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Trader’s Notes This Week (0831-0904)
1. Adjustments of constituent shares of the Dow Jones index:
On Monday (31) hours before the US stock market, the constituent stocks of the Dow Jones index will be adjusted, Apple’s weight will be reduced to 20.3%, from the highest weighted stock of the Dow Jones index to the 17th largest.
Additionally, Dow Jones will also add three new weighted stocks. Salesforce (CRM-US) will replace ExxonMobil (XOM-US), Amgen (AMGN-US) will replace Pfizer (PFE-US), HoneyWell (HON-US) will replace Raytheon (RTN-US) and, following the adjustment, technology participation in the Dow Jones index will return to 23.1%.
2. The Fed publishes the Economic Beige Book:
On Thursday (3) the Federal Reserve (Fed) will announce the economic Beige Book. The market expects that although the new corona epidemic in the United States is slowing down, the impact of the epidemic on the American economy is huge, so the Beige Book is estimated to affect the American economy. The outlook may not be too rosy.
In response to the boost from inflation and the recovery of employment in the United States, Fed Chairman Jerome Powell announced at the Annual Meeting of the Global Central Bank in Jackson Hole last week that the Fed will tighten the monetary framework and officially adopt the “average inflation”. At the same time, it will comprehensively adjust its strategies to maximize employment and stabilize prices, and pay more attention to boosting the US labor market.
3. The August report on non-farm employment in the United States:
On Friday (4) the US Department of Labor will announce the new non-farm report for August. The market expects the new non-agricultural increase in August to fall by 1,518 million, a slight slowdown from the 1,763 million just added in the previous month; Furthermore, the unemployment rate is expected to fall to 9.9% from 10.2% the previous month.
Aneta Markowska, chief economist at Jefferies, an investment bank, said that the United States is expected to maintain the trend of recovery in employment, but Aneta Markowska believes that it is difficult to accurately predict the data on employment in the face of the impact of the epidemic. .
4. US ISM Manufacturing PMI for August:
On Tuesday (1), the American Institute of Supply Management (ISM) will announce the Manufacturing PMI for August. The market expects the ISM’s August Manufacturing PMI to fall to 54.4, better than 54.2 the previous month, and will continue into the 50th boom. in.
The continued expansion of the ISM Manufacturing PMI also shows that with the help of the Fed’s easing policies, the US economy continues on the path of recovery. Loretta Mester, president of the Cleveland Fed branch, said last Friday (28) Due to the slow economic recovery in the context of the epidemic, the Fed will continue to support the economy.
Meester pointed out that the current economy caused by the new corona epidemic is still continuing, so the Fed still needs to support the economy. It seems that it will take some time to assess the role of policy, but throughout the recovery process, loose monetary policy Very important.
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