STOCKS END HIGHER AFTER LOUSY JOBS REPORT: Here's What You Need To Know
Jan 11, 2014, 02:30 IST
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First, the scoreboard:
- Dow: 16,424.24 (-20.0, -0.1%)
- S&P 500: 1,841.0 (+2.9, +0.1%)
- Nasdaq: 4,170.9 (+14.7, +0.3%)
And now the top stories:
- U.S. nonfarm payrolls increased by just 74,000 in December, missing economists' expectation for a gain of 197,000. More Americans drop out of the workforce, causing the labor force participation rate (LFPR) to decline to 62.8% from 63.0%. The unemployment rate fell to 6.7% from 7.0% in November, but this was largely due to the shrinking LFPR.
- One of the major forces behind the disppointing report was the unusually cold weather. According to the Bureau of Labor Statistics, around 273,000 people weren't able to work due to weather. Weather hadn't had this big of an impact on jobs since December 1977. Most economists agree that this is just a temporary phenomenon, not reflective of a more serious underlying economic problem.
- President Obama will nominate Stanley Fischer, Lael Brainerd, and Jerome Powell to the Federal Reserve. Fischer will fill the vice chair position vacated by Janet Yellen. There are no big surprises here. For the most part, experts are thrilled to hear about Fischer's nomination. Morgan Stanley's Vincent Reinhart previously said that a Yellen-Fischer Fed would make for a monetary policy "dream team."
- Sears Holdings got crushed today. On Thursday afternoon, the retailer warned that it would report a Q4 net loss of $2.01-$2.98 per share. Analysts had been expected a $0.26 per share profit. Management also warned that its quarter-to-date comparable store sales tumbled 7.4%.
- Don't Miss: GOLDMAN: Here Are 40 Great Comeback Stocks For 2014 »
