Though stocks moved higher early in the week it ended up being a difficult week for the bulls. The Fed’s additional hawkish tone derailed the move higher and confusing employment numbers didn’t help. Today’s non-farm payroll number was 199,000 new jobs created in December, but once again that was shy of expectations which analysts had pegged at about 477,000 new jobs. But, on the other hand, the unemployment rate fell to 3.9%. Market participants really didn’t know what to do with that somewhat mixed data.
By the close, the Dow Jones Industrial Average was down 4 points to finish the day at 36,231. The S&P 500 was down 19 points to close at 4,677. The Nasdaq Composite Index was down 144 points to close at 14,935. Gold was up $6 to trade at $1,794 per ounce, while oil was down $.41 to trade at $79.05 per barrel WTI.
As interest rates have risen this week, the Nasdaq has retreated nearly 4.5%, while the S&P has retreated a little less than 2%. Again, mixed data combined with Fed hawkishness provided a headwind for stocks in this first week of trading. It’s just one week and we won’t try to read too much into it.
Have a great weekend everyone.
