2 hours ago
US labor market figures continue to boost stocks and bonds
European and U.S. stocks and bonds rallied on Friday after weaker-than-expected U.S. jobs data, further fueling expectations that the Federal Reserve may be done raising interest rates.
U.S. Treasury yields fell sharply, as did short- and long-term British and German government bond yields, continuing similar moves on Thursday. Yields move in the opposite direction to prices.
“The weak, but not too weak, U.S. jobs data for October has boosted investor confidence that U.S. interest rates have peaked and the U.S. economy will manage a soft landing,” said Nick Brooks, head of economic and economics Investment research at ICG. said in emailed comments.
“Markets reacted violently, risk assets rose sharply and developed market government bond yields fell.”
3 hours ago
US stocks open higher on Friday
Major averages opened higher on Friday.
The Dow Jones Industrial Average rose 175 points, or 0.5%. The S&P 500 rose 0.5%, while the Nasdaq Composite gained 0.4%.
—Sarah Min
4 hours ago
US jobs grew slower than expected in October
The Labor Department said Friday that the U.S. economy added 150,000 jobs in October. This is slightly below the Dow Jones forecast of 170,000.
Average hourly wages, a closely watched data point in the inflation trends report, rose 0.2% last month. This is also a smaller increase than expected. Unemployment, meanwhile, rose to 3.9% versus a forecast of 3.8%.
—Fred Imbert
4 hours ago
The concept of a soft US landing is dead, says strategist
Salman Ahmed, global head of macroeconomic and strategic asset allocation at Fidelity International, explains why the U.S. economy is not headed for a “landing” of any kind.
9 hours ago
Europe stocks set to open higher
IG data shows European markets opening higher, with the FTSE 100 up 26 points at 7,473, France’s CAC 40 up 22 points at 7,085 and Germany’s DAX up 53 points at 15,197.
– Jenni Reid
14 hours ago
China services activity rebounded slightly in October: Caixin survey
China’s services sector grew slightly faster in October, according to the Caixin services survey.
The purchasing managers’ index was 50.4, just above the September value of 50.2. Caixin wrote that this indicates a continued increase in business activity in the services sector, but the reading means only a marginal growth rate overall.
According to Caixin, China’s service sector has been in expansion territory for ten consecutive months.
—Lim Hui Jie
16 hours ago
CNBC Pro: Goldman Sachs updates its Directors’ Cut list of top European stocks with big upside potential
A possible recession, high inflation rates and uncertainty in energy markets are just a few reasons why investors are currently avoiding Europe – but Goldman Sachs remains positive on a number of stocks in the region.
In an Oct. 31 note, the investment bank updated its “Conviction List – Directors’ Cut” stocks to buy in Europe, describing it as “a curated list of our most differentiated fundamental buying ideas across our European coverage.”
The updated list contains an important inventory addition.
CNBC Pro subscribers can read more here.
—Amala Balakrishner
16 hours ago
CNBC Pro: Bonds or Stocks? Wall Street shares its preferences – and how to invest
Should an investor choose bonds or stocks in the short to medium term?
Both markets have been volatile recently, which could make the choice difficult for traders.
Stock prices rebounded following the Federal Reserve’s decision to keep interest rates stable, but Fed Chairman Jerome Powell stressed that the central bank had not yet begun to consider cutting interest rates and would not do so until the Inflation is under control.
CNBC Pro takes a look at what Wall Street pros are saying.
Subscribers can read more here.
– Weizhen Tan
18 hours ago
How extensive and broad was the stock market rally on Thursday? Very.
Ninety percent of the total volume of shares changing hands on the New York Stock Exchange on Thursday rose in price. Less than 10% declined. On the Nasdaq stock market, about 82% of volume was higher, while less than 18% saw lower prices.
Advancing stocks outnumbered declining stocks by nearly 9-1 on the New York Stock Exchange versus about 7-2 on the Nasdaq. The total volume of shares traded on both markets was about 15% higher than the daily average over the past month.
Seven of the 11 major stock sectors rose more than the S&P 500, rising 1.89%, led by energy and real estate (both up 3.1%) and financials (up 2.4%). The laggards were communications services (up 0.9%), consumer staples (up 1.3%) and healthcare (up 1.6%).
In addition to the boost for stocks that came from falling Treasury yields, prices were also boosted by a weaker dollar. The DXY Dollar Index fell 0.66% on Thursday.
– Scott Schnipper