Marketbites: Payroll Numbers Released
MARKET PERFORMANCE:
Portfolio Manager Commentary:
U.S. stocks advanced Friday after the December jobs report and an economic activity survey showed signs that inflation may be cooling, signaling that the Federal Reserve’s interest rate hikes are having their intended effect.
It was the best day for the Dow and S&P 500 since Nov. 30 and the best for the Nasdaq since Dec. 29. Every Dow component ended Friday in the green. Friday’s rally helped stocks end in positive territory for the week, which was the first of the year. The Dow and S&P 500 each closed the week up 1.5%. The Nasdaq advanced 1%. Stocks rose again when the ISM’s nonmanufacturing purchasing managers’ index showed that the services industry contracted in December, a sign that the Fed’s rake hikes may be working to slow the economy.
Chart of the Day:
U.S. employers added 223,000 jobs in December, a sign of continued strength in the labor market. The jobless rate moved down to 3.5% from a revised 3.6% in November. The December payroll numbers are a slight decline from November’s revised increase of 256,000, the Labor Department said Friday. Still, there are signs of cooling in certain industries: Tech companies cut more jobs in 2022 than they did at the height of the Covid-19 pandemic. Both Amazon and Salesforce announced massive layoffs earlier this week. Companies in the interest-rate-sensitive housing and finance sectors, including Redfin Corp., Morgan Stanley, and Goldman Sachs Group Inc., have also moved to reduce staff.
Source: WSJ
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