Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Jobless claims, Costco, Broadcom results, China COVID - what's moving markets

Economy Dec 08, 2022 06:59AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
GOOGL
-2.01%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
COST
-0.19%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LCO
-1.01%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ESH3
-0.64%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-0.89%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
1YMH3
-0.17%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Geoffrey Smith

Investing.com -- The U.S. releases weekly jobless claims into a market spooked by labor market tightness, Costco, Lululemon, and Broadcom announce earnings. China's rally pauses for breath as investors switch their focus to the risk of the COVID-19 virus spreading and Vladimir Putin returns to rattling his nuclear saber. Here's what you need to know in financial markets on Thursday, December 8th.

1. Jobless claims to cast light on labor market tightness

Normally when weekly jobless claims feature in this slot, it’s a sign of a quiet day ahead. And that’s probably true this time around too, but last week’s labor market report has kept the tightness of the labor market at the top of the agenda.

That’s because labor market concerns are at the heart of this week’s risk-off market movements – the U.S. is running out of workers and that has pushed labor costs up across the board, keeping the upward pressure on inflation. U.S. Inc’s traditional answer to that over the last 30 years – outsource more to China – is now no longer an option, of course.

Analysts expect initial claims for benefits to have risen to 230,000 keeping a slow but nonetheless clear upward trend intact. Continuing claims are expected to have stayed more or less flat at 1.60 million.

2. One fraud trial ends, another begins

As one high-profile fraud trial ends, another one begins.

Wirecard founder and former CEO Markus Braun went on trial along with two other former executives in Munich Thursday, in what is Germany’s biggest-ever fraud trial.

The trial, which is expected to run over a whole year, has already led to upheaval at the regulators who oversee Europe’s largest economy.

On Wednesday, meanwhile, a U.S. judge sentenced Ramesh Balwani, the former president of the fraudulent blood-testing group Theranos, to nearly 13 years in prison. The sentence will make for an interesting yardstick if any of the figures behind this year’s house-of-cards collapse in crypto ever generates fraud trials in the U.S.

3. Stocks eke out modest gains in premarket; Costco, Broadcom results due later

U.S. stock markets are struggling to get over the gain line again, despite three straight days of losses so far this week.

By 06:25 ET, Dow Jones futures were flat, while S&P 500 futures and Nasdaq 100 futures eked out a meager 0.2% gain. The Dow had held its own on Wednesday, while the S&P and Nasdaq lost a modest 0.2% and 0.5%, respectively, suggesting that the selloff was losing momentum.

Stocks likely to be in focus later include Alphabet (NASDAQ:GOOGL), which is reportedly merging its Waze and Maps divisions in an effort to cut costs, one of the first signs that pressure from activist investors is starting to generate results at the company. Also in focus will be Tesla (NASDAQ:TSLA) after Bloomberg reported that the banks holding Twitter’s buyout debt are looking at swapping it for a new margin loan secured against Elon Musk’s holding in the car company.

Costco (NASDAQ:COST), Lululemon (NASDAQ:LULU), and Broadcom (NASDAQ:AVGO) all report earnings after the bell.

4. Chinese rally halts on fears of virus spread

The rally in Chinese markets stalled as focus shifted from the announced relaxation of COVID-19 restrictions to concern about how the country will cope if the disease spreads again.

Official case counts have dropped sharply in the last week, but the relaxation of testing requirements means that a higher proportion of cases is likely to go unregistered in the short term. That increases the importance of anecdotal evidence, such as a Financial Times report that the country is running short on fever medicines.

The FT quoted local health officials as saying that pharmacies in the district of Beijing where the recent COVID outbreak has been concentrated have been emptied of basic medicines such as ibuprofen and paracetamol. FT modeling suggests that a winter wave of COVID could kill as many as 1 million people.

5. Putin returns to saber-rattling; oil rises

Another factor weighing on risk assets in overnight trading has been fresh comments about the risk of nuclear war by Russian President Vladimir Putin.

“Such risks are rising, it would be wrong to hide that,” Putin said in his first comments on the subject since the G20 condemned the use of nuclear threats at its summit last month. However, Putin added that Russia would not use such weapons first.

His comments came two days after Ukrainian forces apparently struck military targets deep inside Russia using drones.

Oil prices staged a modest bounce overnight as delays to shipments through the Bosporus Strait put a floor under the spot market. U.S. crude futures were up 1.7% at $73.22 a barrel, while Brent was up 1.0% at $77.97 a barrel.

Jobless claims, Costco, Broadcom results, China COVID - what's moving markets
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (10)
Fussin Ahmed
Fussin Ahmed Dec 08, 2022 12:21PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hussain Ahmed
Kerry Ditto
Kerry Ditto Dec 08, 2022 11:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
some profit taking is obvious, but it is not to get off the train. when it leaves town, it will be gone.
Hank Williams
Hank Williams Dec 08, 2022 10:22AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Great opportunity to sell into.
Bruce Adamic
Bruce Adamic Dec 08, 2022 8:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The bearS are and will be on control for some time
志彬 吳
志彬 吳 Dec 08, 2022 8:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
go up! nas
Kerry Ditto
Kerry Ditto Dec 08, 2022 8:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
massive Xmas rally is emerging. Xmas pivot rally.
Tilak Mundu
tluck Dec 08, 2022 8:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
nothing will stop market its bull run under bearish shadow
Kerry Ditto
Kerry Ditto Dec 08, 2022 8:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
highly likely powell would pivot starting next week, emerging mkt bull run suggests.
Michael Rhone
Michael Rhone Dec 08, 2022 8:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No pivot till inflation rate is under fed rates
Tru Gfu
Tru Gfu Dec 08, 2022 7:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
republicans claim to be tough on crime...but their push for deregulating everything always leads to massive financial and fraud crimes. white collar crime by white people they do nothing about. no surprise. their leader is a repeat offender and mobster.
Nick Burns
Nick Burns Dec 08, 2022 7:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
crime is ramped in all races ...it's not about race ...it's about access and power ... someone has access and feels entitled generally crime will follow
James Johannsen
James Johannsen Dec 08, 2022 7:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
both parties have been pushing big pharma and military industrial complex so both need to go
ido furini
ido furini Dec 08, 2022 7:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nick Burns  hai pienamente ragione basta guardare a casa nostra la juve per esempio con il'eccesso di potere delle famiglia agnelli pensa di fare il bello e il cattivo tempo sia per quanto riguarda falso in bilancio con la società quotata in borsa sia sul lato giudiziario, buona serata
Steves View
Steves View Dec 08, 2022 7:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Question I have to ask. Is China experimenting on own People?. Is this prelude to (CWF). Chemical War Fare?. Since protest , Could very well be.
Victor Ayeni
Victor Ayeni Dec 08, 2022 7:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
outrageous
TheEnd IsNigh
TheEnd IsNigh Dec 08, 2022 7:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China doesn't actually care about COVID. It's an excuse for implementing extreme control mechanisms on its population.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email