Preview of US Stock Market | The U.S. non-farm payroll in January fell short of expectations, while the unemployment rate unexpectedly declined. Alibaba (BABA.US) denied rumors of investing in DeepSeek.

1. Before the opening of the US stock market on February 7 (Friday), as of the time of writing, the three major US stock index futures remained mostly unchanged, with the Nasdaq futures down 0.09%, the S&P 500 futures down 0.06%, and the Dow futures up 0.02%. 2. As of the time of writing, the German DAX index fell 0.11%, the UK FTSE 100 index fell 0.18%, the French CAC40 index fell 0.19%, and the Euro Stoxx 50 index fell 0.19%. 3. As of the time of writing, WTI crude oil rose by 0.62%, to $74.75 per barrel. Brent crude oil rose by 0.64%, to $71.06 per barrel. Market News US non-farm payrolls lower than expected, unemployment rate unexpectedly decreases. The seasonally adjusted non-farm employment in the US recorded 143,000 in January, significantly lower than the market expectation of 170,000 and hitting a new low since October last year. The US unemployment rate in January was 4.0%, hitting a new low since May last year, with market expectations remaining at 4.1%. Non-farm payrolls for December were revised up by 51,000 to 307,000. Following the revisions, the total employment gains in November and December were higher by 100,000 than previously reported. The pace of hiring in January slowed down due to wildfires and snowstorms suppressing growth in some industries, while the Federal Reserve signaled a pause in interest rate cuts, posing unfavorable factors to economic growth. However, the US labor market remains healthy, continuing to drive economic growth without causing inflationary pressures. This also helps explain why Fed policymakers, after three rate cuts last year, are not in a hurry to further reduce borrowing costs. "Bloodshed continues"! Tariff storm + tech stock "earnings massacre", over $10 billion in funds flee from US stocks. As of the week of February 5, US stock funds saw the fourth consecutive weekly outflow in five weeks, as President Donald Trumps tariffs heightened political risks for GEO Group Inc and investors became cautious about weak earnings from major tech companies. Lipper's data showed that investors net sold $10.71 billion worth of US stock funds, the largest single-week selloff since December 18, 2024. In comparison, investors net allocated $4.86 billion to Asian funds and $1.88 billion to European funds. Under the influence of political uncertainty at GEO Group Inc, gold futures prices are approaching record highs. Gold futures prices are rising, slightly below historical record highs. Analysts at Deutsche Bank stated that the rise in gold prices is not driven by the usual price drivers - a strong dollar and interest rate expectations - but rather by safe-haven demand during periods of political turmoil. They stated in a report that this particularly reflects the uncertainty surrounding the policies of President Trump. However, the price increase appears exaggerated, and prices may see a correction in the coming weeks. Deutsche Bank also added that they expect spot gold prices to reach $2,700 per ounce by mid-year and $2,650 per ounce by the end of 2025. Bank of America: US stock market's global dominance is waning, recommends going long on Chinese stocks. Bank of America Corp strategists predict that after the US stock market's continuous rise came to a halt in early 2025, its leading edge will continue to diminish. Strategists including Michael Hartnett pointed out that so far this year, the returns of stock markets in Brazil, Germany, the UK, China, and Canada have outperformed the S&P 500 index, as the so-called seven big tech companies failed to provide the driving force they have long provided. They recommend going long on Chinese stocks, as they expect that trade and tech wars will not escalate. In terms of bonds, Bank of America Corp predicts that US Treasury yields will drop to below 4%, as President Trump aims to address government spending issues, prevent spiraling debt levels, and also hopes for Congress to approve his tax reduction plan. The 10-year US Treasury yield falls below 4.50%, possibly opening the door for further declines. LBBW analyst Elmar Voelker stated in a report that the 10-year US Treasury yield significantly fell below the 4.50% level for the first time this year, potentially opening the door for further declines. From a technical analyst's perspective, the decline in yields may signal a bullish signal for bonds. The uptrend in yields appears to have been broken, with the increase in yields starting in the fall of 2024 largely triggered by President Trump's impending election victory. Strong dollar trend unstoppable? UBS Group AG: US economy driving the dollar's "super cycle". President Trump's "America First" trade policy has prompted the US Treasury to investigate currency manipulation. This has brought the issue of a strong dollar back to the agenda, but opinions vary on the source of the strong dollar. UBS Group AG released a research report stating that although the dollar remains the primary global reserve currency, UBS Group AG does not believe this is the reason for the recent sustained appreciation of the dollar. Instead, UBS Group AG believes that the strength of the dollar is largely explained by relative economic performance, a concept often referred to as the "American exceptionalism". Stock-specific News Alibaba Group Holding Limited Sponsored ADR (BABA.US) denied investment rumors regarding DeepSeek. Earlier market rumors indicated that Alibaba Group Holding Limited Sponsored ADR was planning a $1 billion investment in DeepSeek, causing Alibaba's stock price to surge nearly 7% in pre-market trading. However, Alibaba later denied the rumor, with Group Vice President Yan Qiao responding on social media, saying: "As a Hangzhou-based Chinese company, we applaud DeepSeek, but the information circulating about Alibaba's investment in DeepSeek is false." As of the time of writing, Alibaba's pre-market gains have narrowed to less than 4%. Tesla, Inc. (TSLA.US) domestic car sales in January decreased by 11.5% year-on-year. A fourth consecutive month of decline. Data from the China Passenger Car Association shows that Tesla, Inc. sold 63,238 cars manufactured in China in January, a year-on-year decrease of 11.5% and a month-on-month decrease of 32.6%, marking a fourth consecutive month of decline. The delivery volume of China-made Model 3 and Model Y decreased by 32.6% year-on-year. Last month, Tesla, Inc. launched a new version of its popular SUV Model Y in China. It is facing increasing pressure from challengers in the Chinese market.After the failed merger with Honda (HMC.US), it is rumored that Foxconn intends to restart negotiations with Nissan (NSANY.US). Following the news that Foxconn's parent company Hon Hai Precision Industry Co., Ltd. is interested in restarting cooperation talks with the struggling Nissan, Nissan's stock price rose. Previously, the cooperation plan between Nissan and Honda Motor Co., Ltd. Sponsored ADR was announced to be terminated. It is reported that Hon Hai Chairman Liu Yangwei has instructed Hon Hai's Chief Electric Vehicle Strategist, former Nissan executive Guan Run, to actively contact the French car manufacturer Renault (RNLSY.US), which holds about 36% of Nissan's shares, to discuss the possibility of releasing shares. It is understood that last year, Hon Hai explored the possibility of investing in or acquiring Nissan, but temporarily shelved this plan when in December Nissan reached a cooperation agreement with Honda to merge the two brands into the same holding company. This week, Honda and Nissan have confirmed that they are still discussing various options, including the possibility of terminating the cooperation negotiations. According to sources, as Nissan prepares to end negotiations with Honda, the company is looking for new partners, which may open the door for Foxconn to re-engage in cooperation. Pre-market up more than 21%! The social platform Pinterest (PINS.US) beloved by Generation Z exceeded expectations with its performance and outlook, with the number of users surpassing 550 million. The company stated in its earnings outlook on Thursday that the current period's revenue is expected to be between $837 million and $852 million, exceeding the Wall Street analysts' average estimate of $835 million. Profit, excluding certain items, is expected to be between $155 million and $170 million, surpassing the analysts' average estimate of $141 million. Pinterest's app allows users to search for and save images and videos to virtual message boards, and the company also announced fourth-quarter revenue and overall user growth data that exceeded analysts' expectations. Pinterest's total revenue in the fourth quarter increased by 18% year-on-year to $1.15 billion, slightly higher than the analysts' average estimate of $1.14 billion, marking the first time Pinterest has achieved quarterly revenue exceeding $1 billion. The total number of monthly active users for Pinterest reached approximately 553 million, surpassing the analysts' average estimate of 547.4 million users. It is rumored that the truck industry's "Tesla, Inc." Nikola (NKLA.US) is nearing bankruptcy filing, with a market value of $24 billion evaporated. According to sources, electric truck maker Nikola is nearing a bankruptcy filing. The company's stock fell 20% in after-hours trading to $0.60. Nikola is working with Pillsbury Winthrop Shaw Pittman law firm to explore bankruptcy options, including selling or restructuring the company. The company has been struggling to raise funds, and its cash balance is decreasing, with losses of hundreds of thousands of dollars for every truck sold. Nikola stated on Thursday that it is assessing various options, including financing as part of a financial restructuring. However, the company declined to comment on whether it is seeking bankruptcy proceedings. Last month, it was reported that the electric truck manufacturer was exploring various options, including selling parts of the business or the entire company. Important economic data and events forecast: 22:25 Beijing time - Federal Reserve Governor Bowman speaks on bank regulation 23:00 Beijing time - Preliminary Michigan Consumer Sentiment Index for February, Final Wholesale Inventory Month-on-Month for December in the United States 01:00 on the next day Beijing time - Federal Reserve Governor Kugler speaks