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Futures rise, Nvidia’s new chip, Boeing – what’s moving markets

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Futures rise, Nvidia's new chip, Boeing - what's moving markets
© Reuters

Investing.com — Wall Street looks set to end the year on a positive note, as traders await next week’s crucial payrolls report. Boeing received some positive news from China, while Nvidia launched a new gaming chip in the important Chinese market.

1. Futures point to more gains as year ends 

U.S. stock futures edged higher Friday, set to end a strong year on Wall Street on a positive note.

By 05:30 ET (10:30 GMT), the contract was up 25 points, or 0.1%, had gained by 5 points or 0.1%, and had risen by 22 points or 0.1%.

The three main indices have benefited from an impressive late rally with the Federal Reserve signaling that its prolonged rate-hiking cycle is at an end and rate cuts were likely in 2024.

The DJIA and are poised to end 2023 over 13% and 24% higher, respectively, with the latter less than 0.5% off its highest closing level, which was set in January 2022. The is on course to record a gain of over 44%, which would be its biggest annual increase since 2003.

2. Nvidia launches new gaming chip for China

Nvidia (NASDAQ:), the U.S. chipmaker, has launched a new version of a gaming chip designed to comply with U.S. export controls targeting China.

This chip is the first released by the company since export rules unveiled by the Biden Administration in October meant artificial intelligence chips it created for the Chinese market were blocked for sale.

Nvidia has been one of the year’s main stars, benefiting from the surge in interest in artificial intelligence, resulting in it joining an elite club of U.S. companies with a $1 trillion market value.

Nvidia has commanded more than 90% share of China’s $7 billion AI chip market, and the U.S. curbs have created concerns that it could lose market share to domestic firms.

3. December payrolls looming large 

The U.S. stock markets have enjoyed a strong end to the year, benefiting from the belief that the Federal Reserve will start cutting interest rates in 2024, leading to a so-called ‘soft landing’.

Economic growth has cooled and inflation has eased, but the economy has shown little evidence that months of tighter monetary policy will result in a severe downturn.    

Key to whether this mindset will continue will be the health of the U.S. jobs market into the new year.

Data released on Thursday showed that the number of Americans filing for unemployment benefits rose by 12,000 last week to 218,000, indicating the labor market continues to cool in the year’s fourth quarter.

However, most eyes will be on next week’s December report, with the U.S. economy expected to have added 158,000 jobs in December versus 199,000 in November. 

4. Boeing’s 737 MAX fly again in China

Boeing (NYSE:) passed another important milestone Friday, after the U.S. plane manufacturer confirmed that all of its 737 MAX jets operated by Chinese carriers are now back in service, following the global grounding in 2019.

The company’s best-selling model was grounded after a couple of fatal crashes more than four years ago. Although it generally returned to service in late 2020, Chinese airlines were late to the party, only starting to fly them again in January 2023.

This restart would benefit the company greatly as it would allow the carrier to offload dozens of planes in its inventory.

5. Oil up, but heading for hefty annual losses

Oil prices edged higher Friday, rebounding after the previous session’s sharp losses, but were set to end the year near the lowest levels since 2020 when the pandemic sent prices spiralling lower.

By 05:30 ET, the futures traded 0.1% higher at $71.83 a barrel, while the contract climbed 0.3% to $77.39 per barrel. 

Prices dropped around 3% on Thursday as major shipping firms began returning to the Red Sea, easing concerns about supply disruptions through this key region.

Helping the prices recover was the U.S. reporting a much larger-than-expected draw in crude inventories, with stockpiles dropping by 7.1 million barrels in the week ended Dec. 22.

That said, the crude benchmarks are on course to end the year around 10% lower as production cuts by a number of major producers have proved insufficient to prop up prices, with the slowing global economy and a series of aggressive interest rate hikes to combat soaring inflation weighing.

 

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Palestinians say Israeli strike killed 22 in shelter, army says militants hit

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By Dawoud Abu Alkas and Nidal al-Mughrabi

GAZA/CAIRO (Reuters) -Palestinians said an Israeli strike killed at least 22 people in a school sheltering displaced people in southern Gaza City on Saturday, while the Israeli military said the attack targeted a command centre of militant group Hamas.

The Gaza health ministry said most of those killed were women and children. The Hamas-run government media office said 13 children and six women were among the dead.

The military said it hit a Hamas command centre embedded in the compound that previously served as a school, repeating an accusation that the group uses civilian facilities for military purposes. Hamas denies that.

Reuters footage from the site showed blasted walls, wrecked and burnt furniture, and holes in the ceiling of one room as people tried to salvage what they could of belongings.

“The women and their children were sitting in the playground of the school, the kids were playing, and suddenly two rockets hit them,” said one witness Said Al-Malahi.

Some of the dead were wrapped in blankets and carried away on donkey carts, as ambulances transferred other bodies.

“I couldn’t take it, I did not see a single man that is injured, it was all women and children, let the Arab countries rejoice, let them rejoice and clap for (Israeli Prime Minister Benjamin) Netanyahu and the United States of America,” said another eyewitness, Ahmed Azzam, bitter that regional neighbours were not taking a tougher line against Israel.

MEDICS KILLED

In Rafah, in the southern Gaza Strip, the Gaza health ministry said four health workers were killed by an Israeli strike that hit ministry warehouses. Ambulance crews could not reach the dead or treat the wounded, it added.

In a statement, the Israeli military said forces, operating in Rafah since May, have killed dozens of militants in recent weeks and dismantled military infrastructure and tunnel shafts.

Israel’s demand to keep control of the southern border line between Rafah and Egypt has been a major sticking point in international efforts to conclude a ceasefire deal.

Hamas says it is focused on an agreement to end the war and get Israeli forces out of Gaza, while Israel says the war can only end once Hamas is eradicated. Another sticking point has been the specifics of an exchange of Israeli hostages for Palestinian prisoners held by Israel.

© Reuters. Palestinians inspect a school, which was sheltering displaced people, after it was hit by an Israeli strike, amid the Israel-Hamas conflict, in Gaza City, September 21, 2024. REUTERS/Dawoud Abu Alkas

This war in the decades-old Israeli-Palestinian conflict was triggered on Oct. 7 when Hamas attacked Israel, killing 1,200 people and taking about 250 hostages, according to Israeli tallies.

Israel’s subsequent assault on the enclave has killed more than 41,000 Palestinians, according to the local health ministry, and displaced nearly the entire 2.3 million-strong population.

(Reporting and writing by Nidal al-Mughrabi; Additional reporting by Dawoud Abu Alkas in Gaza, Adam Makary in Cairo and Ali Sawafta in Ramallah; Editing by Andrew Heavens and Andrew Cawthorne)

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Trump to visit North Carolina as scandal swirls around Republican ally

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By James Oliphant

(Reuters) – Republican presidential candidate Donald Trump will not be joined by his party’s embattled pick for North Carolina governor when he visits the critical electoral state on Saturday, the Trump campaign said.

Trump previously endorsed Mark Robinson, who was the subject of an explosive CNN report this week that he once called himself a Black Nazi and proposed bringing back slavery in comments posted on a pornography website. 

Robinson, the state’s lieutenant governor, denied the allegations and has said he will remain in the governor’s race. His campaign could not be reached for comment.

Some Republicans fear his candidacy in one of the country’s highest-profile down-ballot races this year could damage Trump’s chances in the battleground state, where polls show Trump essentially tied with Democratic rival Kamala Harris ahead of the Nov. 5 election.

Ahead of Trump’s afternoon rally in Wilmington, North Carolina on Saturday, the Democratic National Committee launched new advertising across the cities of Raleigh, Charlotte and Greensboro tying the former president to Robinson. 

The billboard ads show a photo of the two men together, along with direct quotes from Trump previously calling Robinson an “outstanding person” and an “incredible gentleman.” 

The Harris campaign also began running a TV ad in the state on Friday featuring Trump’s past praise for Robinson.  

In March, Trump called Robinson “Martin Luther King on steroids” after Robinson delivered remarks in Greensboro, and Robinson appeared at a Trump event as recently as last month. Robinson would be the state’s first Black governor if elected.  

Robinson has a history of inflammatory rhetoric, at times referring to Muslims as “invaders” and calling gay and transgender people “filth.” He has made comments denying the Holocaust. 

Trump has yet to address the latest allegations against Robinson. One Trump adviser, who asked not to be named, said Trump should stay silent and not fan the controversy.

“Ignore it, and let it die,” the adviser said.

Trump’s campaign did not respond to a request for comment.

Harris’ campaign and its allies have made a significant investment in North Carolina, including two stops by the vice president last week. A Democratic presidential candidate has not won the state since 2008, but voters elected Democrat Roy Cooper as governor in 2016 and 2020. 

Robinson had been trailing his opponent, Democrat Josh Stein, even before the CNN report, suggesting that he could be a drag on Trump’s chances in the state if some disaffected Republicans stay home on Election Day or defect to Harris. 

Chris Cooper, a professor of political science at Western Carolina University, said in a state that Trump won by just 1.3 percentage points in 2020, the Robinson scandal could damage Republicans’ chances up and down the ballot in November, including Trump’s. 

“If some people feel that the Republican brand is stained enough that they’d rather stay home, then that’s going to matter,” Cooper said. “It doesn’t take a big difference to flip the state.”

© Reuters. A Secret Service officer stands next to bulletproof glass on a stand from which Republican presidential nominee and former U.S. President Donald Trump will hold his campaign rally in Wilmington, North Carolina, U.S., September 21, 2024.  REUTERS/Carlos Barria

Thom Tillis, a Republican U.S. senator from North Carolina, responded to the allegations against Robinson by telling voters on X that “we must focus on the races we can win,” citing the presidential contest but omitting the gubernatorial vote.

“If Harris takes NC, she takes the White House,” Tillis wrote. “We can’t let that happen.” 

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GM to begin laying off about 1,700 workers at Kansas plant, WARN notice shows

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(Reuters) – General Motors (NYSE:) will begin laying off 1,695 workers at its Fairfax Assembly plant in Kansas, the company said in a Worker Adjustment and Retraining Notification (WARN) notice earlier this week.

The first of two rounds of layoffs will begin Nov. 18 and will include the temporary layoff of 686 full-time workers and the termination of 250 temporary employees, Automotive News reported on Saturday citing a company filing to the state of Kansas.

Starting Jan. 12, 759 full-time workers will be temporarily laid off, the report added.

GM did not immediately respond to a Reuters request for comment on the details of the latest layoffs.

© Reuters. FILE PHOTO: The new GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan, U.S., March 16, 2021. .  REUTERS/Rebecca Cook/File Photo

Earlier in May, GM had said that it would pause production of the Cadillac XT4 after January 2025 in Kansas, resulting in layoffs of production employees until production resumes in late 2025 for both the Bolt EV and XT4 on the same assembly line.

The company had also said in August that it was laying off more than 1,000 salaried employees at its software and service units worldwide.

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