Stocks Down for First Time in Five Days After Jobs Report
Stocks fall Friday following four days of gains after the United States economy adds more jobs than expected in January.
- Stocks fell Friday following four days of gains after the United States economy added more jobs than expected in January.
- The U.S. added 225,000 jobs in January and the unemployment rate edge higher to 3.6% during the month.
- Uber is Real Money’s Stock of the Day. The ride-hailing company said it expects to be profitable by the fourth quarter of 2020.
Stocks fell Friday following four days of gains after the United States economy added more jobs than expected in January.
The Dow Jones Industrial Average fell 174 points, or 0.59%, to 29,205, the the S&P 500 declined 0.57% and and the Nasdaq was down 0.66%.
Nonfarm payrolls rose to 225,000 last month, up from a revised 147,000 new positions in December and above analysts’ forecasts of 161,500. The unemployment rate ticked up from a 50-year low to 3.6%. Wages gained 3.1% year on year, a slight rise above December’s 3% pace.
“January’s better-than-expected jobs report is well-timed in that it boosts economic confidence just when coronavirus fears had investors questioning the growth outlook,” said Alec Young, managing director of global markets research at FTSE Russell. “That said, stocks are overbought after a huge rally, some of which has been predicated on hopes for a June Fed rate cut which now seems highly unlikely. As such, equities may not react positively in the near term despite the strong read on the labor market.”
Markets in Asia and Europe traded mostly lower Friday as concerns continued to grow over the pace of new coronavirus infections and China’s ability to contain it.
Chinese President Xi Jinping held a telephone call with President Donald Trump to assure him of China’s efforts, but the death of a young doctor in Wuhan, who first identified the spread of the virus only to then be threatened by local police, has some observers concerned with the level of transparency about the information coming from Beijing.
The death toll from the coronavirus has risen to 640 and the number of people infected has passed 31,000.
Uber UBER was rising sharply Friday after the ride-hailing company said it will turn a profit by the fourth quarter of 2020, earlier than its previous forecasts.
Uber CEO Dara Khosrowshahi said Uber will turn its losses into a profit by the end of 2020, ahead of its prior target of 2021.
“Our progress in 2019 and our 2020 plans give me the confidence to challenge our teams to accelerate our EBITDA profitability target from full-year 2021 to Q4 2020,” Khosrowshahi said.
AbbVie ABBV posted stronger-than-expected fourth-quarter earnings and forecast solid 2020 profit as rising cancer drug sales helped offset flat revenue from its Humira rheumatoid arthritis treatment.
Canada Goose GOOS, the down-filled luxury winter parka maker, reported fiscal third-quarter results that beat expectations on strong international sales but cautioned that the ongoing coronavirus health crisis will have an impact on future sales and earnings.
Tidjane Thiam, CEO of Swiss banking giant Credit Suisse CS, abruptly resigned Friday following a spying scandal and a boardroom struggle with Chairman Urs Rohner.
Activision Blizzard ATVI , the maker of video games, reported fourth-quarter earnings and revenue ahead of analysts’ estimates and healthy first-quarter guidance.
The company’s “Call of Duty” first-person shooting game once again was the crown jewel of the holiday season, generating more upfront console sales than any other franchise worldwide. That is the 10th time in the last 11 years “Call of Duty” achieved that status.
Provided by: The Street Retirement
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