The Day at a Glance | March 8 2024

The Top

*In February, the non-farm payroll grew by 275,000 jobs, exceeding the market’s estimated 200,000.

*On Thursday, President Joe Biden presented his arguments for reelection in a passionate speech where he accused Donald Trump of threatening democracy, yielding to Russia, and obstructing a bill to address immigration issues in the United States.

*ECB officials align in support of potential interest rate cuts in the coming months following a larger-than-anticipated drop in inflation.

*The Bank of Japan leans towards abandoning negative interest rates in March.

*The U.S. stock market is operating with downward movements. 

Economic environment

In February, the non-farm payroll grew by 275,000 jobs, surpassing the market’s estimated 200,000. The Bureau of Labor Statistics (BLS) released employment data for the second month of 2024, highlighting strong job growth in February at 275,000, above the twelve-month average of 230,000. Job creation occurred in the healthcare, government, restaurant, bar, social assistance, and transportation sectors. Additionally, the BLS revised job creation downward for December and January by a total of 167,000 jobs for the two months. On the other hand, it was reported that the unemployment rate stood at 3.9% in the second month of the year, up from January’s 3.7%. Private sector wage growth increased by 4.3%, slightly below the 4.4% recorded a month earlier and in line with the months from October to December (4.3%). In summary, U.S. employment data showed a labor market that is beginning to exhibit less tightening, especially with the rise in unemployment.

Markets and companies

The U.S. stock market is operating with downward movements, reacting to the release of the February non-farm payroll figures, which showed the creation of 275,000 jobs, exceeding the consensus expectations of 198,000. Meanwhile, the unemployment rate rose to 3.9%. The strength in job creation, coupled with Jerome Powell’s remarks earlier in the week before Congress, supports the idea that a clearer indication of the start of the interest rate reduction cycle may not be apparent until the second half of the year. In Asia, stock markets closed with gains, while in Europe, there were mixed movements, with investors closely monitoring the employment data in the U.S. In the bond market, the yield on the 10-year Treasury bond experienced a slight retreat, settling at 4.07%, assimilating the employment figure release. In commodities, oil prices were trading lower, with Brent at 82.5 dollars per barrel and WTI at 78.4 dollars per barrel. Gold prices were on the rise, reaching 2,176.75 dollars per ounce. In Mexico, the IPC futures were trading higher, standing at 55,154.0 points. Regarding the exchange rate, the peso was quoted at 16.82 pesos per dollar, after closing at 16.88 yesterday. It reached a peak of 16.89 in the early hours. The exchange rate reacted to the downside after the U.S. employment figures were released.

Corporate news

*Costco reported quarterly results below expectations, even though the company recorded an 18.4% growth in online sales.

*Rivian’s stocks saw an upturn after announcing three new electric vehicle models. Additionally, the company indicated that by pausing the construction of a plant in Georgia, it would be saving around 2 billion dollars.

*Gap reported better-than-expected earnings by consensus, highlighting that the Old Navy brand saw growth for the first time in a year.