Of the November job report Stocks took a hit today, with data from the Labor Department suggesting the Federal Reserve still has a long way to go in its efforts to slow the economy. In particular, the US added 263,000 jobs which was higher than expected in November, while the unemployment rate remained at 3.7% and the average hourly earnings were 5.1% on the year and this year. Stocks were initially sold off on the news, but the end of the day wasn’t nearly as bad as the start.
“Investors are focused on the continuation of inflation and the fear that the Federal Reserve will stimulate the reduction of the price hike and the reduction of balances. dysfunctionalthe news today is that private sector hourly earnings rose 0.6%, which was easily better than the 0.3% increase, a painful setback during the recession. back at the end of the fourth quarter,” said José Torres, senior economist. Interactive Brokers. “This is the third month in a row of accelerating payments and only two days later to come. Fed Chairman Jerome Powell it shows that the weak labor market is needed to offset multi-year high inflation.
As a result, major market data slipped from 0.9% to 1.6% at the start of the session amid concerns that the central bank may keep interest rates high for a long time. in order to reduce the cost.
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However, the devil is in the details, said Daryl Patten, senior vice president and financial advisor at asset management firm Fort Pitt Capital. While the jobs report looks strong on the surface, Patten says it’s important to take a closer look. Most of the job growth, he noted, came from the service sector, while construction and manufacturing were the two sectors that saw the fastest job gains.
“This supports our view of the shift in consumer spending from goods to services and is in line with ISM manufacturing report yesterday, “says Patten. “As the pandemic hits 2020, consumer spending has shifted away from services (think travel, restaurants, etc.) and toward real products. As interest rates rise, we’re seeing a shift of that spending back to services.”
This thought may be what caused them to leave their lower ranks. Although very low in space, it is technology-heavy Nasdaq Composite ended the day down 0.2% at 11,463 and wide S&P 500 Index it fell 0.1% to 4,071. The blue color Dow Jones Industrial Average it edged higher at the close, ending up 0.1% at 34,429.
Top Upcoming IPOs to Watch
In the next few weeks, investors will begin to bombard the data for 2023. Here at Kiplinger, we have already started our forward-looking lists, recently taking a deep dive on the initial offers for public offerings (IPOs) investors should look out for. out for the new year. The IPO market slowed down significantly in 2022, and although it will not recover in 2023, there are still some high-profile names included in the list of most interesting upcoming IPOincluding Arm, one of the largest semiconductor companies in the world.
