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Wall Street: American employment raises questions – 10/01/2022 at 08:19

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(Photo credits: Pixabay – David Vives)

(CercleFinance.com) – The New York Stock Exchange ended lower on Friday evening following the announcement of a lower-than-expected number of job creations in December.

At the end of the session, the Dow Jones limits its decline to 36,231 points, but the Nasdaq (-0.96%) aligns an eighth session of decline out of nine and pushes the support of 15,000 points. Over the week as a whole, the Dow Jones is down 0.9% while the Nasdaq is down nearly 6%.

The Labor Department announced that the US economy had created only 199,000 non-farm jobs in December, far less than the consensus that was hoping for a rebound in the direction of 450,000 jobs.

For analysts at Commerzbank, this figure well below expectations is to be put on the account of the current shortage of manpower in the United States.

“As proof, the unemployment rate has contracted further to reach 3.9%”, argues the German bank.

This disappointing figure necessarily raises questions about the strength of growth and the timing of the monetary tightening currently operated by the Federal Reserve.

Indicators, especially those relating to employment, are particularly watched at the moment because investors know that the Fed studies them carefully before deciding on possible rate hikes.

“The increasingly pressing tensions on the labor market are causing an acceleration in wage inflation”, notes Commerzbank for its part.

“The pressure is therefore increasing on the shoulders of the Fed for a rate hike”, deduces the German establishment.

If the bets remain open for the date of the first turn of the screw that will give the central bank, investors are increasingly considering the hypothesis of a first rate hike in March.

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With the prospect of a rise in interest rates, the financial compartment recorded the best performance of the day (+ 0.7%) followed by energy (+ 0.6%) which benefited from the strength of oil prices due to the declaration of a state of emergency in Kazakhstan.

In contrast, values ​​related to utilities, technology and unconstrained consumption were hard on Friday.

The American Absci Corporation announced on Friday that it had entered into a research agreement with Merck on the design of an artificial intelligence platform dedicated to the discovery of new drugs.

Lockheed Martin has signed a $ 102 million contract to upgrade 25 Egyptian AH-64D Apache helicopters from ‘D’ to ‘E’ versions.

Constellation Brands stock rose 0.6% after the positive analysis of Jefferies. The analysts reaffirms its ‘buy’ recommendation on Constellation Brands with an adjusted price target of 316 to 310 dollars, in the wake of a reduction in its estimates of BPA 2023-24 for the group of alcoholic beverages.

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