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U.S. stocks were mixed after weaker-than-expected jobs data

Published 04/05/2023, 09:59 AM
Updated 04/05/2023, 12:00 PM
© Reuters.

© Reuters.

By Liz Moyer 

Investing.com -- U.S. stocks were mixed after jobs data gave signs of a weakening economy.

At 11:36 ET (15:36 GMT), the Dow Jones Industrial Average rose 72 points or 0.2%, while the S&P 500 fell 0.4% and the NASDAQ Composite fell 1.2%.

Weaker-than-expected private payroll numbers in March stoked concern that the Federal Reserve’s interest rate increases in the past year could tip the economy into a recession.

ADP’s report said payrolls rose by 145,000 versus expectations of a gain of 200,000 jobs. That combines with weaker-than-expected job openings numbers for February and weaker factory orders.

The worse-than-expected numbers are factoring into the market’s expectations for further Fed moves. Futures traders have shifted their view and are now mostly betting on the Fed to pause its rate hikes at its meeting in May. About 60% hold that view according to the Fed tracker, while 40% see the Fed raising rates by a quarter of a percentage point.

The ADP report is just the preview for the closely watched jobs report from the government, which comes out on Friday. That broader report could provide the Fed with more reason to pause or hike rates in May.

Final data on ISM non-manufacturing activity for March came in lower than expected, at 51.2 versus forecasts for 54.5.

Johnson & Johnson (NYSE:JNJ) shares rose 3.3% after the pharmaceutical maker offered an $8.9 billion settlement for talc-related lawsuits, up from its original proposed $2B offer.

FedEx Corporation (NYSE:FDX) shares rose 1.2% after the logistics company said it would consolidate operating divisions to cut costs and boost efficiency.

Latest comments

The Tax Day Strategy working well so far this year, surprisingly, with all the drama.
That said, it feels like the seasonal gamblers are cashing in their chip stacks early... and who could blame them?  A bird in hand......!
Only one winner is Wall Street
more lies and deception
The USA is a sad, broken embarrassment of a country
Oh. We were so hoping for your approval.
2% inflation is the goal, if so, better bring enough body bags
guys wait for jobless claim number tomorrow. I m sure it must be less and it will boost economy.
Unemployment numbers cannot boost economy. It works in opposite way. The economy defines unemployment numbers.
Kumar failed his economics
Actually, all things being equal, less unemployment number boost the equity market. I believe that was the implication meant.
US in serious trouble - strategic petroleum reserves are critically low, OPEC plus are going to keep the price of oil nice n high and at any time, WW 3 may start leaving the US with severe shortages of energy. Woops!!!
it's best to invest in India, china. much better economy
You seem unaware that the US is a net exporter of oil.
That's assuming our fracking technology fails to dwarf OPEC production. Strategically, however, Sino oil faces lower demand ahead thus OPEC is preparing to squeeze as much short-term profit, by first cutting production excessively and raising its price of oil export.. They see some kind of trouble ahead apparently.
The USA is like a 26 year old ex high school quarterback who still goes to all the games and talks about how he would give anything to have one last shot under those Friday night lights
Look at the battle to keep the laughable DOW in the green.  Can't have a 2-day loss.  Criminally manipulated JOKE.
liberal govt will always over react one way of the other.  we are likely heading to a situation where they will need to cut rates at some point this year!
This is policy of the Zip-Zap! Example: One thoth on mind, something comply different said, and action in Z course... Circus is the best example!
this quarter - the global economy is crashing  - the rate of change is large, which is what you'd expect when the rate of FED tightening was also fast and extreme - expect more bank collapses and further lending tightening. and therefore credit crunch coming to a town near you very soon!!!
 Actually, The Fed just proved it was able to subdue the crisis temporarily by flushing more liquidity into the market by using Reverse REPO. Bank loans by collateral via the Fed Trade Desk' relaxed protocol allows any Bank to "borrow" from the Fed. In essence, the Fed didn't have to go extreme by cutting interest rate. They also activated their emergency Bank Term Funding Program (BTFP) increasing loan potentials and liquidity into the market.
The most important number is unemployment claims. If this number is under 300K then it indicates a very healthy job market.
it must be below 300k
first of all, if you believe those cooked books, you're having a laugh - safe and effective???? seccondly it's inevitable in the next six months we're going to see a huge uptick in unemployment - the layoff from the big corporations is staggering and credit crunch will mean many medium and smaller firms will also have to lay off hundreds of thousands of workers also!!!
Oh, no. That sound horrible. I am sure that will make you sad.
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