The economic indicators seem to be bad overall, but they hold up well. If the flow does not collapse, it will go up well again.

NASDAQ 16,274(+1.14%)
10-year U.S. bond interest rate 4.1850% (-1.67%)
Dollar Index 103.890p (-0.20%) NDF 1,335 won (+1 won)

PCE #Dell #NewYorkCommunityBankcorp #Report #ISMManufacturingPMI

The ISM manufacturing PMI was 47.8, down slightly from 49.1 the previous month. It fell below the forecast of 49.5, pushing back expectations of a recovery for the manufacturing economy. The University of Michigan consumer sentiment index also came in at 76.9, lower than the preliminary reading of 79.6. The manufacturing economy and consumer sentiment have slowed, but the market is interpreting it positively. The slowing economy has pushed up the stock market, raising expectations that the Fed will cut interest rates.

January’s core PCE price index, released last Thursday (local time), met expectations. It was slightly higher than the previous month, up 0.4%, but it did not shock the market as it met expectations. The analysis is that the figures are falling year-on-year and considering the seasonal factors of January, it is not a situation to be concerned about.

Even the Nasdaq Composite hit a historic high. It was the highest record in two years and three months since November 2021. Dell’s stock price soared 30% after the earnings announcement, and semiconductor-related stocks such as AMD and Nvidia were super strong. Dell said orders for AI servers increased 40% as AI shipments soared. Expectations for a falling water effect AMD’s stock price soared 15% during our break.
Shares of New York Community Bancorp (-30%), which raised concerns about commercial real estate, plunged once again. It plunged when it issued a correction of its earnings report, saying there was a serious weakness in internal control, but it did not affect the market the previous day, but it seems likely to act as a detonator for the market in the long run.

The market is rising, centering on semiconductors. However, our stock market is not keeping up with the trend, and I think it is Samsung Electronics’ influence. Among semiconductors, the stock prices of SK Hynix and companies with post-process small managers are on a high note. We need to pay attention to semiconductor companies equipped with front-end process, post-process packaging, or new items rather than legacy semiconductor companies.

China’s two sessions will be held in March. China’s stock market has risen a lot recently, and it is worth paying attention to whether it will give upward momentum. This is because our economy will revive only when China survives.

I hope you get off to a hot start on the first trading day of March. Thank you!