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S&P 500 ends slightly lower after jobs report

Stock Markets Dec 02, 2022 07:42PM ET
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© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 21, 2022. REUTERS/Brendan McDermid
 
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By Chuck Mikolajczak

NEW YORK (Reuters) - The S&P 500 closed slightly lower on Friday, although major indexes rallied off their worst levels of the day, as the November payrolls report fueled expectations the Federal Reserve would maintain its path of interest rate hikes to combat inflation.

The Labor Department's jobs report showed nonfarm payrolls rose by 263,000, above expectations of 200,000 and wage growth accelerated even as recession concerns increase.

The U.S. unemployment rate remained unchanged, as expected, at 3.7%.

"Wage growth has been in an uptrend since August," said Brian Jacobsen, senior investment strategist at Allspring Global Investment in Menomonee Falls, Wisconsin.

"We will have to see that trend reverse for the Fed to be comfortable with a pause. Until then, they’ll continue to taper towards a pause."

Investors have been looking for signs of weakness in the labor market, especially wages, as a precursor to faster cooling of inflation that will enable the Fed to slow and eventually stop its current rate hike cycle.

Stocks had rallied earlier in the week after Fed Chair Jerome Powell's comments on scaling back interest rates hikes as early as December.

The Dow Jones Industrial Average rose 34.87 points, or 0.1%, to 34,429.88, the S&P 500 lost 4.87 points, or 0.12%, to 4,071.7 and the Nasdaq Composite dropped 20.95 points, or 0.18%, to 11,461.50.

Still, equities ended the session off their lowest levels of the day that saw each of the major indexes tumble at least 1%, with the Dow managing a slight gain.

"If anything, I am actually encouraged by how the market is clawing its way back from the level we were at today. It is another indication the market is looking for at least a seasonal December rally," said Sam Stovall, chief investment strategist at CFRA in New York.

"The market is beginning to look across the valley and say, 'OK, a year from now the Fed will likely be on hold and considering cutting rates.'"

The rate-setting Federal Open Market Committee meets on Dec. 13-14, the final meeting in a volatile year that saw the central bank attempt to stifle the fastest rate of inflation since the 1980s with record interest rates increases.

The major averages notched a second straight week of gains, with the S&P 500 climbing 1.13%, the Dow gaining 0.24% and the Nasdaq rising 2.1%.

Growth and technology companies such as Apple Inc (NASDAQ:AAPL), down 0.34%, and Amazon (NASDAQ:AMZN), off 1.43%, were pressured by concerns over rising rates but pared declines as U.S. Treasury yields eased throughout the day off earlier highs. The S&P 500 growth index declined 0.29% while technology shares were among the worst performing among the 11 major S&P 500 sectors with a fall of 0.55%.

Ford Motor (NYSE:F) Co declined 1.56% on lower vehicle sales in November, while DoorDash Inc 3.38% shed after RBC downgraded the food delivery firm's stock.

Advancing issues outnumbered declining ones on the NYSE by a 1.15-to-1 ratio; on Nasdaq, a 1.35-to-1 ratio favored advancers.

The S&P 500 posted 20 new 52-week highs and no new lows; the Nasdaq Composite recorded 86 new highs and 92 new lows.

S&P 500 ends slightly lower after jobs report
 

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Comments (19)
Kerry Ditto
Kerry Ditto Dec 03, 2022 8:49AM ET
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problem of Fed raising interest rates continually is causing self-fulfilling recession. people anticipating recession, acting like prep for recession, so recession is being realized.
Q Hero
Q Hero Dec 02, 2022 3:11PM ET
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Falls?The scamming market like Dow keep going up lol
Dave Jones
Dave Jones Dec 02, 2022 3:00PM ET
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Nope. Not any more.
Mitchel Pioneer
Mitchel Pioneer Dec 02, 2022 1:42PM ET
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Would you look at that, yet another miraculous intraday "recovery."  Another financial knife in the back of America heading into the weekend.  I think the backs of the US working class is running out of space, as the FRAUD and criminal manipulation continues in broad daylight.
First Last
First Last Dec 02, 2022 1:42PM ET
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intraday "recovery." =/= financial knife in the back of America
Ross Dre
Ross Dre Dec 02, 2022 1:42PM ET
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I feel your sacrcasm. Love it
Ac Tektrader
Ac Tektrader Dec 02, 2022 1:42PM ET
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poor mitch can't seem to make money. until he does the work he never will....
自由 乐趣
自由 乐趣 Dec 02, 2022 1:19PM ET
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Read more
Jamie Kent
Jamie Kent Dec 02, 2022 12:37PM ET
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Jobs data is intentionally misleading, just like CPI and everything else.
PS Srinivas
PS Srinivas Dec 02, 2022 12:37PM ET
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it seems if fed persists with rate hike just to control inflation at the cost of economy it will be suicidal as growing economy is bound to add new jobs. what the reason economist thinking to tame economic growth forcibly
First Last
First Last Dec 02, 2022 12:37PM ET
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The Fed is NOT trying "to tame economic growth".
JIM VETTER
JIM VETTER Dec 02, 2022 12:37PM ET
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correct.. They're trying to stop it completely, if only temporarily. Powell has stated as much. They need unemployment to go up, to the tune of 2 million job losses and he admitted a recession would be necessary to get inflation under control. Inflation is their only concern, as Powell has said many times. Does that sound like he wants economic growth, in the short term? NO
First Last
First Last Dec 02, 2022 12:37PM ET
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JIM VETTER    That's the key takeaway:  "Inflation is their only concern".  Inflation is what the Fed is trying to tame.  If the Fed can tame inflation w/out harming economic growth or employment, it would.
Stan Smith
Stan Smith Dec 02, 2022 12:26PM ET
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It's settled then: the BLS plans on pretending there is no recession until the Fed pushes the economy into a depression.
Ma Lu
Ma Lu Dec 02, 2022 12:11PM ET
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Nasdaq looks into a troublesome next year
Harry J Heinkele
Harry J Heinkele Dec 02, 2022 12:09PM ET
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Hoe many of the added jobs were due to seasonal holiday shopping?
 
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