Daily Comprehensive Analysis: Diagnosis of Information and Communication Optics Leaders Amidst 3-Year Low Job Openings and Further Bond Yield Decline

The global financial market showed a strong trending sentiment, attempting a valuation re-rating across risk assets, driven by the release of job opening figures clearly indicating a cooling labor market and the subsequent continuous downward stabilization of Treasury yields. While short-term economic cooling signals are strengthening the Federal Reserve's justification for ending monetary tightening, acting as a tailwind for capital markets, news of insider trading from component companies within the high-speed networking and optical communication module value chains is instilling significant confidence in the market. This daily comprehensive analysis interprets the macroeconomic indicators, disclosure data, and technical price trends of key stocks observed over the past 24 hours to describe today's asset allocation direction.

The primary variable adjusting the ebb and flow of macro liquidity is the U.S. Department of Labor's April Job Openings and Labor Turnover Survey (JOLTs) results. Private sector job openings in the U.S. for the month were announced at 8.05 million, significantly lower than the previous month's figure and market expectation of 8.35 million, marking a 3-year low. This indicator, showing that the excess demand in the labor market, which had stubbornly persisted and supported high interest rates, is rapidly retreating to a normalization phase, immediately further fueled the decline in bond yields. The U.S. 10-year Treasury yield slipped further to the 4.28% level, accelerating the direct benefits of falling discount rates to growth assets.

Amidst such favorable macro conditions for technology growth stocks, an SEC Form 4 filing was received, indicating that a board member of Lumentum, a key optical infrastructure component solution provider, directly purchased a large volume of company shares in the open market. Lumentum had recently been navigating a difficult period with its stock price underperforming due to concerns about inventory stagnation in communication components and delayed earnings. However, the bold personal fund purchases by board members, who are most knowledgeable about the company's internal affairs, serve as decisive quantitative evidence that the current stock price level is abnormally undervalued (at a margin of safety price). Such additional acquisition of major shareholder stakes by insiders forms a solid foundation supporting the reliability of future demand for next-generation optical communication module replacement.

In conjunction with these positive macro and micro indicator changes, Lumentum and Coherent, a vertically integrated powerhouse in the optical laser diode sector, both surged by over 4% during today's trading session. Interpreting technical indicators, Coherent broke through its Bollinger Band centerline with accompanying trading volume, entering a new trend expansion phase. Lumentum's 14-day RSI jumped from its previous oversold territory of 32 to 48, technically indicating that short-term oversold noise has been completely resolved. Eaton, a leading power transformer stock, and Vertiv, a thermal management solution provider, also extended their solid gains, backed by further declines in interest rates.

The cooling labor market pressure, driven by a decrease in job openings, is knocking on powerful scenario inflection points that could accelerate the Federal Reserve's H2 pivot schedule. In this process, as real discount rates subtly shift downwards, we must closely monitor the valuation bottoming of optical component and optical network native powerhouses, which are poised for the most explosive profit expansion, and utilize this as an opportunity to solidify our account's growth trend.