U.S. stock futures jumped Friday when the December jobs report showed that employment was only slightly stronger and wage gains were less than expected, showing some signs of progress amid the Federal Reserve’s interest rate hikes to tame inflation.
Dow Jones Industrial Average futures rose 150 points, or 0.31%. S&P 500 futures gained 0.28%, while Nasdaq-100 futures jumped 0.39%.
The December nonfarm payrolls report showed that the U.S. economy added 223,000 jobs last month, slightly higher than the expected 200,000 jobs economists polled by the Dow Jones expected. In addition, wages grew slower than anticipated, increasing 0.3% on the month where economists expected 0.4%.
The Dow on Thursday fell more than 300 points Thursday after the release of a stronger-than-expected ADP private payrolls report. This raised concern for higher Federal Reserve rates, which in turn stoked fears that the U.S. could fall in to a recession soon.
“I’m allowing in my thinking that we could have a recession by the end of the year, and that recession will be brought about by Fed tightening, QT, quantitative tightening, a stronger dollar, or the price of oil,” said Omega Family Office’s Leon Cooperman on CNBC’s “Closing Bell: Overtime” on Thursday.
“And if we have a recession, the market will have ended its decline, say, down 35% from its peak, so that gives you the low 3,000s,” Cooperman added.
Stocks are headed for losses in the first trading week of 2023. As of Thursday’s close, the Dow is down 0.66% week to date, headed for its fourth down week in five. Meanwhile, the S&P 500 and the Nasdaq are both on pace for their fifth straight week of losses, down 0.82% and 1.54%, respectively.
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THIS MORNING’S STOCK NEWS MOVERS:
World Wrestling Entertainment — Shares advanced 9.7% after Vince McMahon elected himself executive chairman of the company despite retiring last year due to a sexual misconduct scandal.
STOCK SYMBOL: WWE
Bed Bath & Beyond — The retailer dropped 12.4%, building on the sharp losses seen Thursday, after management said the company is low on cash and considering bankruptcy. KeyBanc dropped its price target to the stock from $2 to 10 cents, citing the concern of bankruptcy and weak fundamentals.
STOCK SYMBOL: BBBY
Tesla — Shares fell 6.4% after the electric-vehicle maker lowered prices for its Model 3 and Model Y vehicles in China.
STOCK SYMBOL: TSLA
Silvergate Capital – The c/rypto-focused bank added to its Thursday losses following a downgrade from JPMorgan to neutral from overweight. The firm cited Silvergate’s worse-than-expected deposit outflows and called into question the company’s long-term profitability. Shares dropped 14% premarket, after posting a 42% loss Thursday.
STOCK SYMBOL: SI
Costco — Shares of the wholesale retailer dipped more than 1% in premarket even after the company reported solid sales number for December. Costco reported net sales of $23.8 billion in December 2022, an increase of 7% year over year.
STOCK SYMBOL: COST
Lululemon — The athletic wear maker added 1.8% following an upgrade to overweight from equal weight by Wells Fargo, which cited its momentum and attractive share price. Meanwhile, Ulta lost 1.8% after getting downgraded to under weight from equal weight. Bath & Body Works shed 1.7% after the firm moved it to equal weight from overweight.
STOCK SYMBOL: LULU
Sunrun, Sunnova, First Solar — Shares of the solar companies gained more than 1% each after being upgraded by Wells Fargo to overweight from equal weight. Analysts cited an improved regulatory backdrop in 2023 and long-term tailwinds, including ESG mandates and government and corporate de-carbonization goals.
STOCK SYMBOL: RUN
Discover Financial, Synchrony Financial — The consumer finance stocks were under pressure after being downgraded by Barclays to equal weight from overweight. Barclays analyst Mark Devries said in a note that these stocks are likely to fall if the economy enters a recession. Discover dipped 1.5% in premarket trading, while Synchrony lost 1.8%.
STOCK SYMBOL: DFS
FULL DISCLOSURE:
/u/bigbear0083 has no positions in any stocks mentioned. Reddit, moderators, and the author do not advise making investment decisions based on discussion in these posts. Analysis is not subject to validation and users take action at their own risk.
DISCUSS!
What’s on everyone’s radar for today’s trading day ahead here at r/stocks?
I hope you all have an excellent final trading day of this week ahead on this Friday, January 6th, 2023! 🙂
