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U.S. stocks erase losses after big January jobs number

Published 02/03/2023, 09:41 AM
Updated 02/03/2023, 11:25 AM
© Reuters.

© Reuters.

By Liz Moyer 

Investing.com -- U.S. stocks recovered earlier losses on Friday after surprisingly strong job growth in January.

At 11:22 ET (16:22 GMT), the Dow Jones Industrial Average was up 68 points or 0.2%, while the S&P 500 was down 0.1%, and the NASDAQ Composite was flat. All three indexes started the day falling after the jobs report.

Rather than cooling off, new data out this morning showed the economy added far more jobs than expected in January. The Labor Department said the economy added 517,000 nonfarm payrolls, a reversal of a four-month trend of slowing gains. Analysts were expecting 185,000, the slowest job growth in nearly two years. What’s more, December and November job numbers were both revised upward.

The unemployment rate ticked down 3.4% in January from 3.5% in December rather than ticking up to 3.6% as expected. Joblessness is now at a 53-year low.

The jobs numbers come after the Fed raised interest rates by a quarter of a percentage point on Wednesday, with Chair Jerome Powell signaling the central bank isn't done with rate hikes.

But the market has been betting there is an end in sight. Futures traders mostly agree that there will be another quarter-point hike in March, according to the CME FedWatch tool. But as the Fed gets closer to its target terminal rate somewhere around 5% or just above, it is expected to pause its rate increases.

Earnings are also adding to the market's movement. Alphabet Inc. Class C (NASDAQ:GOOG) shares fell 0.8% after missing expectations. Apple Inc. (NASDAQ:AAPL) stock reversed earlier losses to rise 3.5% after iPhone sales disappointed. Starbucks Corporation (NASDAQ:SBUX) stock fell 2.7% after weak international demand.

 

Latest comments

mega rig job going on
The Algos keep mixing it up. As a rule of thumb, when trading options you've got to make fast hits and get out! Today, Algos are reinforcing their basic principles. Don't short the market and buy the dip. I got shafted by the Algos today. Bought QQQ puts yesterday afternoon. At market close they were worth 5.55 This morning QQQ was down 6 dollars from yesterday afternoon and those options only paid 5.80 They're trying to break our bad habits. A huge market dump is coming, but after proper conditioning, we'll all sell our puts early in the session and miss windfall profits. What a Scam!
fentanyl Joe said everything is wonderful,it going to reflect this for some time ask Nancy she is a trading genius!
Do you trade like this, guys? With your ideologies? Well, take a step forward, stop talking and do your bets.
But doesn't this increase the chance of more and bigger FED rate hikes? So stocks should be plunging then?. I guess when stocks are artificially pumped up any story spin will do as justification. Its a complete inconsistent joke
SEC investigation to today's nasdaq buying manipulators. They breaks the rule.
US economy booming will zoom to 35k today with good numbers
Cash to equities not over.
Earnig shock, even after non farm shock, US 2y and 10y bond fall sharply. But Nasdaq is up? Are you kidding me? You cheating manipulators.
Another day of the scam market. Terrible earnings from the big companies, and joblessness at a low of 50 years, yet the market rebounds 2% on the Nasdaq.
not any more
apple stocks shooting to the moon right now - the fraud that is share buy back schemes to control the friday options markets is in full flow! share buy backs should be abolished - outright market manipulation!!!
another day of green. love this. everyday is a green day. who is buying who knows. making money has never been sooooooo easy
See you in 6 months when your account has blown up
Every day is green until it's not.
"Joblessness is now at a 53-year low." Stupid Biden!
just quit your job and jobless numbers go up.
How about that flagrantly predictable, purely FRAUDULENT breaker fire at 10AM.  And magically, the intraday volatility returns, and the losses miraculously vanish into thin air.  Even the most ardent supporter of the laughable "market" has to admit it's a CRIMINALLY MANIPULATED JOKE.  Looks like Wall Street is going for a perfect record, preparing the send the US working class into the 5th weekend out of 5 this year with a financial knife in the back.  Manipulation so flagrant that a 5 year old could recognize it.  Assume the proper position for the weekend America.
is this poo written by a robot, or a grade school student
not falling green again
the cock really can talk a lot of cock.
Efforts to slow the economy are failing. Higher interest rates for much, much, much longer.
Yet oddly the VIX is also falling today!
it's an indicator for volatility. that's all. markets will be less volatile. up or down, just less volatile
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