STOCKS END HIGHER AFTER LOUSY JOBS REPORT: Here's What You Need To Know
Advertisement
REUTERS/Olivia Harris
Advertisement
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 »
BI Intelligence, a new subscription research service from Business Insider, provides in-depth insight, data, and analysis of the mobile industry. Access all reports, research updates, presentations, data and chart libraries plus much more with your free trial. | ||
Click here to start your subscription>> | ||
Advertisement
- I quit McKinsey after 1.5 years. I was making over $200k but my mental health was shattered.
- Some Tesla factory workers realized they were laid off when security scanned their badges and sent them back on shuttles, sources say
- I tutor the children of some of Dubai's richest people. One of them paid me $3,000 to do his homework.
- Why are so many elite coaches moving to Western countries?
- Global GDP to face a 19% decline by 2050 due to climate change, study projects
- 5 things to keep in mind before taking a personal loan
- Markets face heavy fluctuations; settle lower taking downtrend to 4th day
- Move over Bollywood, audio shows are starting to enter the coveted ‘100 Crores Club’