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Stock market news live updates: Stocks rally after December jobs report

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U.S. stocks climbed on Friday after December employment data showed wage growth decelerated last month while a closely watched manufacturing report reflected a contraction in the services industry. Investors perceived the releases as a sign Federal Reserve officials may ease their rate hiking campaign.

The S&P 500 (^GSPC) jumped 1.7%, while the Dow Jones Industrial Average (^DJI) added 550 points, or around the same percentage amount. The technology-heavy Nasdaq Composite (^IXIC) advanced 1.5%. All three major averages were on pace to round out the first week of 2023 with losses before Friday, but the indexes will end in positive territory if momentum holds.

The Labor Department’s final jobs report of 2022 showed the U.S. economy added 223,000 payrolls last month while the unemployment rate fell to 3.5%. Economists had expected readings of 200,000 and 3.7%, respectively.

Employment has moderated in recent months, but hiring remains momentous despite the Federal Reserve’s efforts to quell a tight labor market that has placed upward pressure on wages and contributed to stubborn inflation.

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“With over 1.8 unfilled jobs for every unemployed person, investors should expect higher rates for longer after today’s release,” Lazard Chief Market Strategist Ron Temple said in a note. “As long as the labor market remains this tight, the Fed cannot rest assured that inflation will return to its 2% target.”

The ISM’s non-manufacturing PMI fell below the 50 threshold for the first time since early into the pandemic two years ago. The gauge of services activity in the U.S. fell to 49.6 last month from 56.5 in November. Economists surveyed by Bloomberg expected a print of 55.0.

Beleaguered Tesla (TSLA) pared a loss of as much as 7% earlier in the session after the electric carmaker slashed prices in China following a December drop in deliveries.

The starting price for Model 3 was cut to 229,000 yuan, or around $33,000, while prices on the Model Y have been lowered to 259,900 yuan, or $37,886, according to Tesla’s website.

Elsewhere in markets, World Wrestling Entertainment (WWE) shares surged 23% after The Wall Street Journal reported former chief executive Vince McMahon will return to explore a sale of the business. McMahon retired in July 2022 following a misconduct probe.

Bed Bath & Beyond (BBBY) slid another 18% Thursday morning after revealing in a statement the previous day that the company was exploring bankruptcy as it runs out of cash. On Wednesday, shares tanked 30% following the announcement.

Costco (COST) stock gained more than 7%, emerging from a six-month low after the bulk retailer released upbeat December sales data. Revenue last month came in at $23.8 billion, up 7% year-over-year, while total comparable store sales grew 5.5%, beating analyst expectations of 5%. Costco was Yahoo Finance’s company of the year.

In commodities markets, oil prices rebounded Friday morning after a gloomy start to the year that saw crude futures plunge as much as 10% this week. West Texas Intermediate (WTI) crude oil, the U.S. benchmark, rose 1.8% to trade around $75 per barrel midday.

A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 5, 2023. REUTERS/Andrew KellyA trader works on the trading floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 5, 2023. REUTERS/Andrew Kelly
A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 5, 2023. REUTERS/Andrew Kelly

Outside of the main monthly jobs report, a bevy of other labor market updates this week suggested hiring remains strong and job openings are still high. For investors, the figures suggested labor conditions remain tight enough for the Federal Reserve to keep raising interest rates, sending stocks lower.

In the previous trading session, all three major averages shed more than 1% after the ADP National Employment report showed private payrolls grew by 235,000 jobs in December, while filings for unemployment insurance fell to the lowest since September.

“Last year, it was the Fed versus the markets — they needed valuations to come down, they wanted equities to go down, they wanted bonds to go down, they wanted housing prices to go down — they got that,” David Waddell, CEO of eponymous firm Waddell and Associates told Yahoo Finance Live on Wednesday. “This year, it’s going to be the Fed versus employers, and what the Fed has told employers is, ‘We’re not going to stop until you fire two million people.'”

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Ottawa expands price caps to Russian petroleum products to reduce revenues

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OTTAWA — The federal Finance Department says Canada is joining its fellow G-7 countries plus Australia to expand caps on Russian oil to include seaborne petroleum products from that country.

The department says the maximum price for seaborne Russian-origin petroleum will be US $100 per barrel for “premium-to-crude” products as of Sunday, and US $45 for “discount-to-crude” products.

It says in a press release the new caps build on a Russian crude oil price limit announced in December, adding both moves will weaken President Vladimir Putin’s ability to fund the war against Ukraine.

The Department of Finance says the caps will be enforced by prohibiting buyers who do not abide by the price caps from obtaining services from companies in the G7 or Australia.

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It says the price cap mechanism has been designed to reduce Russian revenues while recognizing the importance of stable energy markets and minimizing negative economic effects.

Finance Minister Chrystia Freeland says Russian oil revenues have already declined since the first price cap took effect and the additional price caps “will be another blow to Putin’s war chest.”

This report by The Canadian Press was first published Feb. 4, 2023.

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This story was produced with the financial assistance of the Meta and Canadian Press News Fellowship.

 

The Canadian Press

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Adani crisis ignites India contagion fears, credit warnings – Al Jazeera English

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  1. Adani crisis ignites India contagion fears, credit warnings  Al Jazeera English
  2. Indian tycoon Adani hit by more losses, calls for probe  CP24
  3. Adani Flagship Shelves $122 Million Bond Plan After Market Rout  BNN Bloomberg
  4. How Adani selloff stacks up against the biggest stock collapses  Deccan Herald
  5. Adani response to Hindenburg report: Embattled corporations invoking nationalism, or national sentiment, is not unheard of  The Indian Express
  6. View Full Coverage on Google News

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Jobs report is a 'fairytale scenario' for markets, economist says – Yahoo Finance

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Jobs report is a ‘fairytale scenario’ for markets, economist says  Yahoo FinanceView Full Coverage on Google News

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