Live Updates: US Stock Market Rises After November Jobs Report Dow S&P 500 Nasdaq Update

Key Economic Data:

1. Nonfarm Payrolls (November): Watch for the latest figures on job growth and how they impact market expectations.
2. Unemployment Rate (November): An important indicator of the current job market health.
3. Average Hourly Earnings (November): Insights into wage growth and its effect on inflation.
4. Average Weekly Hours Worked (November): Provides context on labor demand and economic activity.
5. Labor Force Participation Rate (November): Reflects the share of the working-age population that is either employed or actively seeking work.

Earnings Spotlight:

• BRP (DOOO): The recreational vehicle and powersports giant will be sharing its financial results today, which investors will watch closely for performance insights and future guidance.

Stay tuned for real-time updates as these economic reports and earnings figures shape market trends and investor sentiment.

The US job market showed resilience in November, recovering from October's downturn with stronger-than-expected job growth, though the unemployment rate increased slightly.

November Employment Highlights:

• Jobs Added: 227,000, surpassing expectations of 220,000.
• Unemployment Rate: Rose to 4.2%, up from the anticipated 4.1%.
• Revised October Numbers: Adjusted to 36,000 jobs added, significantly higher than the initially reported 12,000.
• Average Hourly Earnings (Month-over-Month): Increased by 0.4%, beating expectations of 0.3%.
• Average Hourly Earnings (Year-over-Year): Rose by 4.0%, above the forecast of 3.9%.
• Labor Force Participation Rate: Stood at 62.5%.

These figures highlight a robust job market with wage growth continuing and overall employment levels showing healthy gains, despite the slight uptick in unemployment.

US stocks rose following a jobs report that aligned with expectations for a balanced economic outlook, sparking optimism for potential interest rate cuts in December and beyond.

Market Reaction:

1. Dow Jones Industrial Average (^DJI) saw a 0.3% gain.
2. S&P 500 (^GSPC) increased by 0.2%.
3. Nasdaq Composite (^IXIC), known for its tech focus, rose by approximately 0.3%.

The November report revealed 227,000 jobs were added, slightly above the forecast, indicating a strong rebound from October’s weaker data impacted by severe weather and labor strikes. However, the unemployment rate unexpectedly edged up to 4.2%, raising some questions but not dampening overall market sentiment. This report was seen as a "Goldilocks" reading—healthy enough to signal economic growth, but not too robust to rule out the possibility of future rate cuts by the Federal Reserve.

Consumers are increasingly concerned about inflation trends in the coming year. The latest consumer sentiment survey from the University of Michigan shows that people expect inflation to reach 2.9% over the next 12 months, up from last month's 2.6%. This marks the highest inflation outlook in six months, although it remains within the 2.3% to 3% range seen in the years before the pandemic.

Long-Term Inflation Forecast: Long-term inflation expectations slightly decreased to 3.1%, down from 3.2% last month.

Consumer Sentiment Snapshot: The overall consumer sentiment index increased to 74, up from 71.8 in November, indicating a slight improvement in confidence.

Political Differences in Inflation Views: Joanne Hsu, director of the Surveys of Consumers, pointed out a political divide in how inflation is perceived. "Democrats are worried that potential policy changes, such as higher tariffs, could push inflation up," Hsu said. "Republicans believe the next president will help slow down inflation significantly."

Durable Goods Purchasing Trends: The survey also showed a significant rise in consumer confidence regarding the purchase of durable goods, which increased by over 20%. However, Hsu explained that this was not necessarily a positive economic sign. Instead, it reflected consumers' efforts to buy durable items now to avoid paying higher prices later.

The latest jobs report released on Friday indicates a solid labor market, but it’s unlikely to alter the Federal Reserve’s plans for an interest rate cut later this month, barring any unexpected inflation surprises, according to Yahoo Finance's Jennifer Schonberger.

Robert Sockin, Citigroup’s senior chief economist, commented that the report aligns with what the Fed was hoping for and supports its ongoing plan to ease policy during the December 17-18 meeting. "For the Fed, this doesn’t change the narrative," Sockin said.

Following the release, traders raised the probability of a rate cut at the upcoming meeting to 91%.

While the job market remains strong and inflation continues to show some resistance, analysts agree that the Fed's approach to rate cuts in 2025 is expected to be more measured than previously anticipated.

A U.S. court has decided to back a law that could ban TikTok in the country unless its Chinese owner, ByteDance, sells the app to a U.S. company by January 19, 2025. The decision is based on concerns that TikTok might allow foreign entities to access Americans’ personal data.

The law, known as the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACAA), aims to protect U.S. citizens from security threats. TikTok argued that the law violates free speech rights under the First Amendment, but the court disagreed.

Judges ruled that the law is constitutional because it helps safeguard Americans’ privacy and limits foreign influence. TikTok now faces the choice of selling the app or being banned in the U.S.