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Wall Street in mixed mood after NFP report
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US2000 rebounds sharply against other indices
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Levi Strauss (LEVI.US) cuts full-year forecasts
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Alibaba (BABA.US) enters AI market
Wall Street is trading at mixed levels at the start of the latest in the week after a slightly weaker reading on the NFP report failed to cool predictions of further interest rate hikes by the FOMC. The US100 and US500 Inexes lost 0.05% and 0.15% respectively. The companies included in the benchmark US2000, which is currently gaining 0.85%, are doing much better.
The Labour Department's June report showed that non-farm employment rose by 209,000 and the unemployment rate stood at 3.6%. Economists surveyed by Dow Jones had predicted that the economy would add 240,000 new jobs. On the other hand, the data supporting the continuation of the hike cycle was the payroll readings, which came in slightly better than expected. According to the money market, the Fed is 92% likely to decide on another 25 basis point hike at the next FOMC meeting.
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S&P 500 index categorised by sector and industry. Size indicates market capitalisation. Source: xStation5
The US500 index is losing close to 0.15% at the start of today's session. Source: xStation 5
Company news:
Well-known apparel retailer Levi Strauss (LEVI.US) is trading down nearly 7% early in today's session following a reduction in its profit forecast for the year. Levi now expects adjusted earnings per share of US$1.10 to US$1.20 for the year, down from US$1.30 to US$1.40 previously. According to Refinitiv, analysts were expecting adjusted earnings per share of US$1.29. Higher costs are weighing on margins for the company, which is additionally struggling with declining sales in wholesale channels in North America.
Levi Strauss (LEVI.US) share chart, D1 interval. Source: xStation 5
The start of the session is also very good for Alibaba (BABA.US) shares, which together with Huawei unveiled new AI market products, including an artificial intelligence (AI) image generator and an AI model upgrade. Alibaba's image generator will compete with US rivals DALL-E and Midjourney, which have gained many followers around the world. The company's shares are gaining more than 3% early in the session.
Alibaba (BABA.US) share chart, H4 interval. Source: xStation 5
Shares of First Solar (FSLR.US) are gaining more than 2% early in the session after the company secured a 5-year revolving credit facility and a $1bn guarantee note. JP Mogan became the arranger of the financing.
First Solar (FSLR.US) share chart, D1 interval. Source: xStation 5
