Monthly Labor Market Report: Economists Predict Slower Job Growth in February
The monthly labor market report is set to take the spotlight on Friday, with economists forecasting a deceleration in job growth for the U.S. economy in February.
Nonfarm Payrolls Projections
Nonfarm payrolls are expected to have increased by 198,000, down from January’s figure of 353,000. Average hourly wage growth is also anticipated to cool to 0.2% from 0.6% compared to the previous month, while the unemployment rate is forecasted to match the prior reading of 3.7%.
Federal Reserve’s Watchful Eye
Investors and policymakers at the Federal Reserve are closely monitoring these figures. Signs of easing labor demand could potentially give the Fed more flexibility to lower borrowing costs later in the year, aiming to mitigate inflation pressures from wage growth.
Market Reaction to Labor Market Indicators
Earlier indicators this week suggested a solid yet softening labor market in the world’s largest economy. Despite this, the main averages advanced in the previous session, particularly benefiting chip stocks amidst a surge in demand for artificial intelligence.
Powell’s Testimony and Interest Rate Expectations
Fed Chair Jerome Powell’s testimony to a Senate committee fueled hopes for interest rate cuts, as he urged patience and caution regarding U.S. inflation outlook. Powell indicated that the Fed is nearing confidence in achieving its 2% inflation target, hinting at potential rate cuts later in the year.
Market Sentiment and Data Focus
Powell’s relatively dovish stance has shifted market expectations, with analysts now turning their focus back to economic data. While markets initially anticipated rate cuts in the spring, the Fed is not expected to implement them until its June meeting.
“Now that markets have been handed a relatively dovish guideline by Powell, the focus turns back to data,” analysts at ING noted in a recent statement.
As investors await Friday’s labor market report, the intricate dance between economic indicators and monetary policy decisions continues to shape market sentiment and investment strategies. Stay tuned for updates as the story unfolds.
Surge in Oil Prices Fueled by Strong Demand Signals from China and the U.S.
Oil prices experienced a significant rise on Friday, driven by promising indicators of increased demand in both China and the United States, the two largest economies globally. According to data from the Energy Information Administration released earlier this week, U.S. gasoline inventories plummeted by 4.5 million barrels last week, signaling robust demand ahead of the U.S. driving season.
Furthermore, Chinese imports of crude oil surged by 5.1% during the first two months of 2024 compared to the same period last year. This substantial increase underscores the resilience of demand in China, a key player in the global oil market.
The combined effect of declining U.S. gasoline inventories and escalating Chinese crude oil imports has instilled confidence in the strength of oil demand, propelling prices upward. As market dynamics continue to evolve, investors will closely monitor demand trends and geopolitical developments for further insights into the trajectory of oil prices.
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$ALXO- Piper Sandler analyst Christopher Raymond raised the firm’s price target on ALX Oncology to $21 from $11 and keeps an Overweight rating on the shares. The firm sees an increasingly favorable setup for 2024, the analyst tells investors in a research note.
$TGT- Oppenheimer raised the firm’s price target on Target to $200 from $170 and keeps an Outperform rating on the shares. The firm believes the potential for a continued positive earnings revision cycle, a still accommodative valuation, and mixed investor sentiment towards the story could drive further outperformance from here, the analyst tells investors in a research note.We begged y’all to get the LEAPS near $100 👋🤑
$AVGO- Piper Sandler raised the firm’s price target on Broadcom to $1,650 from $1,250 and keeps an Overweight rating on the shares Broadcom reported a stellar January quarter which surpassed Street expectations, with strength in the business being driven by Generative AI, which is contributing to strong growth in the custom ASIC as well as the networking business, the analyst tells investors in a research note. The firm is confident that the VMware acquisition will turn out to be a material success story similar to CA and Symantec.$DOCU-
Piper Sandler raised the firm’s price target on DocuSign to $65 from $55 and keeps a Neutral rating on the shares. DocuSign’s results came in above expectations for all metrics, with billings growth accelerating to 13% year over year growth driven by early renewals and net new growth, the analyst tells investors in a research note. While commentary around stabilization in the macro environment and large customers is encouraging, net revenue retention slipping to 98% with expectations for further deterioration in FY25 is evidence that the road to inflection will take time, the firm argues.$BIDU-
Baidu announced a significant operation upgrade for Apollo Go, its autonomous ride-hailing service platform. Apollo Go is now offering 24/7 autonomous driving service in selected areas of Wuhan, becoming China’s first provider to offer such service. This expansion to round-the-clock operations represents a significant milestone for Apollo Go, providing non-stop autonomous driving services for a wider range of needs and potential users. The extended service hours accommodate users with nighttime travel needs, ensuring a safer and more convenient service.
A Boeing (BA) 777 aircraft carrying a United Airlines (UAL) flight from San Francisco to Osaka, Japan, lost a tire during takeoff, ABC 7 reports. “At approximately 11:35 a.m., United Flight 35 departing to Osaka lost a portion of landing gear tire during takeoff,” a United representative said.
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Todays OP Wire Trade Plan:
Hey OP!
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