U.S. Economy Adds 517,000 Jobs in January, Unemployment Rate Falls to 3.4%
In January, the United States economy saw a considerable surge in job growth, with 517,000 jobs added – far surpassing the predicted 187,000 increase – and a drop in unemployment to 3.4%, the lowest since 1969. Hourly earnings increased by an average of 0.3%, as anticipated. The Dow Jones Industrial Average experienced a 0.1% decrease on Thursday, whereas the S&P 500 saw a 1.5% rise. The Nasdaq composite rose significantly by 3.3%, while the small-cap Russell 2000 increased by 2.1%. At the start of trading on Friday, the Dow Jones Industrial Average declined by 0.4%, while the S&P 500 decreased by 0.8%. The Nasdaq composite, which is technology-centric, dropped 0.9%, with Alphabet, Amazon and Apple contributing to the decrease.
The jobs report out on Friday showed a blowout number of 517,000 gain in employment, while the unemployment rate fell to its lowest level since 1969. Hourly earnings increased by an average of 0.3%, as anticipated. The S&P 500 fell by 1.04%, resulting The Nasdaq Composite decreased by approximately 1.59%, ending at 12,006. In contrast, the Dow Jones Industrial Average dropped 127.93 points, or 0.38%, to 33,926.01.
Nordstrom (NYSE:JWN) experienced a significant increase of 23% in share value as Ryan Cohen, an activist investor, is said to have acquired an interest and is reportedly aiming to make alterations to the board. Amazon (AMZN), Alphabet (GOOGL) and other stocks that receive a bulk of their revenue from digital advertising also rallied on the news, with Pinterest (PINS) closing up more than 8%, and Alphabet (GOOGL) and Amazon.com (AMZN) closing up more than 7%.
META Platforms (META) announced an EPS decrease of 52%, in accordance with expectations, while revenue decreased by 4%, slightly surpassing estimates. Stock prices rose sharply as the company that owns Facebook declared its intention to make 2023 a “year of efficiency” after spending heavily on the metaverse in 2022. Q1 revenue was closely monitored by Meta and capital spending as well as other projected costs for the year were significantly reduced. The company also declared a $40 billion repurchase.
On Thursday, Alphabet’s shares declined 2.6% as its December-quarter earnings and revenue were lower than what analysts had anticipated. Declining expansion in web search advertising, YouTube promotions, and cloud computing services had a negative effect on results.
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