Pay attention to the global financial market situation overnight.
On Friday, December 6th local time, the three major stock indexes in the United States experienced mixed ups and downs. As of the close, the Dow Jones Industrial Average fell 0.28%, the Nasdaq rose 0.81%, and the S&P 500 index rose 0.25%. The Nasdaq and S&P 500 index have reached new closing highs.
In terms of economic data, the non farm payroll in the United States increased by 227000 people in November, with an estimated increase of 220000 people, compared to a previous increase of 12000 people. The US unemployment rate in November was 4.2%, higher than the market estimate of 4.1%, compared to the previous value of 4.1%.
In terms of individual stocks, Tesla rose more than 5%, and Bank of America raised Tesla's 12-month target price to $400 and maintained a buy rating.
In terms of Chinese concept stocks, the Nasdaq China Golden Dragon Index closed up 0.98%, with a temporary increase of 2% during trading and a cumulative increase of 2.15% this week. Most popular Chinese concept stocks have risen, with Youdao up over 6%, Alibaba and JD.com up over 2%, and iQiyi and NetEase up over 1%.
Non farm payroll data exceeds expectations, Bitcoin returns to $100000
On Friday, December 6th local time, the three major stock indexes in the United States experienced mixed ups and downs. As of the close, the Dow Jones Industrial Average fell 123.19 points, or 0.28%, to 44642.52 points; The Nasdaq rose 159.51 points, or 0.81%, to 19859.77 points; The S&P 500 index rose 15.16 points, or 0.25%, to close at 6090.27 points. This week, the Dow Jones Industrial Average has fallen by 0.6%, the Nasdaq has risen by 3.34%, and the S&P 500 index has risen by 0.96%.
Morgan Stanley's Michael Feroli said, "We need to focus on CPI data next week, but we believe that only very big surprises will change the Fed's mind
In terms of economic data, the US Bureau of Labor Statistics released data on Friday showing that non farm payroll employment in November increased by 227000 people, with an estimated increase of 220000 people, compared to an increase of 12000 people in the previous year. The US unemployment rate in November was 4.2%, higher than the market estimate of 4.1%, compared to the previous value of 4.1%.
After the release of new non farm payroll data on Friday, San Francisco Fed President Daley said that the US job market still looks healthy. The labor market is still in a good state, "said Daley at the Hoover Institution at Stanford University. But she added that if inflation erupts again, the Federal Reserve is ready to raise interest rates.
Federal Reserve Governor Bauman stated that inflation is the top priority in decision-making. Tending to cautiously and gradually lower interest rates, lowering policy rates too quickly may reignite inflation. The inflation rate is still higher than the Federal Reserve's target of 2%, and the risk of upward inflation remains prominent.
US Treasury Secretary Janet Yellen stated at the Financial Stability Oversight Council (FSOC) meeting that despite falling inflation and low unemployment rates, the financial system still faces potential risks from commercial real estate and digital assets.
The Chicago Mercantile Exchange's FedWatch tool shows that the likelihood of the Federal Reserve cutting interest rates in December has increased significantly to 85.1% after the data was released, compared to 71% the day before. Citigroup has lowered its expectations for the Federal Reserve's interest rate cut, expecting only a 25 basis point cut in December, and a 50 basis point cut before the release of the US non farm payroll report.
In other markets, Bitcoin has returned to $100000, with a daily increase of over 2%. The second largest cryptocurrency, Ethereum, has surpassed the $4000 mark for the first time since March 14th of this year. Federal Reserve Hamak stated that the Fed has not ventured into Bitcoin, but is concerned about the development of cryptocurrency. Affected by this, cryptocurrency concept stocks in the US stock market have strengthened, with Canaan Technology rising by over 35%, Bit Digital rising by over 9%, and Coinbase rising by over 7%.
The US dollar index rose 0.33% and closed at 106.055 at the end of the foreign exchange market. As of the end of the New York currency market, 1 euro was exchanged for 1.0555 US dollars, lower than the previous trading day's 1.0587 US dollars; 1 pound to 1.2735 US dollars, lower than the previous trading day's 1.2757 US dollars.
International oil prices have fallen. As of the close of the day, the price of light crude oil futures for January 2025 delivery on the New York Mercantile Exchange fell by $1.10, closing at $67.2 per barrel, a decrease of 1.61%; The London Brent crude oil futures price for delivery in February 2025 fell by 97 cents, closing at $71.12 per barrel, a decrease of 1.35%.
Tesla surges, OpenAI discusses with Microsoft to modify AGI terms
In terms of sectors, the 11 major sectors of the S&P 500 index rose 4 times and fell 7 times. Among them, the non essential consumption sector led the way with a 2.39% increase, while the communication services sector rose by over 1%. The energy sector led the decline, with a decrease of 1.57%.
Popular technology stocks have mixed ups and downs. Supermicro computers rose by over 6%, Tesla and Broadcom rose by over 5%, Amazon and Oracle rose by nearly 3%, Meta and Arm rose by over 2%, Netflix and Google A rose by over 1%, and Intel, Micron Technology, Microsoft, Eli Lilly, and Texas Instruments rose slightly; Apple, Cisco, ASML, Qualcomm, and TSMC fell slightly, while Nvidia and AMD fell nearly 2%.
Tesla rose 5.34%. Due to optimism about the development of Tesla's FSD and artificial intelligence fields, Bank of America has raised Tesla's 12-month target price to $400 and maintained a buy rating. The target price is still about 3% higher than Tesla's current stock price.
In addition, xAI, an artificial intelligence company under Tesla CEO Elon Musk, has completed its latest round of financing, raising a total of $6 billion and valuing the company at over $40 billion. According to documents from the US Securities and Exchange Commission (SEC), a total of 97 investors participated in this round of financing, with a minimum single investment of $77500. However, the specific list of investors and the company's revenue were not disclosed. Part of the funds will be used for the construction of a new supercomputing center by xAI in Memphis, which has attracted the attention of tech giants including Nvidia and Dell. The AI chatbot Grok, promoted by xAI, is currently open to paying users of X (formerly Twitter).
According to a report by CCTV News, according to a document released by the Federal Election Commission on the evening of the 5th, Elon Musk donated $259 million to groups supporting Trump's 2024 campaign, becoming one of the largest presidential campaign sponsors in American history.
Microsoft rose 0.21%. According to the Financial Times, OpenAI is in discussions with Microsoft to modify the terms of its cooperation agreement regarding General Artificial Intelligence (AGI) in order to attract more investment. The current agreement stipulates that once OpenAI develops AGI, a highly autonomous system capable of surpassing humans in most economic fields, Microsoft will no longer be able to continue using its most advanced technology.
According to reports, OpenAI plans to remove this clause, allowing Microsoft to continue investing in and using AGI's technology after its release. This modification will pave the way for billions of dollars in future investments. This clause was originally intended to prevent the commercial abuse of technology, and the ownership and usage rights of AGI are controlled by OpenAI's non-profit board of directors. It is reported that OpenAI is currently discussing this matter and has not yet made a final decision. In October of this year, OpenAI completed a $6.6 billion financing with a valuation of $157 billion
Apple fell 0.08%. According to Bloomberg citing informed sources, Apple's self-developed modem system, which has been under development for over five years, will make its debut in the spring of next year. This component will be used for Apple's entry-level smartphone iPhone SE, which will undergo its first update since 2022 next year. Insiders say that Apple hopes to surpass Qualcomm in modem technology by 2027, and the development of modems has been ongoing for a long time. It is reported that Apple originally hoped to bring it to the market in 2021. For this work, Apple invested billions of dollars to establish testing and engineering laboratories, spent about $1 billion to acquire Intel's modem division, and spent millions of dollars to hire engineers from other chip companies.
Amazon rose 2.94%. Adobe data shows that on Black Friday and Cyber Monday this year, online consumption by American consumers reached $10.8 billion and $13.3 billion, respectively, an increase of 10.2% and 7.3% year-on-year. The sales performance of Amazon and Wal Mart was particularly outstanding. The sales of Amazon Black Friday increased by 6% year on year, while that of Wal Mart increased by 3%. E-commerce platforms Shein and Temu also achieved double-digit growth, while Target and Best Buy did not perform as expected, with limited sales growth for the former and a year-on-year decline in sales for the latter. Amazon has set a historical sales record, with hot selling products including Medicube beauty devices, Fire TV equipment, and shark vacuum cleaners.
Financial stocks fluctuate in price. First Capital Financial and American Express rose over 1%, while Wells Fargo, JPMorgan Chase, Mastercard, Visa, Goldman Sachs, UBS Group, United Bank of America, and Bank of America saw slight gains. Regional Finance, Citigroup, BlackRock, Morgan Stanley, Mizuho Financial, American International Group, Deutsche Bank, and Travelers Insurance saw slight declines.
Energy stocks generally fell. Murphy Oil fell over 5%, Brazilian Oil fell over 3%, Chevron, Schlumberger, and Empire Oil fell over 2%, Western Petroleum and Apache Oil fell nearly 2%, Shell, Duke Energy, BP, ConocoPhillips, and ExxonMobil fell over 1%, and US Energy rose over 1%.
British Petroleum fell 1.51%. According to exclusive sources cited by Reuters, BP is seeking to sell its stake in the US natural gas pipeline network, expected to raise up to $3 billion through the sale. BP may sell up to 49% of its shares in its business. This sale is part of CEO Murray Auchinklos' efforts to reduce the company's debt. BP's net debt has increased to $24.3 billion in the third quarter of 2023, an increase of approximately 9% compared to last year. It is reported that BP also plans to sell its shares in Lightsource BP's solar business, onshore wind power in the United States, and offshore wind power. Due to poor stock price performance, BP is facing pressure from investors to improve its profitability and energy transition strategy.
Most popular Chinese concept stocks rose, with the Nasdaq China Golden Dragon Index up 0.98% and a cumulative increase of 2.15% this week. Youdao rose over 6%, Huya rose over 3%, Tencent Music, Weibo, Alibaba, and JD.com rose over 2%, Manbang, iQiyi, and NetEase rose over 1%, Pinduoduo and Baidu rose slightly, NIO closed flat, Xiaopeng Motors, Douyu, Ideal Motors, and Bilibili fell slightly, while Vipshop, New Oriental, and Futu Holdings fell over 1%.