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Only Small Caps in the Green as of Thursday's Close
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Market indexes fought throughout Thursday’s regular trading session to make and hold onto gains, but three of the four majors came up in the red as of the closing bell: the Dow fell -170 points, -0.47%, and was underwater most of the day; the Nasdaq looked to hold its profits after yesterday’s deep cuts, but would up -0.13% on the day; and the S&P 500 played see-saw all session, closing -0.10%. Only the small-cap Russell 2000 grew +0.56%.
Participants are seeking a new equilibrium in market valuation, newly equipped as they are with the latest news on Omicron and that the Fed is looking to tighten monetary policy sooner rather than later. Yesterday’s big sell-off and today’s small one look to be squeezing a few more bubbles out of the market, and may be in the mood to await some Q4 earnings beats in the days and weeks to come before building back indexes toward those closing highs.
Earlier today, ISM Services for December outperformed expectations to 67.6%, coming down as expected from a very strong 69.1% the previous month. PMI Services yesterday also beat expectations at 57.6. Any figure north of 50 on either metric demonstrates positive growth. The services sector looks robust as of last month.
Factory Orders for November grew +1.6%, a tick behind expectations but 40 basis points stronger than the previous month. Core Cap Goods Orders, also for November, were flat, down from the October read of +0.8%.
Tomorrow morning brings us the latest Employment Situation report from the U.S. Bureau of Labor Statistics (BLS) for December, with expectations currently at 422K new jobs having been added last month. You’ll recall the previous month’s projection was way off estimates, and added only 210K new positions when expectations were for more than half a million. Perhaps we’ll see this number surprise to the upside, with upward revisions from the previous months, as well?
The Unemployment Rate continues to tick down and is expected to continue for December: to 4.1% from 4.2% in November. A year ago, we still had 6.7% unemployment, and this print has come down steadily each month since June of last year. If we do not see a big upswing in BLS jobs numbers, there may be some questions how this squares with ADP’s (ADP - Free Report) private-sector jobs report yesterday, which saw 807K new positions filled in December.
Image: Bigstock
Only Small Caps in the Green as of Thursday's Close
Market indexes fought throughout Thursday’s regular trading session to make and hold onto gains, but three of the four majors came up in the red as of the closing bell: the Dow fell -170 points, -0.47%, and was underwater most of the day; the Nasdaq looked to hold its profits after yesterday’s deep cuts, but would up -0.13% on the day; and the S&P 500 played see-saw all session, closing -0.10%. Only the small-cap Russell 2000 grew +0.56%.
Participants are seeking a new equilibrium in market valuation, newly equipped as they are with the latest news on Omicron and that the Fed is looking to tighten monetary policy sooner rather than later. Yesterday’s big sell-off and today’s small one look to be squeezing a few more bubbles out of the market, and may be in the mood to await some Q4 earnings beats in the days and weeks to come before building back indexes toward those closing highs.
Earlier today, ISM Services for December outperformed expectations to 67.6%, coming down as expected from a very strong 69.1% the previous month. PMI Services yesterday also beat expectations at 57.6. Any figure north of 50 on either metric demonstrates positive growth. The services sector looks robust as of last month.
Factory Orders for November grew +1.6%, a tick behind expectations but 40 basis points stronger than the previous month. Core Cap Goods Orders, also for November, were flat, down from the October read of +0.8%.
Tomorrow morning brings us the latest Employment Situation report from the U.S. Bureau of Labor Statistics (BLS) for December, with expectations currently at 422K new jobs having been added last month. You’ll recall the previous month’s projection was way off estimates, and added only 210K new positions when expectations were for more than half a million. Perhaps we’ll see this number surprise to the upside, with upward revisions from the previous months, as well?
The Unemployment Rate continues to tick down and is expected to continue for December: to 4.1% from 4.2% in November. A year ago, we still had 6.7% unemployment, and this print has come down steadily each month since June of last year. If we do not see a big upswing in BLS jobs numbers, there may be some questions how this squares with ADP’s (ADP - Free Report) private-sector jobs report yesterday, which saw 807K new positions filled in December.
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