of November job report Labor Department data suggests the Federal Reserve still has a long way to go in its efforts to slow the economy. Specifically, the U.S. added her 263,000 jobs in November, well above expectations, while the unemployment rate remained stable at her 3.7% and average hourly earnings were down year-on-year. increased by 5.1%. The stock initially plummeted on the news, but by the end of the day it wasn’t as bad as it started.
“Investors have focused on persistent inflation and are concerned that the Federal Reserve’s aggressive interest rate hikes and balance sheet shrinkage will cause market turmoil. recessionSo today’s news of a 0.6% increase in hourly wages in the private sector easily exceeded expectations of a 0.3% increase, a painful fall amid an impressive recovery late in the fourth quarter. interception. Interactive Brokers.”The wage increase is his third straight month, just two days away. Fed Chairman Jerome Powell “It suggests that a weakening labor market is needed to curb decades of high inflation.”
As such, major market indices suffered losses ranging from 0.9% to 1.6% at the start of the session amid concerns that central banks will likely have to hold interest rates longer to keep inflation in check. I was.
But the devil is in the details, says Darryl Patten, senior vice president and financial advisor at wealth management firm Fort Pitt Capital. While the jobs numbers look strong on the surface, Patten says it’s important to look closer. He notes that most of the job growth comes from the service sector, with construction and manufacturing being the two slowest-paced sectors of job growth.
“This supports our view that overall consumer spending will shift from goods to services, Yesterday’s ISM manufacturing reportsays Patten. “As interest rates rise, spending on services is reversing.”
This thinking may have caused the stock to pull away from the session lows.High-tech heavy despite being sharply low in the open NASDAQ Composite It ended the day down 0.2% at 11,463. S&P500 Index was 0.1% off at 4,071.blue chip Dow Jones Industrial Average It rose in the close and closed 0.1% at 34,429.
Hottest Upcoming IPOs to Watch
In the coming weeks, investors will start to worry about the outlook for 2023. Here at Kiplinger, we’ve already started our look-ahead list, and recently we’ve been digging deep into the top initial public offerings (IPOs) investors should watch out for. towards the new year. The IPO market is expected to slow down significantly in 2022 and not recover dramatically in 2023, but there are still some big names on the list. Hottest Upcoming IPOsincludes Arm, one of the world’s largest semiconductor companies.