The U.S. Labor Department announced the official unemployment rate in December rose slightly to 4.7% and that the U.S. economy added 156,000 jobs for the month. That latter figure fell short of economists' expectations of 180,000 new jobs. On the positive side, average hourly pay increased by 2.9% year over year. That's the strongest annual uptick in wages since mid-2009.
The Nasdaq and the S&P 500 hit all-time highs thanks to a strong uptick in FANG stocks. Shares of Facebook Inc. (Nasdaq: FB), Amazon.com Inc. (Nasdaq: AMZN), Netflix Inc. (Nasdaq: NFLX), and Google parent Alphabet Inc. (Nasdaq: GOOGL) all gained more than 1%.
Let's look at the numbers from Friday for the Dow, S&P 500, and Nasdaq:
Dow Jones: 19.963.80; +64.51; +0.32%
S&P 500: 2,276.98; +7.98; +0.35%
Nasdaq: 5,521.06; +33.12; +0.60%
Now, here's a look at today's most important market events and stocks, plus a preview of Monday's economic calendar.
The Dow Jones surged to within a point of the 20,000 level. The markets pushed up 75 points after investors parsed through today's employment data and shrugged off news that November factory orders dipped more than economists had expected. The Dow received a strong bump from The Walt Disney Co. (NYSE: DIS) and Goldman Sachs Group Inc. (NYSE: GS).
Investors are still weighing the timing of the next interest rate hike after the Federal Reserve tightened monetary policy for the second time in 10 years during its December FOMC meeting. According to CME Group's FedWatch, the markets have set a 70% probability that the central bank will hike interest rates three times in 2017.
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Crude oil prices were flat as traders focus extensively on individual commitments from OPEC nations to cut oil production. On Wednesday, Saudi Arabia announced it would cut 486,000 million barrels per day (BPD). But some are concerned that cuts may not come from Iraq due to Kurdish opposition and desire for autonomy.
The WTI crude oil price today was down roughly 0.1%. Meanwhile, Brent crude was flat.
But the big story today is the price of Bitcoin.
In 2016, the price of Bitcoin surged by 48%, from $775 to $1,150. But Thursday the price plunged as much as 31% before falling to around $950. Today the digital currency slipped further to about $900.
The volatility in bitcoin prices has investors wondering, "Should I sell my Bitcoin at current price levels?" Money Morning breaks down why you shouldn't let fear drive your decisions. Use this strategy, instead.
What are the stocks to watch today? They're in the pharmaceutical, retail, and technology sector.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.