(Morning) Following the worsening employment statistics, the Dow fell by 542 Dollars at the end of last week, and the Dollar-Yen also surged to the 147 Yen range | Market Overview | Moneyクリ MoneyX Securities' investment information and media useful for money management.

【US Stock Market】New York Market

NY Dow: 43,588.58 ▼542.40 (8/1)

NASDAQ: 20,650.13 ▼472.32 (8/1)

1. Overview

Last weekend, the US market saw all three major indices decline. The July US employment statistics showed that non-farm payrolls fell short of market expectations, leading to selling pressure on major stocks due to concerns over a softening labor market. The Dow Jones Industrial Average opened trading down 349 points at 43,781 dollars. The Dow experienced a weak start, quickly dropping to 43,340 dollars, down 790 points, marking the day's low. Tech stocks that had announced earnings the previous day, such as Apple [AAPL] and Amazon.com [AMZN], were also sold off, and the Dow continued to trend lower throughout the day, closing down 542 points at 43,588 dollars, marking five consecutive days of decline.

The Nasdaq Composite Index, which has a high proportion of tech stocks, fell by 472 points to 20,650 points. The S&P 500 Index dropped by 101 points to 6,238 points, marking its fourth consecutive decline.

2. Economic Indicators, etc.

The US employment statistics for July showed that the number of non-farm payrolls increased by 73,000 compared to the previous month, falling short of the market expectation of 108,000. The unemployment rate matched market expectations at 4.2%, while average hourly earnings rose by 3.9% year-on-year, exceeding market expectations by 0.2 percentage points. The ISM Manufacturing Purchasing Managers' Index for July was 48.0, down from the previous month and below the market expectation of 49.6.

3. Sector Trends

In the S&P 500 sectoral stock price index, 3 out of the 11 sectors rose. The defensive sectors of healthcare, consumer staples, and utilities saw slight increases of less than 1%, while 8 sectors declined. Consumer discretionary and services dropped by more than 3%, followed by information technology which fell by over 2%. Additionally, 4 sectors including energy saw declines of more than 1%.

4. Individual Stock Trends

The Dow average consisted of 30 stocks, with 11 stocks rising. Sherwin-Williams [SHW] rose by nearly 3%, while four stocks, including Home Depot [HD], saw increases of over 1%. Meanwhile, 19 stocks fell, and Amazon.com [AMZN], which announced its earnings the previous day, dropped more than 8% due to a forecast that fell short of market expectations. UnitedHealth Group [UNH] fell by over 4%, while 3M [MMM] saw a decline of over 3%, and seven other stocks dropped by more than 2%.

Aside from the Dow average component stocks, Reddit [RDDT], which operates a social networking service, was positively received for its second-quarter results that exceeded market expectations and for its solid outlook, resulting in a 17.5% increase. On the other hand, Coinbase [COIN] saw a 16.7% decline after its second-quarter revenue fell short of market expectations.

5. Exchange rates, interest rates, etc.

On August 1st, the US long-term interest rate decreased to 4.22%, down 0.15% from the previous day. On the morning of the 4th, the USD/JPY is fluctuating in the mid-147 yen range.

VIEW POINT: Today's Perspective

The results of the employment statistics, which led to a decline in the US Stock Market last weekend, are expected to result in a sluggish development in the Japanese market as well. The Nikkei average futures are below the critical level of 40,000, and the dollar-yen has appreciated by about 3 yen compared to the two days prior last weekend, which will also create selling pressure on export-related stocks.

During the day, earnings announcements from Mitsubishi Corporation (8058) and Sumitomo Bakelite (4203) are also scheduled, and it is believed that trading will gather around these earnings stocks.

(Monex Securities Financial Intelligence Department Keita Yamaguchi)