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Stocks end strong week on lower note despite decent jobs report
07-Feb-20 16:15 ET
Dow -277.26 at 29102.42, Nasdaq -51.64 at 9520.53, S&P -18.07 at 3327.71

https://www.briefing.com/stock-market-update

[BRIEFING.COM] The S&P 500 pulled back 0.5% on Friday, unable to generate follow-through buying interest after the better-than-expected employment report for January. The Nasdaq Composite (-0.5%) fell in-line with the benchmark index, while the Dow Jones Industrial Average (-0.9%) and Russell 2000 (-1.2%) underperformed.

Nonfarm payrolls grew by 225,000 in January, beating the Briefing.com consensus of 164,000 and corroborating prior reports from this week that U.S. hiring activity remained strong. Average hourly earnings increased 0.3%, as expected, while the unemployment rate increased to 3.6% (Briefing.com consensus 3.5%) from 3.5%.

The employment report capped a series of good reports this week, but it wasn't enough to warrant more gains on Friday. The S&P 500, after all, entered the session up 3.7% for the week in part due to data showing strength in the labor market.

The S&P 500 information technology sector (-1.5%) was an influential weight on the market amid broad-based weakness. Apple (AAPL 320.03, -4.41, -1.4%) was pressured by news that it extended the closure of its China stores through Feb. 15. The defensive-oriented consumer staples sector (+0.2%) outperformed.

Notable gainers included Uber (UBER 40.63, +3.54, +9.5%), AbbVie (ABBV 92.29, +5.11, +5.9%), and T-Mobile US (TMUS 85.44, +2.67, +3.2%) following their earnings reports. Take-Two Interactive (TTWO 112.60, -15.14, -11.9%), on the other hand, was the biggest laggard in the S&P 500 following its report.

In other corporate news, FedEx (FDX 155.66, +7.03, +4.7%) said it is optimizing last-mile residential deliveries that will drive costs lower. Intercontinental Exchange (ICE 92.63, +2.52, +2.8%) said it will no longer explore strategic opportunities with eBay (EBAY 36.20, -1.80, -4.7%).

U.S. Treasuries finished on a higher note amid the negative bias in the stock market. The 2-yr yield declined six basis points to 1.39%, and the 10-yr yield declined seven basis points to 1.58%. The U.S. Dollar Index increased 0.2% to 98.69. WTI crude fell 1.2%, or $0.62, to $50.35/bbl.

Reviewing Friday's economic data:

Nonfarm payrolls, bolstered by a nice 44,000 increase in construction jobs, were better than expected in January; average hourly earnings were up; and the labor force participation rate improved with annual adjustments to population controls giving it some ballast. January nonfarm payrolls increased by 225,000 (Briefing.com consensus 164,000).
The key takeaway from the report is that employment conditions remain in that sweet spot of being encouraging on the hiring front and encouraging on the inflation front in that average hourly earnings growth isn't accelerating sharply enough to provoke imminent rate-hike concerns.
Wholesale inventories declined 0.2% in December (Briefing.com consensus -0.1%) following a revised 0.1% increase (from -0.1%) in November
Consumer credit increased by $22.0 bln in November (Briefing.com consensus $17.5 bln) after increasing a downwardly revised $11.9 bln (from $12.5 billion) in November.
The key takeaway from the report is that the increase in December was led by a jump in revolving credit.

Investors will not receive any notable economic data on Monday.

Nasdaq Composite +6.1% YTD
S&P 500 +3.0% YTD
Dow Jones Industrial Average +2.0% YTD
Russell 2000 -0.7% YTD

Market Snapshot
Dow 29102.42 -277.26 (-0.94%)
Nasdaq 9520.53 -51.64 (-0.54%)
SP 500 3327.71 -18.07 (-0.54%)
10-yr Note +27/32 1.586
NYSE Adv 1009 Dec 1829 Vol 859.9 mln
Nasdaq Adv 973 Dec 2211 Vol 2.2 bln

Industry Watch
Strong: Consumer Staples, Real Estate, Communication Services
Weak: Information Technology, Materials

Moving the Market

-- Stock market closed lower but still finished the week sharply higher

-- Economy added 225,000 jobs to nonfarm payrolls in January (Briefing.com consensus 164,000)

-- Relative weakness in the information technology sector, while defensive-oriented sectors outperformed

WTI crude extends losses
07-Feb-20 15:30 ET
Dow -273.18 at 29106.50, Nasdaq -17.53 at 9554.64, S&P -17.31 at 3328.47

[BRIEFING.COM] The S&P 500 is on pace to end a great week on lower note. Currently, the benchmark index is down 0.5%.

One last look inside the S&P 500 shows materials (-1.5%) and information technology (-1.0%) down at least 1.0%, while consumer staples (+0.2%), communication services (+0.1%), and real estate (+0.1%) trade higher.

WTI crude fell $0.62 (-1.2%) to $50.35/bbl.