Market Momentum: Stocks Surge Despite Weak Jobs Report
A Boost to Begin the Month
US stocks kicked off November on a high note, despite a disappointing jobs report that fell short of expectations. The Dow Jones Industrial Average soared nearly 300 points, while the Nasdaq Composite ended the day almost 1% higher.
Jobs Report: A Perfect Storm
The US economy added a mere 12,000 jobs in October, a significant miss from the estimated 106,000. This marked the lowest job growth since December 2020. The weak report was attributed to disruptions caused by hurricanes Helene and Milton, which battered Florida and North Carolina, as well as an ongoing strike by approximately 30,000 Boeing workers. The unemployment rate remained steady at 4.1%.
Federal Reserve’s Dilemma
The weak jobs report reinforced the case for further interest rate cuts from the Federal Reserve. However, the Fed is faced with a challenge due to the noise surrounding the report. As LPL chief economist Jeffrey Roach noted, “Given the storm-related distortion, the Fed is in a tight spot as they adhere to data-dependency.” Despite this, Roach believes the Fed will likely cut rates in the remaining two meetings as economic conditions continue to weaken.
Market Movers: Earnings and More
Investors were also digesting earnings results from tech giants Amazon and Apple. While both companies beat analyst estimates, their stock performances diverged. Amazon shares surged about 6%, while Apple stock fell over 1% due to weakness in its China business.
Other Market Highlights
- The Trump trade has wavered as Kamala Harris’ odds of winning the election rose in betting markets.
- Carvana stock has soared more than 7,000% since it narrowly avoided bankruptcy in 2022.
- In commodities, West Texas Intermediate crude oil rose 0.33% to $69.49 a barrel, while gold dropped 0.20% to $2,743.80 an ounce.
- The 10-year Treasury yield surged nine basis points to 4.382%, and Bitcoin declined 1.53% to $69,132.
Closing Bell
Here’s where US indexes stood at the 4:00 p.m. closing bell on Friday:
- S&P 500: 5,728.88, up 0.41%
- Dow Jones Industrial Average: 42,051.80, up 0.69% (+288.34 points)
- Nasdaq composite: 18,239.92, up 0.80%
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