Stock market today: Dow, S&P 500 and Nasdaq close at new highs after strong jobs report
The Dow Jones, S&P 500 and Nasdaq Composite closed at new highs on Friday, after the United States created more jobs than expected in October. However, the result was not strong enough to raise concerns that the Federal Reserve was rushing to raise interest rates.
Dow Jones Industrial Average
rose 204 points, or 0.6%, ending the day at 36,327.95 points. Meanwhile, the
gained 0.4% and 0.2%, respectively. Indices rose just after the jobs report was released in the morning, but finished below their intraday highs.
The United States created 531,000 jobs in October, above estimates of 450,000 and above the revised September result of 312,000. The unemployment rate fell to 4.6%. Job gains have been particularly strong in one of the areas most sensitive to Covid-19: leisure and hotels. This sector has created 164,000 jobs.
The result of the job “is really a Goldilocks number,” said Marvin Loh, senior global macroeconomic strategist for State Street. “The labor market is recovering. The Fed will wait [to raise interest rates]. ”
Economists had expected that, when the unemployment benefits linked to the pandemic expired, people would be encouraged to return to work. Investors want to see people getting back to work, which allows for sustainable consumer spending, but the labor market doesn’t heat up too quickly. If this is the case, the Fed may be forced to reduce its bond buying program more quickly or to raise short-term interest rates as soon as possible.
For now, markets aren’t worried that the potential inflation boosted by more people in the workforce will make the Fed more aggressive on rate hikes. The 2-year Treasury yield fell to 0.39%, below its level just before the jobs report.
Falling stocks can be attributed in part to lower long-term bond yields. The 10-year Treasury yield fell to 1.45% after a daily high of 1.54%. The price of the bond increases as the yield falls. This indicates that some might be concerned about slow long-term economic growth and inflation.
In reality, the drop in yield could be a function of the technical characteristics of the market, rather than something economically scary. There are probably “people who are wearing shorts,” said Dennis Debusschere, founder of 22 Research.
Either way, lower yields can scare other market players. “There is clearly a risk that 10-year yields will detect a problem,” Debusschere said, referring to “slower growth”.
Overseas, the pan-European
was flat. that of Hong Kong
Hang Seng Index
Hong Kong’s trade has been hit by renewed fears about China’s heavily indebted Chinese real estate sector. Actions in the developer
Kaisa Holdings Group
(1638.HK) were suspended in Hong Kong after missing payments on wealth products and raising liquidity issues. Units of
(3333.HK), the struggling real estate group at the center of the real estate problems, faces late payments for offshore bond coupons due tomorrow.
Here are seven actions in motion on Friday:
The stock (PINS) gained 5.9% after the company reported earnings of 28 cents per share, beating estimates of 23 cents per share, on sales of $ 633 million, beating expectations of 630, $ 9 million.
The (ABNB) share rose 13% after the company reported earnings of $ 1.22 per share, beating estimates of 72 cents per share, on revenue of $ 2.2 billion, higher than expectations of $ 2.1 billion.
The stock (PTON) fell 35.3% after the company reported a loss of $ 1.25 per share, worse than estimates of a loss of $ 1.07 per share, on sales of 805 million, below expectations of $ 811 million.
The stock (PFE) gained 10.9% after the company said its Covid-19 pill should reduce the risk of hospitalization or death by 89%. It’s better than the Merck pill.
(MRK) fell 9.9%.
The stock (REGN) fell 16.6% and 5.6%, respectively.
Write to Jacob Sonenshine at firstname.lastname@example.org