Higher stocks on jobs bring shock, debt ceiling deal; Oil at $ 80

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US stocks swung into positive territory on Friday, as Treasury yields held near their highest levels since early June, as investors broke through concerns about the debt ceiling while analyzing the details disappointing employment report in September.

The Bureau for Labor Statistics said 194,000 new jobs were created last month, with the overall unemployment rate falling to a post-pandemic low of 4.8%. September’s tally was firmly south of Street’s consensus forecast of 500,000 and the lowest monthly total for the year.

Wages rose 0.6% on the month, however, and private sector job gains were strong, at 317,000, triggering a mixed reaction for equities as the final week-long session approached. volatile.

“Friday’s mixed job numbers suggest little change in the economic growth narrative,” Richard Saperstein, chief investment officer at Treasury Partners. “While the overall figure was much lower than expected, the economy saw decent private sector job growth in September as well as a drop in the unemployment rate.”

“Despite the relatively weak jobs report, the Federal Reserve remains on track to start reducing its stimulus measures in November or December,” he added. “A lower than expected number of jobs is not likely to change the thinking of the Fed.”

Fed Chairman Jerome Powell told reporters last month that it wouldn’t take a knockout or a super strong jobs report “to start slowing the pace of buying, which analysts say, could last around 8 months before the entire program runs out, from which point the first rate hike is expected to occur in September 2022.

The Dow Jones Industrial Average rose 66 points in the first half hour of trading, while the broad S&P 500 climbed 8 points into the green.

The tech-focused Nasdaq Composite meanwhile rose 8 as benchmark 10-year yields held steady at 1.601% at the start of the New York session following the release of jobs data. .

A Senate deal that allowed a temporary $ 480 billion addition to the debt ceiling, raising it to $ 28.9 trillion, will move to the House for a floor vote next week and push back the entire debate at the beginning of December.

The deal – which was passed by the upper house by a 50-48 vote – sparked the biggest one-day rally in global stocks since May and put Wall Street firmly in the green as markets close.

Energy markets, however, continue to test market bulls as oil again approaches seven-year highs on Friday amid the continuing energy crisis – and surging fuel prices. natural gas – in Europe and China.

WTI futures for November delivery rose $ 1.371 in the session to $ 80.01 a barrel, the highest since November 2014, while Brent contracts for December, the global benchmark, were seen for the last time $ 1.21 higher at $ 83.15 a barrel.

You’re here (TSLA) – Get the Tesla Inc report Shares have been an active pre-market driver, falling 1.12% to $ 784.75 each after founder and CEO Elon Musk on Thursday night unveiled plans to move the clean-energy automaker’s headquarters from the California, Texas, the site of its developing gigafactory and the home of SpaceX.

Musk also said he hoped the global semiconductor shortage “would ease soon,” adding that he was confident of increasing the automaker’s record total of third quarter deliveries.

Home deposit (HD) – Get the Home Depot, Inc. (HD) report stocks were also weaker with its smaller rival Lowe’s (MEUGLER) – Get the Lowe’s Companies, Inc. (LOW) report Following suit, after Loop Capital analysts downgraded their ratings on the two companies, citing “significant” supply chain risks for home improvement retailers.

Apple (AAPL) – Get the Apple Inc. (AAPL) report shares were also higher, rising 0.13% to $ 143.50 after iPhone maker main rival Samsung Electronics forecast its highest quarterly profit in three years thanks in part to a surge in prices. global semiconductor prices and strong demand for its new foldable smartphone.

In overseas markets, the European Stoxx 600 edged down 0.2% in a muted session as investors watched the non-farm payroll report at 1:30 p.m. Frankfurt time, while Chinese stocks gained in their first trading session after the Golden Week break to help the region. -The MSCI ex-Japan index gained 0.2% as the final hours of trading approached.


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