The Job and Resource Fair is hosted by the Mountain Workforce Development Council in partnership with NCWorks in Hendersonville, North Carolina, United States, on Tuesday, November 19, 2024.
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This report is from today's CNBC Daily Open, the international markets newsletter. CNBC Daily Open keeps investors informed 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
Jobs explode in December
Nonfarm jobs in the United States It rose 256,000 in December, Up from 212,000 in November and above the 155,000 Dow Jones forecast, US Bureau of Labor Statistics reported Friday. The unemployment rate fell to 4.1% from 4.2% in November. Economists expect the rate to remain unchanged in December.
US markets are in the red for 2025
Markets in the United States It dropped on Friday After the release of the jobs report, which defied expectations for December. Major US indices now in the red for 2025. Pan-European Stokes 600 The index lost 0.84%, with all major stock exchanges Closing in negative territory. Euro zone government bond yields rose to multi-month highs.
Why Meta had to 'bend the knee to Trump'
dead Its announcement on Tuesday that it would cancel third-party fact-checking was seen as an attempt to appease US President-elect Donald Trump. That's why Meta had to “kneel to Trump” In the words of the former vice president of Facebook. Separately, CEO Mark Zuckerberg was interviewed on Friday on… “The Joe Rogan Experience” In it criticize apple For lackluster innovation efforts.
Apple is losing market share in China
apple Shares fell 2.4% after analyst Ming-Chi Kuo books On Friday, in December, the company iPhone shipments in China are down About 10%-12% compared to the previous year, compared to generally flat smartphone shipments. Furthermore, there is “no evidence” that Apple Intelligence is driving hardware upgrades or services revenue, according to Kuo.
TikTok may be banned in the US this week
On Friday, the US Supreme Court heard oral arguments in the case involving… The future of TikTok In the United States. the The judges seemed generally unconvinced By TikTok's main argument is that TikTok ban It violates the free speech rights of millions of users in the US, meaning the app could disappear from app stores as soon as this week.
(PRO) This week's inflation and bank earnings report
The US Consumer Price Index for December will be released on Wednesday. Will indicate if Inflationary pressures continue to influence On the economy and markets, especially after non-farm payrolls data for December came in surprisingly high. Big banks like JPMorgan Chase, Goldman Sachs and Morgan Stanley Earnings report for the second half of the week.
Bottom line
The December payrolls were 100,000 more than expected according to the Dow Jones consensus estimate.
Investors are concerned that the Fed may remain hawkish in response to the hot labor market. The market's implied probability of just one cut this year increased to 68.5% After the jobs report, according to CME Group's FedWatch metric.
Bond yields, which had already risen in recent weeks, jumped further after the jobs report was released. the 10-year Treasury bond yield Hit her Highest level since November 2023.
The market sell-off after the jobs report was rapid and unexpected. the Standard & Poor's 500 It decreased by 1.54% Dow Jones Industrial Average It decreased by 1.63% Nasdaq Composite Lost 1.63% All major indices are now in negative territory for 2025.
Good news is bad news for investors, as the cliche goes.
But we must remember that conditions are different now than they were during the peak of inflation.
The US Federal Reserve may not be as concerned about the strong labor market this time. On the contrary, he may be reassured by strong job growth, considering that concern about the employment rate was one of the reasons that prompted the Fed to make a huge decision. Interest rate cut by 50 basis points in September.
“You'll never hear me complain that we got 250,000 jobs,” said Austin Goolsbee, president of the Federal Reserve Bank of Chicago. He said On CNBC's “Squawk on the Street.” Goolsbee also noted that inflation over the past six months has been around 1.9%, or just below the Fed's target.
In times of lower inflation, strong employment numbers are a sign of the economy's resilience.
Ultimately, economic growth “means better earnings potential and reduced recession risk, and that will determine long-term returns versus sell-offs in today’s market,” said Adam Turnquist, chief technical strategist at LPL Financial.
In other words, good news can just be good news, if investors look beyond the immediate present.
— CNBC's Jeff Cox, Michael Santoli, Pia Singh and Sean Conlon contributed to this report.
