Stocks rise as traders digest mixed November jobs report – .

Stocks rise as traders digest mixed November jobs report – .

Shares erased earlier gains to trade lower on Friday, as investors digested updates on the Omicron variant alongside the November Labor Department’s employment report, which was mixed compared to high expectations from Wall Street.
The S&P 500, the Dow Jones and the Nasdaq fell after an open in the green. The 10-year Treasury yield stabilized at nearly 1.45%.

Developments around the Omicron variant remained a focal point. So far, at least five U.S. states have reported at least one case of the variant. The variant has also been found in more than three dozen countries around the world, CNBC reported, citing the World Health Organization. The report also states that the WHO has so far seen “a suggestion that there is increased transmissibility” of the Omicron variant, while noting that it is still too early to determine whether it is more or less transmissible. than the Delta variant, or if it causes more serious illness.

Market moves on Friday also came after the release of the Labor Department’s employment report in November, which showed a disappointing hiring rate for the month even as the unemployment rate fell to a new low of the era of the pandemic. The wage bill gains amounted to 210,000, less than half of the 550,000 economists expected by consensus. The unemployment rate fell to 4.2%, dipping more than expected from 4.6% in October.

Friday’s moves contrast with a rally on Thursday, when market participants initially ignored the discovery of several cases in the United States.

“The markets (…) have taken into account, really, the worst-case scenario,” Jim Smiegiel, SEI’s chief investment officer, told Yahoo Finance Live.

“I think the market is shifting a bit and maybe lessening the intensity of the potential for negative results,” he added. “The big issue is even more the reaction of the world government to the variant and what that means from a lockdown standpoint. And that’s what the market is still sort of grappling with at this point. ”

Others have adopted an even more optimistic tone, suggesting that the economic impact of the Omicron variant will ultimately prove to be less drastic than initially feared.

“If you look back at Delta, there wasn’t really a significant impact in terms of real consumption… held up very well,” Garrett Melson, Natixis Investment Managers Solutions portfolio strategist, told Yahoo Finance Live on Thursday.

“And on the capital spending front, we’re still seeing signs that companies are saying they’re going to invest in their business and that’s exactly what they’re doing,” Melson added. “Lockdowns are certainly not happening here in the United States. The government has no appetite and certainly no consumer appetite. ”

10:15 a.m.ET: Docusign shares post biggest drop on record after third quarter billing, lack of guidance

Shares of software company Docusign (DOCU) fell on Friday after posting disappointing third-quarter billing results and current-quarter guidance, suggesting business activity was returning to more “normalized” levels after a outbreak induced by the pandemic.

Shares were down more than 40% in the morning session. On Thursday evening, the e-signature company announced a 28% growth in billing in the third quarter, marking a major slowdown from the previous 61% growth seen in the second quarter. Billing is a closely watched metric for software vendors with recurring revenue subscription models.

“After six quarters of accelerated growth, we’ve seen customers revert to more normalized buying habits, which has resulted in 28% year-over-year billing growth,” said Dan Springer, CEO of Docusign, in the company statement.

And for the current quarter, Docusign is forecasting revenue of between $ 557 million and $ 563 million, which is missing Wall Street’s estimate of $ 574.2 million.

9:31 am ET: Stocks open higher after mixed jobs report

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

  • S&P 500 (^ GSPC): +23.48 (+ 0.51%) to 4,600.58
  • Dow (^DJI): +125.06 (+ 0.36%) to 34,746.85
  • Nasdaq (^IXIC): +89.04 (+ 0.58%) to 15,466.81
  • Brut (CL=F): + $ 2.39 (+ 3.59%) to $ 68.89 per barrel
  • Or (CG=F): + $ 8.90 (+ 0.50%) to $ 1,771.60 per ounce
  • 10-year cash flow (^TNX): +1.1 bps for a yield of 1.46%

9:20 a.m. ET: November jobs report mixed, with disappointing wages as unemployment rate drops to pandemic-era low

The November jobs report offered a mixed bag for investors to digest, as growth in the non-farm payroll was significantly lower than consensus expectations while unemployment and labor force participation rates exceeded. estimates.

The non-farm payroll increased by 210,000 in November after a revision of 546,000 in October. It was well below the expected 550,000 jobs. The unemployment rate improved to 4.2% from 4.6% in October and hit its lowest level since February 2020.

The rate of participation in the labor market also increased slightly more than expected in November to reach 61.8%, against 61.7% expected by economists and 61.6% posted in October. The labor force participation rate was 63.3% in February 2020 before the pandemic had a significant impact on the labor market.

Yet in November, the civilian workforce was still down by around 2.4 million participants, compared to February 2020.

7:23 a.m. ET Friday: Stock futures drift sideways ahead of jobs report

Here are the main movements in the markets at the start of the overnight session:

  • S&P 500 Futures Contracts (ES = F): +0.25 point (+ 0.01%), at 4,576.00
  • Dow Futures (YM=F): +11 points (+ 0.03%), at 34,633.00
  • Nasdaq Futures (NQ = F): -1 point (-0.01%) at 15,987.50
  • Brut (CL=F): + $ 1.89 (+ 2.84%) to $ 68.39 per barrel
  • Or (CG=F): + $ 10.80 (+ 0.61%) to $ 1,773.50 per ounce
  • 10-year cash flow (^TNX): -1.8 bps for a yield of 1.432%

6:31 p.m. ET Thursday: Stock futures ahead of jobs report

Here are the main market movements during the night session:

  • S&P 500 Futures Contracts (ES = F): +11.5 points (+ 0.25%), at 4,587.25
  • Dow Futures (YM=F): +94 points (+ 0.27%), at 34,716.00
  • Nasdaq Futures (NQ = F): +34.50 points (+ 0.22%) at 16,023.00
NEW YORK, NEW YORK – AUG 10: People walk past the Wall Street Bull near the New York Stock Exchange (NYSE) on August 10, 2021 in New York City. Markets were higher in morning trading as investors look to a rare bipartisan effort in the Senate to pass a massive infrastructure bill that, if passed, will inject billions into the U.S. economy. (Photo by Spencer Platt / Getty Images)

Emily McCormick is a reporter for Yahoo Finance. Follow her on twitter


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