The Day at a Glance | November 1 2024

The Top

• October´s employment figures in the US were weak due to hurricanes and the Boeing strike.

• Today, October´s ISM Manufacturing Index will be released in the US, with consensus estimates forecasting 47.6 points, slightly higher than the previous month’s 47.2 points.

• Mexico’s unemployment rate stood at 2.9% in September 2024, remaining unchanged from the same period last year and below market expectations of 3.0%.

• Risks to Asia’s economy have increased due to escalating trade tensions, China’s real estate sector issues, and the possibility of further market turmoil, according to the International Monetary Fund.

• On Friday, Japan’s government reduced its GDP growth forecast for the current fiscal year, citing weak exports as a drag on a fragile economic recovery.

• On Friday, oil prices rose by 2% following reports that Iran was preparing a retaliatory attack on Israel from Iraq in the coming days.

Economic Environment

October´s employment figures in the US were weak due to hurricanes and the Boeing strike. The Bureau of Labor Statistics (BLS) released October´s employment data, showing an increase of only 12,000 jobs—well below the consensus expectation of 113,000 and the 223,000 jobs added in September. According to the BLS, employment data was impacted by Hurricanes Helene and Milton and the Boeing strike, with the latter estimated to have cut around 44,000 jobs for the month. Additionally, job creation for August and September was revised down by a total of 112,000 jobs for both months. Meanwhile, the unemployment rate set at 4.1% in October, in line with market expectations and September´s figure. Annual wage growth for October stood at 4.0%, slightly above September’s 3.9% and in line with consensus expectations. Overall, October’s employment figures were poor, shaped by extreme weather events and a strike at one of the world’s largest aerospace companies. Despite these factors, the unemployment rate remained unaffected, suggesting the labor market might still be resilient.

Markets and Companies

US indices kicked off November with gains, driven by strong results from Amazon and Intel. In this context, the US employment report was also released; 12,000 jobs were created in October, impacted by adverse weather conditions and strikes in the manufacturing sector, while the unemployment rate stood at 4.1%, in line with estimates. European markets are also up, with the Stoxx 600 index up 0.84%, led by the oil and gas sector. This positive sentiment follows Thursday’s bearish session, during which European indices closed October with losses. In Asia, markets declined, with Japan’s Nikkei 225 extending its losses after the Bank of Japan’s decision to maintain its rate at 0.25%. However, China’s Caixin Manufacturing PMI increased to 50.3, indicating expansion in the sector.

In the commodities market, oil prices rose due to heightened tensions in the Middle East, following reports of a potential Iranian attack on Israel from Iraqi territory. Additionally, OPEC+ may delay its planned production increase. Meanwhile, gold and silver prices rebounded following Thursday’s profit-taking.

Yields on US 2-year and 10-year Treasury bonds are at 4.12% and 4.27%, respectively.

In Mexico, the IPC is down and is trading at 50,597.9 points, while the exchange rate stands at 19.96 pesos per dollar after closing at 20.04 yesterday. 

América Móvil has consolidated ClaroVTR in Chile, resulting in a controlling stake of 91.62% for Amx, while Liberty Latin America Ltd. will continue to own the remaining 8.38%. This transaction will enable greater market penetration in Chile.

Corporate News

• Amazon reported better-than-expected results, driven by its cloud and advertising segments, along with 19% year-over-year growth in Amazon Web Services.

• Semiconductor company Intel reported higher-than-expected sales ($13.3 billion vs. $13.2 billion estimated), leading the market increase its share price at market open. 

• Boeing proposed a new offer to the union, including a 38% wage increase over the next four years, in an effort to end the seven-week strike.

• Apple reported 6% growth in total sales, surpassing expectations; however, net income was impacted by an extraordinary tax charge in Europe.