2.2.24: Meta Up 20% Following Beat, Dividend Initiation, and $50bn Buyback

For Public Readers: Weekly Key U.S. and China brief market notes by Larry Cheung's Analyst Staff Team for our Public Email List

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Feb 03, 2024

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In our emails, we will provide the following coverage points:

Brief Overview of U.S. & China Markets
Macro Chart in Focus
U.S. & China Upcoming Economic Calendar
Chart That Caught Our Eye

U.S and China Markets Brief Snapshot 🇺🇸 🇨🇳

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S&P 500 Index: 4958.61

KWEB (Chinese Internet) ETF: $23.19

Analyst Team Note:
Meta's shares rose over 20% following a report of tripled fourth-quarter profits and the announcement of its first-ever dividend.
With a 25% revenue increase to $40.1 billion and net income surging to $14 billion, Meta exceeded analysts' expectations and forecasted higher first-quarter sales.

Macro Chart In Focus

Analyst Team Note:
The US labor market showed unexpected strength in January, with companies adding 353,000 jobs, the most in a year, defying predictions of a cooling labor market and delaying expectations for Federal Reserve rate cuts.
This surge in hiring, alongside upward revisions to December's figures and the entire 2023's hiring data, suggests a reaccelerated economic activity that could postpone any easing of monetary policy.
Wage growth also saw a significant increase, partly influenced by weather-related disruptions, which might reverse in the following month. Despite high-profile layoffs, the overall labor market remains robust, with unemployment steady at 3.7% and strong participation rates.

Upcoming Economic Calendar

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U.S Economic Calendar (Upcoming Data Points)

China Economic Calendar (Upcoming Data Points)

Analyst Team Note:
Futures contracts tied to the Federal Reserve's March meeting significantly decreased the probability of a 25bps interest rate cut to approximately 15%.
Additionally, the contracts for the May meeting adjusted their expectations, no longer fully anticipating a rate cut, a shift from their previous position held for over a month.