The Dow Jones Industrial Average pared most of its early gains by midday Friday. The blue-chip index rose more than 500 points after September’s jobs report showed stronger-than-expected job gains. Discussions of China’s Covid easing policy have boosted buyer interest.
The S&P 500 and Nasdaq composite also pared initial gains. The broader index also traded flat, while the Nasdaq slipped into negative territory at midday.
The small-cap Russell 2000 led gains by nearly 1%.
Crude oil jumped almost 4%, breaking above the psychological level of $90 to trade at $91.54 a barrel.
The yield on the 10-year Treasury note climbed to 4.15%.
Volume jumped on the NYSE while it was slightly higher on the Nasdaq from the same time on Thursday.
Indications of a tight labor market persist.
The non-agricultural payroll increased by 261,000 jobs in October while the unemployment rate rose 0.2% to 3.7%. Unemployment has remained stuck in a narrow range of 3.5% to 3.7% since March.
U.S. employers have added an average of 407,000 jobs per month so far for 2022, down from 562,000 in 2021. September’s numbers have been revised to 315,000 new jobs.
According to Commonwealth Financial chief investment officer Brad McMillan, the bigger picture shows a normalizing labor market with a good mix of growth and slowdown that could put the Fed on hold in six months.
Health care, professional and technical services and manufacturing created the most jobs.
Among Dow Jones stocks, Apple (AAPL) fell nearly 3% while Microsoft (MSFT) reversed higher from bearish lows. Apple briefly tested its 200-day line after it passed its 50-day mark in October. Health officials UnitedHealth (A H) and Merck (M.K.R.) remain above their key levels.
Chinese stocks on a winning streak
Chinese stocks extended their gains on hopes of an easing Covid policy in China. Xpeng (XPEV) increased by 15%, Ali Baba (BABA) increased by 4% and Nio (NIO) jumped more than 13%. BYD (I’M GOING) slipped slightly while the Chinese internet giant Baidu (BEGINNING) gained 8%.
Initial audits of these U.S.-listed Chinese companies also ended ahead of schedule, fueling hopes of reduced regulatory hurdles for Chinese stocks.
You’re hereit is (TSLA) China shipments slowed in October to 71,704 units, after September’s record high of 83,135. Sales fell by 14%.
Previously, the electric vehicle giant slashed prices for its Model 3 and Model Y by 9% as demand waned. TSLA shares fell 1%. Rival Rivian (SHORE) increased slightly while the battery manufacturer Plug (PLUG) slipped slightly at midday.
Results move away from Dow Jones
Starbucks (SEX) posted a whopping $8.4 billion in fiscal fourth-quarter revenue while earning 82 cents per share. Stocks widened and approached a buy point of 93.58 in a flat base. They are heading for their biggest percentage increase since March 2020.
Coinbase (PIECE OF MONEY) earned $2.43 per share on revenue of $590.3 million. The shares rose more than 7%.
PayPal (PYPL) reported earnings of $1.08 per share, with revenue of $6.85 billion. Revenue rose 11% while revenue fell 3%, PayPal fell 4% at noon.
To block (SQ) Third-quarter earnings rose 68% to 42 cents a share on sales of $4.5 billion. The shares rose almost 12% in high volume.
Among the energy values, Wesco (COE) had revenue of $5.4 billion and earnings per share of $4.49. Denbury (THE) had revenue of $439 million with earnings per share of $1.90. The shares fell slightly at midday.
On the Dow Jones, Amgen (AMGN) had a strong quarter, with revenue of $6.6 billion and earnings of $4.70 per share. Amgen stock fell.
Twilio (TWLO) plunged 35% to its lowest level in four years. Several analyst downgrades added to a gloomy outlook, sending the stock lower. The cloud-based messaging platform posted sales of $983 million and a loss of 27 cents per share.
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