US stocks close mixed after jobs report miss

Stock market news live updates: Stocks resurge, ending a three-session losing streak after strong jobs report

US stocks close mixed after jobs report miss

Stocks closed higher at the end of a choppy trading day after the Labor Department's February jobs report handily exceeded expectations, reaffirming the building momentum in the economic recovery, but also stoking a rise in Treasury yields and concerns over an economic overheating.

The S&P 500 and Dow each rallied in the final hour of trading, shaking off earlier declines and ending three-session losing streak.

The Nasdaq also pared earlier losses to push higher, as technology stocks badly beaten down over the last several sessions recovered some declines.

Still, the index posted its third straight weekly loss after enduring three consecutive sessions of steep drops earlier this week.

The 10-year Treasury yield rose to about 1.6%, hovering around a one-year high after the Labor Department's February jobs report showed the economy made additional strides to bring back payrolls early this year, with jobs rising by a better-than-expected 379,000 during the month.

“An above average payroll report (+379k), upward revisions, and a falling unemployment rate (to 6.2%) point to continued recovery. Markets will remain concerned that the potentially massive impact of a $1.

9 trillion fiscal relief package could turbo charge the recovery later in the year, and spill into higher inflation,” David Donabedian, chief investment officer of CIBC Private Wealth, wrote in an email Friday morning.

“A 355,000 gain in the leisure and hospitality sector suggests that the economy is re-opening from COVID lockdowns, with more expected in the months ahead.”

Federal Reserve Chairman Jerome Powell suggested Thursday that the central bank would remain “patient” with holding benchmark rates near zero, even in the face of rising inflationary pressures.

Some investors have worried that the massive stimulus passed by Congress – with another $1.

9 trillion stimulus package currently up for debate in the Senate – alongside ultra-accommodative monetary policy may be stoking an even faster-than-expected economic recovery, which could lead to a runaway surge in prices.

Technology stocks have especially borne the brunt of this week's leg lower in equity markets, as investors unwound their positions in high-growth stocks in favor of shares of companies with earnings more closely tied to a strong economic recovery. The Nasdaq dipped into correction territory intraday on Thursday, falling more than 10% from a recent record closing high.

“I think what has spooked investors is two things: One is the speed with which we got from essentially just below 1% to 1.5% [in the 10-year Treasury yield] in the first two months of the year.

Forecasts were certainly for getting to this level, and up to as high as 2%, by the end of the year, but it happened rather quickly,” Tony Rodriguez, Nuveen head of fixed income strategy, told Yahoo Finance.

“And then I think also, it’s the positive information that we’ve gotten in terms of fiscal policy, in terms of actual economic data and in terms of the successful, or really sped-up roll the vaccine leading to much much more positive projections for growth,” he added. “And that’s spooked investors, in terms of whether the Fed is going to have to respond by potentially tightening soon.”

4:02 p.m. ET: Stocks end higher, rallying into the close and shaking off earlier losses

Here's where the major indexes ended Friday’s session:

  • S&P 500 (GSPC): +73.31 points (+1.95%) to 3,841.78
  • Dow (DJI): +573.80 points (+1.86%) to 31,497.88
  • Nasdaq (IXIC): +196.68 points (+1.55%) to 12,920.15

2:59 p.m. ET: Robinhood selects Nasdaq for eventual initial public offering: CNBC

Popular online brokerage Robinhood has selected the Nasdaq over the New York Stock Exchange for its eventual initial public offering, CNBC reported Friday, citing unnamed people familiar with the matter.

To date, Robinhood has not officially filed to go public. The company has been at the center of much debate over the role it played in the speculative, retail investor-fueled run-ups of stocks including GameStop and AMC.

12:34 p.m. ET: Stocks trade mixed, paring earlier losses

Here's where markets were trading Friday afternoon:

  • S&P 500 (GSPC): +17.86 points (+0.47%) to 3,786.33
  • Dow (DJI): +199.14 points (+0.64%) to 31,123.28
  • Nasdaq (IXIC): -30.72 (-0.24%) to 12,689.58
  • Crude (CL=F): +$2.01 (+3.15%) to $65.84 a barrel
  • Gold (GC=F): -$2.50 (-0.15%) to $1,698.20 per ounce
  • 10-year Treasury (TNX): +1.4 bps to yield 1.564%

12:00 p.m. ET: Chamath Palihapitiya exits personal position in Virgin Galactic, selling $213 million in shares

Venture capitalist Chamath Palihapitiya sold his remaining personal position in commercial space exploration company Virgin Galactic (SPCE), according to regulatory filings on Friday, two years after he helped bring the company public through a merger with a special purpose acquisition company (SPAC). He sold 6.2 million shares worth about $213 million.

Palihapitiya is still chairman of the company, and retails an about 6.6% stake in Virgin Galactic via an investment firm.

Shares of Virgin Galactic sank by more than 14% intraday on Friday following the filings.

11:43 a.m. ET: Stocks drop, erasing earlier gains

The three major indexes fell Friday intraday, turning negative after rising earlier in the session.

The Dow dipped after gaining as many as 334 points, or 1%, earlier on in the session. The S&P 500 dropped 0.5% as the Amazon and Tesla-heavy consumer discretionary sector heavily underperformed, alongside the rate-sensitive real estate and information technology sectors. Energy and consumer staples outperformed.

The Nasdaq fell by more than 1.5%, extending this week's losses for the index and putting it on track to close in a formal correction, or at least 10% below its recent record closing high.

9:30 a.m. ET: Stocks open higher after strong jobs report

Here's where markets were trading shortly after the opening bell:

  • S&P 500 (GSPC): +34.24 points (+0.91%) to 3,802.71
  • Dow (DJI): +272.11 points (+0.88%) to 31,196.25
  • Nasdaq (IXIC): +108.50 (+0.85%) to 12,831.6
  • Crude (CL=F): +$1.86 (+2.91%) to $65.69 a barrel
  • Gold (GC=F): +$3.50 (+0.21%) to $1,704.20 per ounce
  • 10-year Treasury (TNX): +4.2 bps to yield 1.592%

8:44 a.m. ET: February jobs report smashes expectations

The U.S. economy added back the most jobs in four months in February, as easing COVID-19 case counts and a ramping vaccine rollout allowed distancing restrictions to begin to moderate. The unemployment rate also unexpectedly improved during the month.

Non-farm payrolls rose by 379,000 in February, or well above the 200,000 expected. The unemployment rate dipped to 6.2%, unexpectedly improving compared to January's 6.3%. And the improvement in the jobless rate came even as the labor force participation rate steadied at 61.4%.

The February jobs report also included a notable upward revision to payrolls gains in January, but a downward revision to losses in December.

January's payroll gain was revised up to 166,000 from the tepid 49,000 previously reported. However, December's payroll losses – the first since April — were revised to 306,000, from the 227,000 reported earlier.

Altogether, the U.S. economy remains about 9.5 million payrolls short of its pre-pandemic levels.

7:25 a.m. ET Friday: Stock futures point to a mixed open

Here's where markets were trading ahead of the opening bell Friday morning:

  • S&P 500 futures (ES=F): 3,767.25, up 1.75 points or 0.05%
  • Dow futures (YM=F): 30,896.00, up 18 points or 0.06%
  • Nasdaq futures (NQ=F): 12,435.25, down 19.75 points or 0.16%
  • Crude (CL=F): $65.40 per barrel, +$1.57 (+2.46%)
  • Gold (GC=F): $1,692.60 per ounce, -$8.10 (-0.48%)
  • 10-year Treasury (TNX): +0.9 bps to yield 1.559%

6:01 p.m. ET Thursday: Stock futures trade mixed

Here's where markets were trading as the overnight session kicked off:

  • S&P 500 futures (ES=F): 3,765.00, down 0.5 points or 0.01%
  • Dow futures (YM=F): 30,890.00, up 12 points or 0.04%
  • Nasdaq futures (NQ=F): 12,435.75, down 19.25 points or 0.15%

A trader wearing a protective face mask walks, as the global outbreak of the coronavirus disease (COVID-19) continues, at the New York Stock Exchange (NYSE) in the financial district of New York, U.S., November 19, 2020. REUTERS/Shannon Stapleton

Emily McCormick is a reporter for Yahoo Finance. Follow her on : @emily_mcck

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U.S. stocks close sharply higher in volatile trade as bond yields steady after strong jobs report

US stocks close mixed after jobs report miss

U.S. stock benchmarks rebounded sharply Friday afternoon in whipsaw trade, as the rise in bond yields steadied, after a stronger-than-expected monthly jobs update from the Labor Department that offered evidence of an economy recovering from the effects of COVID-19.

All major sectors in the S&P 500 index gained while the tech-heavy Nasdaq climbed more than 1.5% as giants Inc. and Apple Inc. recovered but the index still closed lower for the week.

How are stock benchmarks performing?

  • The Dow Jones Industrial Average DJIA, +0.56% closed higher by 572.16 points, or 1.9%, around 31496.30, after trading as high as 31,580.33 and a low at 30,766,81 and posted a 1.82% this week
  • The S&P 500 index SPX, +0.56% added 73.

    47 points to close at 3,841.94, a gain of 2% and a0.81% gain for this week 

  • The Nasdaq Composite Index COMP, +0.38% gained 196.68 points, or 1.6%, to settle at 12,920.15, its best one-day rebound in about a year but still ended down 2.

    06% this week 

On Thursday, the Dow ended 345.95 points, or 1.1%, lower at a one-month nadir of 30,924.14, the S&P 500 fell 51.25 points, or 1.3%, to 3,768.47, the Nasdaq Composite Index slid 274.28 points, or 2.1%, to reach 12,723.

47, its lowest in three months and within 27 basis points of a 10% correction.

For the week, the Dow gained 1.8% and the S&P 500 added 0.8%. The Nasdaq was 2.1% lower for the week, but Friday’s rebound put it back above water for the year to date, if barely.

What drove the market?

Markets are wrestling with good news on the economic front and what that means for bond yields after the U.S. created 379,000 new jobs in February—marking the biggest increase in four months. Economists surveyed by Dow Jones had expected 210,000 jobs to have been added. The unemployment rate slipped to 6.2% from 6.3%, although economists widely believe the real rate is much higher.

“It’s kind of a tug-o-war,” explained Randy Frederick, vice president trading and derivatives at Schwab Center for Financial Research, told MarketWatch via email.

“Is good news good news, even if it means higher rates? I’m not sure the market has answered this question just yet,” he said.

The jobs data suggest that vaccination distribution and fiscal stimulus from Congress is providing a jolt to the economy and may push up inflation in the aftermath of the recession caused by the public health crisis .

“At a time when the market was already grappling with the steep rise in bond yields, the significant upside surprise to nonfarm payrolls will not be welcomed by bond investors,” wrote Seema Shah, chief strategist, at Principal Global Investors.

Friday afternoon, the yield on the 10-year Treasury note TMUBMUSD10Y, 1.663% was down about 1 basis point to 1.553%, after a sharp rise this week in the wake of comments from Federal Reserve Chairman Jerome Powell on Thursday that were seen as insufficiently concerned about the possibility of inflation as the economy recovers with help from another dose of fiscal stimulus from Washington.

However, Powell did say that the bond market selloff during the past few weeks has his attention and the central bank wouldn’t sit back and let the financial market conditions tighten broadly.

Meanwhile, the President Joe Biden’s $1.9 trillion COVID-19 financial aid plan is inching through the Senate and is expected to gain approval sometime over the weekend.

Friday’s jobs report is great for the economy but more complicated for markets, said Brad McMillan, chief investment officer for Commonwealth Financial Network.

“Implications for the markets are mixed,” McMillan said. “Faster job growth means rates are ly to keep edging up, as faster growth ly means more demand for capital, and potentially more inflation. That is hitting valuations for both bonds and stocks, which should be a headwind for markets,” he added.

The market’s volatility reflects a so-called rotation highflying technology stocks, viewed as expensive by some measures, to other areas of the market considered undervalued, including energy and financials, amid the rise in bond yields.

Which stocks were in focus?

  • Chevron Corp. CVX, +0.70% said Friday it has entered an agreement to acquire the 33.925 million shares of Noble Midstream Partners it doesn’t already own in an all-stock deal. Shares climbed 4.2%.
  • Hibbett Sports Inc. HIBB said Friday it had net income of $23.9 million, or $1.39 a share, in its fiscal fourth quarter to Jan.

    30, up from $6.0 million, or 34 cents a share, in the year-earlier period. Its shares were off 3.9%.

  • Shares of Norwegian Cruise Line Holdings Ltd. NCLH dropped 12.3% Friday, after the cruise operator said it started a public offering of 47.58 million shares.
  • Shares of Big Lots Inc.

     BIG ticked up Friday, after the discount retailer reported a fiscal fourth-quarter profit that beat expectations and same-store sales that missed, amid a weaker-than-expected December, but provided an upbeat first-quarter outlook. Shares closed 2.2% higher.

  • GameStop Corp. GME, +6.

    81%  shares closed 4% higher in choppy trade, notching a weekly gain of over 35%, and just missed closing with a market cap of $10 billion.

How did other assets fare?

  • The dollar rose 0.3%, as measured by the ICE U.S. Dollar Index DXY, to 91.92.
  • Oil futures rose after the Organization of the Petroleum Exporting Countries said it would roll over current production cuts through April, the U.S. benchmark CL.1 gained 3.5% or $2.22, to trade at $66.05 a barrel, following a gain of over 4% on Thursday. Crude for April delivery CLJ21 rose $2.26, or 3.5%, to settle at $66.09 a barrel, the highest since 2019.
  • Gold futures GC00 lost $2.20, or 0.1%, to settle at $1698.50.
  • Equities finished lower in Europe, with the pan-European Stoxx 600 index SXXP booking a 0.8% loss and London’s FTSE 100 UKX finishing 0.3% lower.
  • Stocks pulled back in Asia: the Shanghai Composite SHCOMP ended Friday trade less than 0.1% lower, Hong Kong’s Hang Seng Index HSI lost 0.5%, and China’s CSI 300 000300 fell 0.3%, while Japan’s Nikkei 225 NIK shed 0.2%.


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