AOF Analysis closes Wall Street
(AOF) – US stock markets closed sharply higher on Friday. Investors focused on the highly anticipated monthly employment report. The U.S. economy added slightly more jobs than expected in December, while wages posted an unexpected slowdown for the month, it found. Other good news: Activity in the US service sector was much lower than expected in December, according to the ISM. The Dow Jones index increased by 2.13% to $33,630, and the Nasdaq index increased by 2.56% to 10,569 points.
Home goods retailer Bed Bad & Beyond, whose shares fell 22.49% to $1.31 on Wall Street, said it is struggling to fix its finances, sharing doubts about its ability to continue operating. Within a year, his name dropped by 88%. However, based on recurring losses and negative operating cash flow for the nine months ended November 26, 2022, the company continues to take steps to improve its cash position and mitigate any potential cash shortfall.
Macroeconomic indicators
In December, 223,000 jobs were created in the non-agricultural sector, while 200,000 jobs were expected. It was 256,000 (revised from 263,000) in November. The unemployment rate was 3.5%, lower than analysts’ forecast of 3.7%, after 3.7% in the previous month. Hourly wages rose 4.6% year-over-year in December, compared to consensus of +5% and +4.8% in November.
The Institute for Supply Management reported that the service sector in the United States experienced an unexpected contraction in December. The ISM services PMI index stood at 49.6 in December against the consensus of 55 and 56.5 in November. An index below 50 indicates a contraction of the sector.
Values to follow
Bed Bath & Beyond
Home goods retailer Bed Bad & Beyond is expected to file for bankruptcy protection in the coming weeks, with shares down 11.2%. The retailer is considering filing for bankruptcy, potentially opting for Chapter 11 of the U.S. bankruptcy code within weeks, the Wall Street Journal reported, citing sources familiar with the matter.
Pfizer
Pfizer said on Thursday (Jan 5) that it is exploring several options for the future of its early-stage rare disease and cancer business to focus on “highly effective” drugs and vaccines. Options include partnering with other biotech companies for these drugs or creating a new private company. Pfizer now plans to focus on in-house development of rare disease treatments through technologies such as gene editing.
Southwest Airlines
Voiced by CEO Bob Jordan, Southwest Airlines’ management team says it is focusing on a thorough investigation of traffic violations in December. Southwest Airlines has pledged to cover travel, hotel, meal and rental car expenses for passengers whose flights were canceled last week due to the bitter cold in the United States. So it created a dedicated page for customers to submit return requests and find their luggage.
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Tesla, whose stock price fell 6.11% to $103 in pre-market trading, cut the price of its cars in China for the second time in less than three months. Increasing competition in the struggling Chinese auto market explains the decision. The US carmaker’s prices are now 24% below September levels, Reuters estimates.
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