(INDEXSP:.INX) rallied 1.3% to 1797.02 Friday despite a
weaker-than-expected jobs report.
The Bureau of Labor Statistics said nonfarm payrolls increased by
113,000 in January, which was well below the 180,000 Wall Street
Additionally, December 2013's 74,000 reading, which also missed
expectations by a wide margin, was revised only fractionally higher
However, the recent spate of unusually bad weather likely impacted
economists' ability to make reasonable forecasts; this raises
questions about how much traders should rely on the data, which
even in normal times can be volatile.
Investors may also be thinking that the Fed may choose to slow the
rate at which it tapers its quantitative easing activities.
Treasury traders were not as confident as US Treasury yields fell
2.7 bps to 2.675. Elsewhere in fixed income, high-yield and
emerging markets bonds were up solidly.
In all, it appears that risk assets put in a near-term bottom
between Monday and Wednesday. With negativity having grown perhaps
a little too quickly, the stage was set for a contra-rally in the
face of bad news for which the market was prepared. Incidentally,
the S&P 500 also managed to finish in the green on January 10,
the day of the weak December 2013 NFP report.
Looking closer at equities, we saw very bullish action in
economically sensitive groups like technology, industrials, and
financials, though housing stocks and small caps were a bit
sluggish in comparison.
(INDEXNASDAQ:.IXIC) outperformed, fueled by
), which reacted positively to CEO Tim Cook's interview with the
Wall Street Journal. Cook said Apple repurchased $14 billion in
stock over the past two weeks and that the company was open to
) had a spectacular day, moving up 14.3% to $74.45 after beating
fourth-quarter earnings expectations.
) fell 6.2% to $209.59 after reporting better-than-expected
fourth-quarter results but tepid forward guidance. However, the
stock finished well off its $201.98 intraday low, and social media
) rocketed higher.
Monday's Financial Outlook
There is no US economic data on the calendar for Monday.
However, we have some earnings numbers coming. Notable names
(CNA) before the open, and
Owens & Minor
(OMI) after the close.