another data point that suggests the US economy is firing on all cylinders. Investors remain concerned that the Fed’s rate-cutting plans are looking far more challenging. Markets reacted accordingly.
The S&P 500 closed down 0.22 per cent, the Nasdaq dropped 0.52 per cent and the Dow Jones managed to tip into the green closing up 0.06 per cent. The major indexes are also all poised to give up ground for the week.
The Nasdaq has tumbled more than 3 per cent this week as technology shares struggled. That puts the index on pace for its fourth straight down week, which would mark the longest negative streak since December 2022.
Turning to US sectors, the worst performer was Technology, which closed down 0.88 per cent for the day. The best-performing sector was Utilities, which finished the day up 0.65 per cent.
In company news, more than 12 per cent of S&P 500-listed companies have now reported, according to FactSet. Of those that have already posted results, 73 per cent have surpassed Wall Street expectations for their individual performances.
Netflix’s operating income surged 54 per cent in the first quarter as it added 9.3 million subscribers worldwide, proving that its crackdown on password sharing has had more lasting benefits than some investors expected. The streamer reported earnings of $5.28 a share, well ahead of Wall Street forecasts of $4.51. Operating income totalled $2.6bn, up from $1.7bn a year ago. Its total subscribers reached 269 million, up 16 per cent from a year earlier.
Futures
The SPI futures are pointing to a 0.7 per cent fall.
Currency
One Australian dollar at 7.15am was buying 64.22 US cents.
Commodities
Gold has gained 0.40 per cent. Silver has lost 0.07 per cent. Copper has gained 2.35 per cent. Oil is up 0.05 per cent.
Figures around the globe
European markets closed higher. London’s FTSE added 0.37 per cent, Frankfurt gained 0.38 per cent, and Paris closed 0.52 per cent higher.
Turning to Asian markets, Tokyo’s Nikkei gained 0.31 per cent, Hong Kong’s Hang Seng added 0.82 per cent and China’s Shanghai Composite closed 0.09 per cent higher.
Yesterday, the Australian share market closed 0.48 per cent higher at 7,642.11.
Ex-dividends
One company is going ex-dividend today. WAM Research (ASX:WAX) is paying 5 cents 60 per cent franked.
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
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