[Good Morning Stock Market] "US Stock Market Ends Slightly Up... Focus on Low PBR Stock Changes and Corporate Earnings"

[Image source=Reuters Yonhap News]

Despite hawkish remarks from Federal Reserve (Fed) officials and Treasury Secretary Janet Yellen's mention of risks in commercial real estate, the U.S. stock market closed slightly higher, supported by solid corporate earnings. On the 7th, the domestic stock market is expected to focus on price changes in low price-to-book ratio (PBR) stocks and individual companies' earnings announcements.

On the 6th (local time), the three major U.S. indices closed slightly higher, buoyed by strong corporate earnings despite expectations of a delayed Fed interest rate cut. At the New York Stock Exchange (NYSE), the blue-chip Dow Jones Industrial Average rose 141.24 points (0.37%) to close at 38,521.36. The large-cap S&P 500 index increased by 11.42 points (0.23%) to 4,954.23, while the tech-heavy Nasdaq index gained 11.32 points (0.07%) to finish at 15,609.

Among the 11 sectors within the S&P 500, nine sectors excluding technology and communication all rose. Materials, real estate, and healthcare stocks increased by more than 1%. Hajangkwon, a researcher at Ebest Investment & Securities, stated, "With companies reporting positive earnings and the market digesting Fed officials' cautious stance on interest rate cut expectations, the U.S. stock market closed slightly higher."

The Morgan Stanley Capital International (MSCI) Korea Index Exchange-Traded Fund (ETF) rose 0.08%, and the MSCI Emerging Markets ETF increased by 2.27%. Eurex KOSPI 200 futures fell 0.04%. Researchers Han Jiyoung and Kim Jihyun from Kiwoom Securities forecasted, "Amid the U.S. market's strength and weakness in artificial intelligence (AI)-related stocks, domestic growth stocks are expected to experience increased volatility in supply and demand from early in the trading session. During the session, price changes in low PBR stocks and individual earnings issues from companies such as Hyundai Department Store, NCSoft, and KCC will likely create a stock-specific market."

Meanwhile, the one-month non-deliverable forward (NDF) won-dollar exchange rate in New York stood at 1,325.35 won, with the won-dollar rate expected to start the day down by 2 won.