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A job and resource fair hosted by the Mountain Workforce Development Council in partnership with NCWorks in Hendersonville, North Carolina, USA on Tuesday, November 19, 2024.
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This is a report from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open provides investors with information on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Job explosion in December
US nonfarm payrolls rose by 256,000 in December, compared with 212,000 in November and above the 155,000 forecast by the Dow Jones Consensus, US Bureau of Labor Statistics reported on Friday. The unemployment rate fell to 4.1% from 4.2% in November. Economists expected that the exchange rate would be maintained in December.
US markets in the red in 2025
Markets in the USA fell on Friday after the December jobs report was released. Major US indices are now in the red for 2025. All-European Stoxx 600 the index lost 0.84%, with all major exchanges closing in on negative territory. Eurozone government bond yields rose to new multi-month highs.
Why Meta had to “bend the knee to Trump”
Meta Tuesday’s announcement to scrap third-party fact-checking was seen as an attempt to appease US President-elect Donald Trump. That’s why Matt had to “bow the knee to Trump” in the words of the former vice president of Facebook. Separately, CEO Mark Zuckerberg gave an interview on Friday at “The Joe Rogan Experience”, in which he clapped an apple for lackluster innovative efforts.
Apple is losing market share in China
an apple shares fell 2.4% after analyst Ming-Chi Kuo wrote on Friday that in December company iPhone shipments to China have declined around 10%-12% year-over-year compared to total smartphone shipments. Moreover, according to Kuo, there is “no evidence” that Apple Intelligence contributes to hardware upgrades or service revenue.
TikTok could be banned in the US this week
The US Supreme Court on Friday heard oral arguments in a case related to the future of TikTok in the United States. The the judges generally looked unconvinced the main argument of TikTok that banning TikTok violates the free speech rights of millions of US users, meaning the app could disappear from app stores as soon as this week.
(PRO) Inflation and Bank Profits Report for the week
The US consumer price index for December is released on Wednesday. It will show when inflationary pressure continues to weigh on the economy and markets, especially after December nonfarm payrolls were surprisingly strong. Major banks such as JPMorgan Chase, Goldman Sachs and Morgan Stanley earnings report in the second half of the week.
Bottom line
The number of new jobs in December was 100,000 more than expected by the Dow Jones consensus estimates.
Investors are concerned that the Fed may remain hawkish in response to a hot labor market. The market probability of only one reduction this year increased to 68.5% after the jobs report, according to CME Group FedWatch gauge.
Bond yields, already elevated in recent weeks, jumped further after the jobs report. The The 10-year Treasury yield hit him the highest level since November 2023.
The market sell-off following the jobs report was swift and unexpected. The S&P 500 fell by 1.54%. Dow Jones industrial index decreased by 1.63% and Nasdaq Composite lost 1.63%. All major indices are now in the red for 2025.
Good news is bad news for investors, as the cliché goes.
But it must be remembered that the circumstances are different now than during the peak of inflation.
The US Federal Reserve may not be so concerned about a robust labor market this time around. On the contrary, strong job growth is likely to reassure him, given that concerns about employment levels were one of the reasons the Fed decided to increase In September, the rate was reduced by 50 basis points.
“You’ll never hear me complain that we have 250,000 jobs,” Chicago Fed President Austin Goolsby said. said on CNBC’s “Rumble on the Street.” Goolsby also noted that inflation over the past six months has been around 1.9%, which is slightly below the Fed’s target.
In times of lower inflation, high employment is a sign of a resilient economy.
Economic growth ultimately “means more earnings potential, less recession risk, and that’s really going to determine longer-term returns versus a selloff in today’s market,” said Adam Turnquist, chief technical strategist at LPL Financial.
In other words, good news can just be good if investors look beyond the immediate present.
— CNBC’s Jeff Cox, Michael Santoli, Piya Singh and Sean Conlon contributed to this report.
