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US stocks rose late on Friday, helped by gains in materials and industrial shares. Investors seemed to have ignored the pessimism due to the stronger-than-expected November jobs report.
With less than an hour of trading left, the Nasdaq Composite (COMP.IND) has reduced most of its losses and is now down 0.21% up 11,457.79 points. The tech-heavy index still has some ways its 100-day moving averagean important technical level.
The benchmark S&P 500 (SP500) also cut losses and now less than 0.08% at 4,073.23 points. Boeing shares soar (father) on a sales report of 787 Dreamliners for United Airlines (UAL) boosted the Dow (DJI) and helped the blue-chip index climb to the positive zone. It’s a 0.10% higher at 34,430.60 points.
Of the 11 S&P sectors, six are currently trading in the red, with Energy and Technology leading the way in losses. Materials and Industrials gained the most among the gainers.
Non-Farm Payrolls added by 263K, much higher than the 200,000 expected, while the unemployment rate was unchanged. Moreover, average hourly earnings rose 0.6 percent, double forecasts, pressuring the Fed to stay alert to wage pressures and tightening conditions.
Matt Peron, research director at Janus Henderson Investors, told Seeking Alpha: “The most worrisome aspect of this morning’s payrolls report is the pay update.
“Wages are surprisingly steady, which confirms a recent trend. Unfortunately, this is a step back in an improving inflation story. This will be market-related. and while we’re on track to get better than we were a few months ago, we’re not out of the woods.Policy is likely to continue to be restrictive in the short term and the more restrictive, the more pressure on earnings this year. coming,” Peron added.
Rates rallied in the initial reaction to the jobs report, but then pared gains during the session. The yield on the 10-year Treasury note (US10Y) reversed course which has now dropped 3 basis points to 3.50%. 2 year yield (US2Y) increased by 3 basis points to 4.28%. Meanwhile, the dollar index (DXY) seesaw. It is now down 0.18% at 104.53.
Stronger-than-expected jobs data further dampened the euphoria in Wednesday’s stock rally following Federal Reserve Director Jerome Powell’s comments on slowing the pace of rate hikes. All three major indexes ended mixed in the previous day’s session following a Powell-inspired surge, in part due to weak manufacturing data.
Deutsche Bank’s Henry Allen said: “After Wednesday’s spike following Fed Chair Powell’s speech, the rally in risk assets stalled yesterday due to weak US data. United States raises growing concerns about the state of the economy.”
“There are a lot of releases to digest, but in many ways the most notable is the ISM production print, which has fallen into contraction for the first time since May 2020,” Allen added.
On the Fed side today, Chicago Fed President Charles Evans and Richmond Fed President Tom Barkin spoke before the quiet period began.
Among active stocks, semiconductor company Marvell Technology (MRVL) fall after Weak results and instructions. Cybersecurity company Zscaler (ZS) refused though beat and raise noble.
horizon therapy (HZNP) advanced between news related to ongoing acquisition. Rigel (RIGL) spiked above a FDA approves blood cancer drug.
