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Wall Street sharply lower on Friday after a choppy season. Throughout the day, market participants remained concerned regarding more interest rate hike by the Fed and mixed jobs data for October. Stocks posted a strong rally in the final hour of trading following news that China may reopen its economy from COVID-19 restrictions . All the three major stock indexes ended in positive territory. However, for the week, these indexes finished in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) surged 1.3% or 401.97 points to close at 32,403.22. Notably, 27 components of the 30-stock index ended in positive territory while 3 in red. The tech-heavy Nasdaq Composite finished at 10,475.25, rising 1.3% or 132.31 points due to strong performance of large-cap technology stocks.
The S&P 500 gained 1.4% to end at 3,770.55. All 11 broad sectors of the benchmark index closed in positive territory. The Financials Select Sector SPDR (XLF), the Materials Select Sector SPDR (XLB), the Industrials Select Sector SPDR (XLI) and the Technology Select Sector SPDR (XLK) advanced 1.8%, 3.5%, 1.6% and 1.8%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 3% to 24.55. A total of 13.31 billion shares were traded on Friday, higher than the last 20-session average of 11.74 billion. Advancers outnumbered advancers on the NYSE by a 2.56-to-1 ratio. On Nasdaq, a 1.41-to-1 ratio favored advancing issues.
Mixed Jobs Data
The Department of Labor reported that the nonfarm payrolls for October came in at 261,000, well above the consensus estimate of 199,000. However, October’s data marked the slowest pace of job gains since December 2020. September’s data was revised upward to 315,000 from 263,000 reported earlier. On the other hand, the data for August was revised lowered to 292,000 from 315,000.
The unemployment rate increased to 3.7% in October from 3.5% in September. The consensus estimate was 3.6%. Average workweek remained flat month-over-month at 34.5. The hourly wage rate increased to 0.4% in October from 0.3% in September. The consensus estimate was 0.3%. Year over year, the hourly wage rate increased by 4.7% in October.
In October, the healthcare sector added 53,000 jobs. The professional & technical services sectors and manufacturing added 43,000 and 32, on Chinese 000 jobs. The leisure and hospitality sector gains 35,000 jobs while the retail sector gained just 7,200 jobs. Wholesale trade and transportation & warehousing sectors added 15,000 and 8,000 manpower.
Rumor on Chinese Reopening
Wall Street was ripe with the rumor that China may relax its zero-tolerance on COVID-19 policies and is likely to reopen its economy in phased manner. Globally China is the largest supplier of the low-cost industrial inputs and the largest buyer of high-end products. Therefore, reopening of the Chinese economy will ease global inflationary pressures, especially the record-high inflation rate in the United States.
The last week was a disappointing on Wall Street. The Dow fell 1.4%, terminating a four-week winning streak. The S&P 500 and the Nasdaq Composite tanked 3.3% and 5.6%, respectively. Both indexes ended a two-week winning run. The Fed’s recent rate hike and the Fed Chairman’s hawkish statement were the primary reasons for this week performance.
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Stock Market News for Nov 7, 2022
Wall Street sharply lower on Friday after a choppy season. Throughout the day, market participants remained concerned regarding more interest rate hike by the Fed and mixed jobs data for October. Stocks posted a strong rally in the final hour of trading following news that China may reopen its economy from COVID-19 restrictions . All the three major stock indexes ended in positive territory. However, for the week, these indexes finished in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) surged 1.3% or 401.97 points to close at 32,403.22. Notably, 27 components of the 30-stock index ended in positive territory while 3 in red. The tech-heavy Nasdaq Composite finished at 10,475.25, rising 1.3% or 132.31 points due to strong performance of large-cap technology stocks.
The S&P 500 gained 1.4% to end at 3,770.55. All 11 broad sectors of the benchmark index closed in positive territory. The Financials Select Sector SPDR (XLF), the Materials Select Sector SPDR (XLB), the Industrials Select Sector SPDR (XLI) and the Technology Select Sector SPDR (XLK) advanced 1.8%, 3.5%, 1.6% and 1.8%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 3% to 24.55. A total of 13.31 billion shares were traded on Friday, higher than the last 20-session average of 11.74 billion. Advancers outnumbered advancers on the NYSE by a 2.56-to-1 ratio. On Nasdaq, a 1.41-to-1 ratio favored advancing issues.
Mixed Jobs Data
The Department of Labor reported that the nonfarm payrolls for October came in at 261,000, well above the consensus estimate of 199,000. However, October’s data marked the slowest pace of job gains since December 2020. September’s data was revised upward to 315,000 from 263,000 reported earlier. On the other hand, the data for August was revised lowered to 292,000 from 315,000.
The unemployment rate increased to 3.7% in October from 3.5% in September. The consensus estimate was 3.6%. Average workweek remained flat month-over-month at 34.5. The hourly wage rate increased to 0.4% in October from 0.3% in September. The consensus estimate was 0.3%. Year over year, the hourly wage rate increased by 4.7% in October.
In October, the healthcare sector added 53,000 jobs. The professional & technical services sectors and manufacturing added 43,000 and 32, on Chinese 000 jobs. The leisure and hospitality sector gains 35,000 jobs while the retail sector gained just 7,200 jobs. Wholesale trade and transportation & warehousing sectors added 15,000 and 8,000 manpower.
Rumor on Chinese Reopening
Wall Street was ripe with the rumor that China may relax its zero-tolerance on COVID-19 policies and is likely to reopen its economy in phased manner. Globally China is the largest supplier of the low-cost industrial inputs and the largest buyer of high-end products. Therefore, reopening of the Chinese economy will ease global inflationary pressures, especially the record-high inflation rate in the United States.
Following the rumor, the shares of the Chinese e-commerce that are traded in the U.S. markets like Pinduoduo Inc. (PDD - Free Report) , Alibaba Group Holding Ltd. (BABA - Free Report) and JD.com Inc. (JD - Free Report) have jumped 8.6%, 7.1% and 9.7%, respectively. Pinduoduo and JD.com carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Weekly Roundup
The last week was a disappointing on Wall Street. The Dow fell 1.4%, terminating a four-week winning streak. The S&P 500 and the Nasdaq Composite tanked 3.3% and 5.6%, respectively. Both indexes ended a two-week winning run. The Fed’s recent rate hike and the Fed Chairman’s hawkish statement were the primary reasons for this week performance.