Manufacturing activity in China contracted for a fourth straight month in January, an official factory survey showed on Wednesday, suggesting economic momentum was flagging at the start of 2024. Shanghai Composite and Hengseng Indexes are down 1.48% and 1.39% respectively. Shanghai Composite has been on a downtrend since 2021 high. Weakness in Chinese economy may eventually negatively impact economy of the world.
Federal Reserve is to make interest rate announcement at 11AM West Coast Time today. No change in interest rate is widely expected consensus. January Chicago PMI dipped to 46.0 vs. 48.0 and 47.2 in December (revised from 46.9). Treasury ETF TLT is up 0.90% and 10 Year Yield (TNX) is down to 3.95%.
As expected, sell on news happened after tech earnings. Nasdaq Composite sink after GOOG -6.31%, MSFT -1.29% and AMD -3.9% 's earning reports. GOOG reported holiday season advertising sales below expectation and projected higher spending this year. MSFT is forcasting rising costs to develop new artificial intelligence features that eclipse a better than expected earnings. AMD's Q1 revenue forecast and a boosted projection for AI processors by $1.5 billion failed to meet expectations. After tech heavy Nasdaq 100 index ETF QQQ surged 48% in the past 12 months, it's time to have a correction. More downside action in tech stocks is likely. There are more worries tomorrow as AMZN, META and AAPL report their earnings.
After moving up 5 days in a row, Bitcoin is consolidating around $43000. It may start to move up again if 43000 holds. Mining stocks are steady.
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