Strong Jobs Data May Lead To Extended Pullback On Wall Street

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Friday, 04 February 2022 09:22:16 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( [How Pro Traders Actually Pick Their Stocks]( When a stock skyrockets, we're eager to see if it will continue to push higher or reverse course. And there is one way to know what's coming next, but it isn't what you think. It's the only guaranteed way to get answers. [Check out this must-see tool for predictive analysis.]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a lower open on Friday, with stocks likely to extend the pullback seen in the previous session. The downward momentum on Wall Street comes as the closely watched monthly jobs report showed employment increased by much more than expected in January, raising concerns about the outlook for interest rates The Labor Department said employment jumped by 467,000 jobs in January compared to economist estimates for an increase of 150,000 jobs. The report also showed the increase in employment in December was upwardly revised to 510,000 jobs compared to the previously reported 199,000 jobs. Meanwhile, the Labor Department said the unemployment rate inched up to 4.0 percent in January from 3.9 percent in December. Economists had expected the unemployment rate to hold unchanged. U.S. stocks ended sharply lower on Thursday, snapping a four-day winning streak, as disappointing earnings news and weak revenue guidance from Facebook parent Meta triggered widespread selling. The major averages all ended with sharp losses. The Dow ended down by 518.17 points or about 1.45 percent at 35,111.16, not far off from the session's low of 35,071.06. The S&P 500 declined 111.95 points or 2.44 percent to 4,477.43, while the tech-laden Nasdaq settled at 13,878.82, posting a loss of 538.73 points or 3.74 percent. A steep drop by Meta (FB) weighed on the tech sector, with the Facebook parent plunging nearly 27 percent, and hitting its lowest intraday level in well over a year. Meta reeled under pressure after the social media giant reported weaker than expected fourth quarter earnings and provided disappointing revenue guidance for the current quarter. Several other social media stocks, including Snap and Twitter, tumbled as well. Not so encouraging earnings updates from several other companies, including Honeywell (down more than 7 percent) and Spotify (down nearly 17 percent), also weighed on sentiment. Spotify reported a narrower than expected fourth quarter loss but issued a weaker than expected subscriber forecast. Microsoft, Amazon, Salesforce.com, Merck, Intel, Home Depot, Caterpillar, Amgen, Walt Disney, Nike, Apple Inc and Cisco Systems also ended sharply lower. the Labor Department released a report showing a modest decrease by first-time claims for U.S. unemployment benefits in the week ended January 29th. The report showed initial jobless claims dipped to 238,000, a decrease of 23,000 from the previous week's revised level of 261,000. Economists had expected jobless claims to edge down to 245,000 from the 260,000 originally reported for the previous week. Meanwhile, the Institute for Supply Management released a separate report showing a continued slowdown in the pace of growth in U.S. service sector activity in the month of January. The ISM said its services PMI dipped to 59.9 in January after slumping to 62.3 in December, although a reading above 50 still indicates growth. Economists had expected the index to drop to 59.5. With the relatively modest decrease, the services PMI continued to give back ground after reaching a record high of 68.4 in November. A report from the Commerce Department showed factory orders fell by 0.4 percent in December after surging by an upwardly revised 1.8 percent in November. Economists had expected factory orders to dip by 0.2 percent compared to the 1.6 percent jump originally reported for the previous month. Investors also looked ahead to the Labor Department's closely watched monthly jobs report, due on Friday. Economists currently expect employment to rise by 150,000 jobs in January after climbing by 199,000 jobs in December. The unemployment rate is expected to hold at 3.9 percent. --------------------------------------------------------------- [MUST SEE 'Set and Forget' Dividend Portfolio]( The easiest way to self-manage your dividend income portfolio without losing a ton of money is following my advice below. Dividend stocks I personally recommend and buy myself are meant to held for a long time. One of my current dividend payers to 'set and forget' for now is paying over 25% yields. There?s a process I follow to build this dividend portfolio that grows and ends up paying your bills for life. See how easy it is to follow. [Click here to see how this 'set and forget' dividend portfolio works.]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( Employment in the U.S. increased by much more than expected in the month of January, according to a closely watched report released by the Labor Department on Friday. The Labor Department said employment jumped by 467,000 jobs in January compared to economist estimates for an increase of 150,000 jobs. The report also showed the increase in employment in December was upwardly revised to 510,000 jobs compared to the previously reported 199,000 jobs. Meanwhile, the Labor Department said the unemployment rate inched up to 4.0 percent in January from 3.9 percent in December. Economists had expected the unemployment rate to hold unchanged. --------------------------------------------------------------- Europe European stocks were mixed on Friday amid lingering worries over inflation and looming central bank rate hikes. The downside remained capped after data showed Germany's factory orders grew more than expected in December, driven by robust domestic demand. German factory orders grew 2.8 percent on a monthly basis, but slower than the 3.6 percent expansion seen in November, Destatis reported. Economists had forecast an increase of 0.5 percent. On a yearly basis, growth in new orders accelerated to 5.5 percent from 2.3 percent in the previous month. The pan European Stoxx 600 slipped 0.3 percent to 467.22 after plunging 1.8 percent in the previous session. The German DAX shed 0.7 percent, while France's CAC 40 index was marginally higher and the U.K.'s FTSE 100 added half a percent. The euro headed for its best week since March 2020 after the European Central Bank finally acknowledged mounting inflationary risks and left the door open to rate hikes in 2022. Energy stocks rallied on firmer crude oil prices. TotalEnergies SE rose 1.7 percent while both BP Plc and Shell jumped around 3 percent. Saint-Gobain declined 1.6 percent. The French construction materials maker has inked a deal to sell its regional glass processing business Baltiklaas OU in Estonia, to Polar Glass OU, for an undisclosed sum. Vinci rose more than 1 percent. The construction company expects net income this year to exceed its pre-pandemic level in 2019. Beverage firm Carlsberg A/S rose over 1 percent after it launched a new strategy to reach 3-5 percent revenue growth the next 5 years. TomTom NV lost as much as 13 percent after the Dutch consumer electronics firm missed its Q4 estimates. Italy's Intesa Sanpaolo dropped 1 percent. The bank is targeting higher earnings and profitability and plans to return 22 billion euros ($25.16 billion) to shareholders between 2021 and 2025. --------------------------------------------------------------- --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks ended broadly higher on Friday, as strong earnings from the likes of Amazon, Snap Inc. and Pinterest helped investors shrug off a tech-led selloff on Wall Street overnight following disappointing earnings from Facebook parent Meta in the wake of privacy changes by Apple and increased competition from TikTok. Investors also awaited the latest U.S. jobs report for January due out later in the day for clues on the rate outlook. The U.S. central bank is expected to deliver its first interest rate hike in March, aiming to tamp down inflation that has surged to 40-year highs. Shanghai remained closed for Lunar New Year break while Hong Kong's Hang Seng index jumped as much as 771.03 points, or 3.24 percent, 24,573.29. Japanese shares ended higher to notch their first weekly gain in five. The Nikkei average gained 198.68 points, or 0.73 percent, to finish at 27,439.99, marking a weekly gains of 2.7 percent - its best performance since mid-October. The broader Topix index closed 0.55 percent higher at 1,930.56. Financials rose as higher yields booster their outlook for revenue. Games maker Konami Holdings jumped 11.7 percent on posting encouraging earnings. Nintendo and heavyweight Uniqlo store operator Fast Retailing both surged around 3.6 percent. Australian markets advanced, driven by a rebound in technology stocks. Energy stocks also posted broad-based gains after oil prices climbed due to persistent supply concerns. The benchmark S&P/ASX 200 settled up 42.20 points, or 0.60 percent, at 7,120.20, gaining 1.9 percent for the week. The broader All Ordinaries index rose 44.30 points, or 0.60 percent, to 7,418.90. Seoul stocks rose sharply to extend gains for a third straight session as Amazon's surprise earnings created positive sentiment among tech companies. Investors shrugged off data showing that consumer prices in the country stayed well above the Bank of Korea's target in January. The benchmark Kospi rallied 42.44 points, or 1.57 percent, to 2,750.26. New Zealand's benchmark NZX-50 index dropped 55.76 points, or 0.45 percent, to 12,279.56. Briscoe Group bucked the weak trend to climb as much as 5.4 percent to $6.10 after announcing it expected to post a record full-year profit. --------------------------------------------------------------- Do you have a full view of the market? Level 2 lets you see all of the orders to buy and sell shares, allowing you to see what is really going on in the market. If you don?t have this in your trading toolkit, you?re at a serious disadvantage. [Learn More / Upgrade]( --------------------------------------------------------------- Commodities Crude oil futures are jumping $1.85 to $92.09 a barrel after spiking $2.01 to $90.27 a barrel on Thursday. Meanwhile, after falling $6.20 to $1,804.10 an ounce an ounce in the previous session, gold futures are slipping $6.20 to $1,797.60 an ounce. On the currency front, the U.S. dollar is trading at 115.32 yen versus the 114.97 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1430 compared to yesterday?s $1.1440. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +1 888-992-3836. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49