Wall Street Today | US Stocks Boosted by Payrolls, Inflation Expectations
RECAP
Stocks Cheer Good Economic Data
US stocks rose as the job market remained resilient. Consumer expectations also added to signs that prices are cooling in prices, fueling hopes that the Federal Reserve can achieve its 2% goal without breaking the economy.
The $S&P 500 Index (.SPX.US)$ rose 0.4% to 4,604.37, while the $Dow Jones Industrial Average (.DJI.US)$ gained 0.4% to 36,247.87. The $Nasdaq Composite Index (.IXIC.US)$ closed 0.5% higher at 14,403.97.
Nonfarm payroll in November beat economists' average estimate, while the unemployment rate fell below all forecasts compiled by Bloomberg. Average hourly earnings rose 0.4% from the prior month, the Bureau of Labor Statistics said.
Consumer sentiment rose 13% in December, erasing all declines from the previous four months, mainly driven by improvements in the expected trajectory of inflation, according to the University of Michigan's survey. Inflation expectations fell to the lowest since March 2021, the survey showed.
As long as the soft-landing outcome stays intact, the bias for stocks and risk assets remains positive,” CNBC quoted Michael Arone, chief investment strategist at State Street Global Advisors, as saying.
The data signals the economy "isn’t on the brink of recession,” he said.
MACRO
Payrolls Rise, Sentiment Improves
Payroll employment increased by 199,000 in November, beating the 185,000 expected by economists in a Bloomberg survey. The unemployment rate edged down to 3.7 percent, the U.S. Bureau of Labor Statistics reported today. Average hourly earnings rose 0.4% from the prior month.
Consumer sentiment rose to 69.4 in December, surpassing the 62.4 expected by economists polled by the Wall Street Journal. Year-ahead inflation expectations fell this month to plunged 3.1%, sitting just above the 2.3%-3.0% range seen in the two years before the pandemic, according to the University of Michigan survey.
SECTORS
Crude Oil Rises 2.7%, Yields Move Higher as Gold Dips
$U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ was 13.7 basis points higher, while the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ gained 7.4 basis points after the payrolls and consumer sentiment data were released.
$Crude Oil Futures(FEB5) (CLmain.US)$ advanced 2.7% to $71.20 amid signs of continued strength in the US economy that could help sustain demand. $Gold Futures(FEB5) (GCmain.US)$ 1.3% as higher yields on US Treasuries curbed the investment appeal of the precious metal that doesn't offer any income.
COMPANIES
Biggest Gainer
$Paramount Global-B (PARA.US)$ shares climbed 12%, the biggest gain on the S&P 500, after Deadline reported that Skydance Media Chief Executive David Ellison and RedBird Capital were looking to take control of global media, streaming and entertainment company.
Did Google Fake Gemini AI Demo?
$Alphabet-A (GOOGL.US)$'s stock gave back some of Thursday's gains that were driven by optimism over Google's new Gemini AI model. On Friday, the stock fell after a TechCrunch report that the company faked the Gemini demo video.
The video demo was a series of "carefully tuned text prompts with still images, clearly selected and shortened to misrepresent what the interaction is actually like" with the Gemini AI model, TechCrunch reported.
Lulu Shares Rise to Record
$Lululemon Athletica (LULU.US)$ shares rose to a record as analysts viewed \the company's fourth-quarter revenue guidance as conservative. The company said its board of directors approved an additional stock repurchase program for as much as $1 billion of its common shares, boosting the stock's investment appeal.
Source: Bloomberg, Dow Jones, CNBC, Reuters
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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bright Gopher_8221 : That is, interest rates will not be cut anytime soon. Good news, bad news is not important; it all depends on how Wall Street is hyped up.
102613643 : that is. interestest rates will not be cut anytime soon
affable Blobfish_403 : When inflation data rises or falls, the stock market rises. The reasons for explanation are clearly contradictory. This is puzzling.
affable Blobfish_403 : Hopefully, the “Wall Street Today” analysis will be reasonable and evidence-based.