Giant Companies are In Stress

Happy Monday, dear traders! We hope that you’re ready for this new trading week! Let’s see what has happened lately.

Today’s events:

Activision Blizzard earnings report

NFP shakes the USD

The US Bureau of Labor Statistics reported strong gains in hiring and wages in October despite rising unemployment. It created a mixed picture as Federal Reserve officials, debating how long their campaign to curb higher inflation will continue.

The number of non-farm payrolls increased by 261,000 last month after being revised up to 315,000 in September. The unemployment rate rose 0.2 percentage points to 3.7%, more than forecast as participation declined. The average hourly wage increased in October compared to the previous month.

The report says demand for workers remains robust despite rapidly rising interest rates and a bleak economic outlook. Layoffs, although on the rise, are still historically low, and competition to fill millions of vacant positions has led to wages rising rapidly.

The USD dropped after the release. The US Dollar index has lost almost 2400 points and still is staying at the lower level.

Other important news:

Meta Platforms is planning massive staff cuts, approximately a few thousand employees. Previously, similar initiatives were made by Twitter, Tesla, and many other companies.
The US switched to winter time. Stock trading will begin at 17:30 MT time.
Oil fell as traders feared that China's Zero Covid policy would delay the economic recovery and undermine demand. XBRUSD is 97.67.
Investors’ confidence remained on edge after Apple Inc. said it planed to produce at least three million fewer iPhone 14 phones this year.
Deputy Secretary of the Treasury Adeyemo will visit France, the UK, and Belgium from November 7 to 9, discussing sanctions against Russia and an oil price limitation.
Of the 430 companies in the S&P 500 that have reported quarterly earnings so far, nearly a quarter have fallen short of expectations.
Bitcoin mining difficulty has decreased by 0.2%. Bitcoin mining difficulty, which changes roughly every two weeks, is a measure of how hard a miner has to work to validate transactions in a block to add it to the blockchain or "mine" bitcoins.

Have an amazing day!

FBS Analyst Team

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