Interest Rate Worries, Apple Slump May Lead To Continued Weakness On Wall Street

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Thursday, 07 September 2023 09:04:18 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( Breaking: Price of Gold & Silver set to EXPLODE in 2023! Read Now... Attention investors and retirement savers...Investment experts and even mainstream news publications are predicting a windfall for gold and silver prices in 2023! This could be the year we see the value of precious metals like gold and silver EXPLODE! You won't want to miss out! [Reserve Your FREE Gold & Silver Kit Today!]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a lower open on Thursday, with stocks likely to extend the pullback seen over the two previous sessions. Ongoing concerns about the outlook for interest rates are likely to weigh on the markets following recent economic data. A report released by the Institute for Supply Management on Wednesday unexpectedly showed faster service sector growth as well as an acceleration in price growth in the sector. While the Fed is still widely expected to leave interest rates unchanged at its next meeting later this month, CME Group?s FedWatch Tool indicates a 44.6 percent chance of another rate hike in November. Potentially adding to the interest rate concerns, the Labor Department released a report this morning showing an unexpected decrease in first-time claims for U.S. unemployment benefits in the week ended September 2nd. The report said initial jobless claims fell to 216,000, a decrease of 13,000 from the previous week's revised level of 229,000. Economists had expected jobless claims to rise to 234,000 from the 228,000 originally reported for the previous week. A steep drop by shares of Apple (AAPL) may add to the selling pressure, with the tech giant tumbling by 3.6 percent in pre-market trading. The slump by Apple comes after a report from Bloomberg News said China plans to expand a ban on the use of iPhones in sensitive departments to government-backed agencies and state companies. After ending Tuesday?s session mostly lower, stocks saw further downside during trading on Wednesday. The major averages all decreased on the day, with the tech-heavy Nasdaq showing a notable decline. The major averages climbed off their worst levels in afternoon trading but remained firmly negative. The Nasdaq tumbled 148.48 points or 1.1 percent to 13,872.47, the S&P 500 slid 31.35 points or 0.7 percent to 4,465.48 and the Dow fell 198.78 points or 0.6 percent to 34,443.19. The continued weakness on Wall Street partly reflected ongoing concerns about the outlook for the global economy following the recent release of disappointing data from overseas. A recent surge in oil prices added to the negative sentiment amid worries higher oil prices could keep inflation at elevated levels. The price of crude oil has reached its highest levels since last November after Saudi Arabia and Russia extended supply cuts until the end of the year. Stocks saw further downside following the release of a report from the Institute for Supply Management showing an unexpected acceleration in the pace of U.S. service sector growth in the month of August. The ISM said its services PMI rose to 54.5 in August from 52.7 in July, with a reading above 50 indicating growth in the sector. The increase surprised economists, who had expected the index to edge down to 52.5. The data added to recent concerns about the outlook for interest rates, as the report also showed an acceleration in the pace of price growth. The prices index rose to 58.9 in August from 56.8 in July "The ISM Services Sector report underscores the resilience of the largest portion of the economy as the headline print came in higher than expectations, underpinned by a stronger new orders metric," said Quincy Krosby, Chief Global Strategist for LPL Financial. "Unfortunately, the prices paid component moved in the wrong direction -- similar to the higher prices paid in the manufacturing report--edging markedly higher." "This is certainly not good news for a data dependent Fed, as the immediate reaction in the Treasury market saw the ten-year Treasury yield jump higher while equities remain under pressure," she added. "With oil and food prices also higher, this report points to a Fed whose job to quell inflation is certainly not yet quite finished." In other U.S. economic news, the Commerce Department released a report showing the U.S. trade deficit widened in the month of July. The report said the trade deficit increased to $65.0 billion in July from a revised $63.7 billion in June. Economists had expected the trade deficit to rise to $65.8 billion from the $65.5 billion originally reported for the previous month. The wider trade deficit came as the value of imports climbed by 1.7 percent to $316.7 billion, while the value of exports rose by 1.6 percent to $251.7 billion. Telecom stocks turned in some of the market's worst performances on the day, resulting in a 1.9 percent slump by the NYSE Arca North American Telecom Index. Significant weakness was also visible among airline stocks, as reflected by the 1.4 percent drop by the NYSE Arca Airline Index. Banking stocks also showed a considerable move to the downside, dragging the KBW Bank Index down by 1.4 percent. Natural gas, tobacco and steel stocks also saw notable weakness, while some strength emerged among housing stocks. --------------------------------------------------------------- Do you day trade? Trader Alerts streams stocks reaching new highs and lows as well as stocks breaking out of previous volume highs as they happen. It's a powerful tool for day trading ideas. [Learn More / Upgrade]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( The Labor Department released a report on Thursday unexpectedly showing a decline in first-time claims for U.S. unemployment benefits in the week ended September 2nd. The report said initial jobless claims fell to 216,000, a decrease of 13,000 from the previous week's revised level of 229,000. Economists had expected jobless claims to rise to 234,000 from the 228,000 originally reported for the previous week. The Labor Department said the less volatile four-week moving average also edged down to 229,250, a decrease of 8,500 from the previous week's revised average of 237,750. A separate report released by the Labor Department on Thursday showed labor productivity in the U.S. jumped by less than previously estimated in the second quarter. The Labor Department said the surge in productivity in the second quarter was downwardly revised to 3.5 percent from 3.7 percent. Economists had expected the pace of growth to be upwardly revised to 3.8 percent. The spike in labor productivity in the first quarter still reflects a notable rebound from the 1.2 percent slump in the first quarter. Meanwhile, the report said the jump in unit labor costs in the second quarter was upwardly revised to 2.2 percent from 1.6 percent. Economists had expected the increase to be unrevised. The bigger than previously estimated increase in unit labor costs in the second quarter came on the heels of a 3.3 percent surge in the first quarter. At 11 am ET, the Energy Information Administration is due to release its report on oil inventories in the week ended September 1st. Crude oil inventories are expected to decrease by 2.1 million barrels after plunging by 10.6 million barrels in the previous week. The Treasury Department is also scheduled to announce the details of this month?s auctions of three-year and ten-year notes and thirty-year bonds at 11 am ET. At 3:30 pm ET, New York Federal Reserve President John Williams is due to participate in a moderated discussion before the Bloomberg Market Forum. Atlanta Federal Reserve President Raphael Bostic is scheduled to speak on the economic outlook in a moderated conversation hosted by Broward College at 3:45 pm ET. At 7 pm ET, Bostic is due to speak on economic mobility before the Prosperity Partnership/Greater Fort Lauderdale Alliance Foundation dinner. --------------------------------------------------------------- [3 Tiny Stocks Primed to Explode]( The world's greatest investor ? Warren Buffett ? has a simple formula for making big money in the markets. 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On the other hand, shares of McDonald?s (MCD) may move to the upside after Wells Fargo upgraded its rating on the fast food giant?s stock to Overweight from Equal Weight. --------------------------------------------------------------- [Sell every Stock except ONE]( Markets are down... But Jeff Clark couldn't care less because he ignores almost every stock in the market except ONE. He lives financially free trading this One Stock Once per month... [Ticker Revealed.]( --------------------------------------------------------------- Europe European stocks are turning in a lackluster performance during trading on Thursday after declining for six straight sessions. Some buying support emerged at lower levels after data showed Chinese exports and imports shrank less than expected in August. Closer to home, Eurostat reported that Eurozone GDP grew by 0.1 percent in the second quarter of 2023 compared to the previous quarter. Elsewhere, German industrial output posted a monthly decrease of 0.8 percent in July, while U.K. house prices took another tumble in August, falling by 4.6 percent compared to the same month last year, the Halifax said. While the German DAX Index is down by 0.2 percent, the French CAC 40 Index is up by 0.1 percent and the U.K.?s FTSE 100 Index is up by 0.2 percent. In corporate news, Swiss food giant Nestle have moved to the upside after the company agreed to acquire Brazilian chocolate brand Kopenhagen. SAP has also gained after the business software maker said it has bought software management company LeanIX from investors to boost its business transformation portfolio. Direct Line Insurance Group shares have jumped after the motor and home insurer posted a first-half operating loss but forecast improved earnings in 2024. Meanwhile, Smurfit Kappa has declined. The packaging giant said it is in discussions to merge with U.S. rival WestRock. Conglomerate ThyssenKrupp has also moved lower on news that Chief Financial Officer Klaus Keysberg will step down from his role next year. --------------------------------------------------------------- Do you have a full view of the market? Level 2 lets you see all of the orders to buy and sell shares, allowing you to see what is really going on in the market. If you don?t have this in your trading toolkit, you?re at a serious disadvantage. [Learn More / Upgrade]( --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks drifted lower on Thursday after China reported weak trade figures for August, adding to worries about slowing growth in the world's second-largest economy. Chinese exports fell 8.8 percent year on year to $284.9 billion last month, extending declines for the fourth straight month as a result of weak external demand and persistent supply chain issues, according to customs data released earlier today. However, the decline was less than the 14.5 percent plunge in July. Imports fell 7.3 percent last month to $216.5 billion, showing some improvement after a 12.4 percent decline in July. China's Shanghai Composite Index tumbled 1.1 percent to 3,122.35, while Hong Kong's Hang Seng Index lost 1.3 percent to close at 18,202.07. Shares of SMIC, China's largest contract chipmaker, slumped 7.2 percent in Hong Kong after two U.S. congressmen called for further sanctions against the company. Japanese shares snapped an eight-day winning streak, with tech stocks suffering heavy losses on lingering worries about inflation and interest rates. The Nikkei 225 Index dropped 0.8 percent to 32,991.08, while the broader Topix Index closed 0.4 percent lower at 2,383.38. Advantest gave up 6.6 percent and Screen Holdings shed 3.7 percent. Seoul stocks ended lower for a third day running on U.S. rate hike woes. The Kospi settled 0.6 percent lower at 2,548.26. SK Innovation and LG Energy Solution lost 1-2 percent. Australian markets tumbled, with losses seen across the board despite Q2 GDP data coming in stronger than expected. The benchmark S&P ASX 100 Index fell 1.2 percent to 7,171.00, while the broader All Ordinaries Index closed down 1.2 percent at 7,374.90. Austal shares rallied 3.2 percent after the shipbuilder won a $143 million contract with the U.S. Navy. --------------------------------------------------------------- Do you day trade? Trader Alerts streams stocks reaching new highs and lows as well as stocks breaking out of previous volume highs as they happen. It's a powerful tool for day trading ideas. [Learn More / Upgrade]( --------------------------------------------------------------- Commodities Crude oil futures are sliding $0.58 to $86.96 a barrel after advancing $0.85 to $87.54 a barrel on Wednesday. Meanwhile, after falling $8.40 to $1,944.20 an ounce in the previous session, gold futures are edging down $3.20 to $1,941 an ounce. On the currency front, the U.S. dollar is trading at 147.46 yen versus the 147.66 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.0694 compared to yesterday?s $1.0727. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +1 888-992-3836. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49