[Good Morning Market] US Stock Market Closes Mixed... KOSPI Expected to Start Higher

While the U.S. stock market closed mixed amid attention to corporate earnings, the KOSPI is expected to start higher on the 25th.

Traders are working at the New York Stock Exchange.
Photo by Reuters Yonhap News

On the 24th (local time), the New York stock market closed mixed. It started strong on the back of solid corporate earnings and expectations of economic recovery, but was later affected by weak demand in Treasury auctions and price burdens from recent gains.

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 37,806.39, down 99.06 points (0.26%) from the previous session. The large-cap S&P 500 index rose 3.95 points (0.08%) to 4,868.55, marking its fourth consecutive session at an all-time high. The tech-heavy Nasdaq Composite Index closed up 55.97 points (0.36%) at 15,481.92.

Within the S&P 500, telecommunications, technology, energy, and financial stocks rose. During the session, Microsoft (MS) became the second company after Apple to surpass a market capitalization of $3 trillion for the first time ever. Netflix surged more than 10% following strong Q4 earnings last year. AT&T fell about 3% due to earnings below expectations. Analysts Han Ji-young and Kim Ji-hyun from Kiwoom Securities commented, "While growth stock earnings expectations expanded due to Netflix's strong results, the market was mixed amid accumulated profit-taking pressure, solid economic indicators, and rising interest rates."

Morgan Stanley Capital International (MSCI) Korea Index ETFs rose 0.3%, and MSCI Emerging Markets Index ETFs increased 1.1%. Eurex KOSPI 200 futures rose 0.4%. Considering this, the KOSPI is expected to start the day up 0.2?0.4%.

Kim Seok-hwan, a researcher at Mirae Asset Securities, said, "The Q4 2023 and full-year GDP growth rates, along with the February Business Survey Index (BSI), are scheduled to be released today. The market expects Q4 GDP growth to slow slightly to 0.5% from 0.6% in the previous quarter. This would represent an improvement compared to last year and the fastest growth rate since Q3 2022."

He added, "The business sentiment felt by domestic companies continues to deteriorate. According to the BSI released on the 23rd by the Federation of Korean Industries and others, the February outlook recorded 92.3, remaining below the baseline of 100 for 23 consecutive months since April 2022. If the current financial situation persists, corporate burdens are likely to increase further. Expectations for additional government support measures will rise."

The researcher also noted, "There are mixed upward and downward factors today, including a decline in the won-dollar exchange rate, a favorable U.S. economy, a rise in the U.S. 10-year Treasury yield, and a preemptive surge in Netflix shares. The market is expected to show a directional search trend influenced by the earnings of major domestic companies and movements in the Greater China stock markets. Changes in market supply and demand will mainly occur around semiconductors and artificial intelligence (AI)."

Meanwhile, the New York Non-Deliverable Forward (NDF) 1-month won-dollar exchange rate stood at 1,331.42 won, and the won-dollar exchange rate is expected to start down 7 won on the day.