US Stock Market Overview – Stocks Surge Following Robust Employment Report

Stock Close at All-time Highs
David Becker

US stocks surged higher on Friday, following a stronger than expected US jobs report. US yields moved higher in the wake of the stronger than expected numbers. Apple shares continued to rally, climbing another 2.2% on Friday and finishing the week up 3.75%. Most sectors were higher, led by energy and industrials, real-estate and utilities bucked the trend. In addition to the better than expected jobs data, the ISM reported better than expected manufacturing data.

Jobs Data Beat Expectations.

US Nonfarm payrolls rose by 128,000 in October, according to the BLS above expectations. The strong number beat even with a decline of 42,000 in the motor vehicles and parts industry due to the loss of jobs that came due to the General Motors strike. Both August and September jobs data was revised higher. August’s initial 168,000 estimates came all the way up to 219,000 while September’s jumped from 136,000 to 180,000. Together, the new estimates added 95,000 positions for the two-month period, bringing the three-month average to 176,000.

The unemployment rate, which is a household survey and different from the corporate jobs count, ticked higher to 3.6%, in line with estimates, but remains around the lowest in 50 years. The U6 which is a broader measure of employment edged up to 7%. The pace of average hourly earnings increased 0.1% to a year-over-year 3% gain, also in line with estimates. The average workweek was unchanged at 34.4 hours.

Manufacturing Sentiment Rose

The Institute of Supply Management (ISM) reported that last month its index rose to 48.3% from a 47.8% reading in September. The reading missed expectations which were for a reading f 49.1%.  A six-week strike by General Motors workers weighed on the reading. The production index was only 46.2% in October, compared with the September reading of 47.3%. The backlog of orders index was 44.1%, contracting for the sixth straight month, versus the September reading of 45.1%. Prices decreased for the fifth consecutive month.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.