The Dow Jones Industrial Average gained a 6-week winning streak on Friday just after data showed the government created a more significant number of jobs than what was expected.
30-stock Dow went up by 64.22 points to around 25,063.89 with companies like Exxon Mobil, Merck, as well as Chevron all able to close higher. Its sixth consecutive winning week has been the longest since 2017. The S&P 500 closed at approximately 2,706.53, which was 0.1% higher, given the offset losses in both the energy and tech sector.
Meanwhile, the Nasdaq Composite slid down 25% at 7,263.87 given Amazon shares’ decline.
In January, the Bureau of Labor Statistics released a set of data which showed that the US economy added about 304,000 jobs. Based on the poll conducted by Refinitiv, economists projected 170,000 jobs were added by the US economy. The report is said to follow a 35-day shutdown by the US government, which also commemorates the 100th consecutive month of job growth.
Such a report had been much-awaited by various investors have given their curiosity on how the economy is currently doing.
The same report, however, cited downward revision of job gains back in December. The issued wages in January also grew at a relatively slower pace than expected.
From Different Points of View
According to Bill Northey, US Bank Wealth Management’s director for senior investment, the report definitely had certain gives and takes. He also added that regardless of one’s perspective, there’s something insightful in it.
Friday’s moves came after major indexes for January indicated significant monthly gains. Dow and S&P 500’s gains last month have been the biggest since 2015.
Other critical earnings digested by Wall Street included those from companies such as Exxon Mobil, Amazon, and Merck. Amazon also reported that its fourth-quarter earnings and its revenue were relatively better than they’ve expected. For the first quarter, however, it warned about the company’s increasing investments as well as its weaker revenues.
As for Merck, the company posted revenue and profit that were better than expected, as it garnered a 2.7% increase in shares. For Exxon Mobil, stocks went up by 3.6% as soon as it reported significantly better earnings. Chevron also made a 3.2% gain resulting from its stronger-than-forecast profit.
Edward Jones’ investment strategist Kate Warne described the earnings season as reassuring. The corresponding reaction to the companies’ earnings is quite perfect as it reflects how the different investors were more concerned versus the printed numbers, and these companies are getting rewarded as they posted good results.
As of this time, more than 45% from S&P 500 have already reported this season’s earnings. Based on FactSet, out of such companies, about 68.1% were able to top analyst expectations.
JJ Kinahan, TD Ameritrade’s chief market strategist, articulated that it has been remarkably surprising for them as they expected that the current tariff situation would weigh a bit more. He also said that they didn’t hear from any CEO, so far as talking about spending on capital expenses, which goes back to such uncertainty on tariffs.
Trade Talks Aren’t Budging
Wall Street also had to put the trade talks between the United States and China under their radar. According to the negotiating teams, vital progress has been made. US President Donald Trump articulated that he would be meeting with the Chinese President (Xi Jinping) to try and come up with a trade deal that is more comprehensive.
Stocks took heart from the brewing possibilities based on trade talks between top-level management that should happen in the next couple of weeks. However, the positivity eventually cooled as soon as the government pushed the hard deadline for the deals on March 1.
Such moves on Friday came after Wall Street released its significant gain in January since 1987. With strong earnings along with an indication of pausing rate hikes from Federal Reserve has boosted confidence from investors. In January, S&P 500 ended with more than 7%.
Gains earned in January commonly translates to a relatively good year for the stocks. Based on the almanac for stock traders, S&P 500 would end a particular calendar year quite higher 87% of the time whenever January turns up to be a good month.