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Stock Market Today- 2/4: Amazon Boosts Nasdaq, Jobs Report Shock Stokes Inflation Bets

Stocks end mixed Friday as a massive beat for January jobs gains, as well as a big revision for the December tally, has Fed rate bets accelerating.

Updated at 4:12 pm EST

Stocks ended mixed Friday as better-than-expected earnings reports boosted investor sentiment.

The Dow Jones Industrial Average finished down 21 points, or 0.06%, to 35,089, while the S&P 500 advanced 0.52% and the the Nasdaq Composite gained 1.58%.

The U.S. economy added far more new jobs than forecast last month, the Labor Department said Friday, with a big revision for its December reading. 

The Bureau for Labor Statistics said that 467,000 new positions were created last month as wages rose 5.7% from last year. 

The December tally was also revised to a whopping 510,00 from the original estimate of 199,000.

The strong gains are lifting near-term rate hike bets from the Fed, which in turn is a negative for domestic stock performance.

"[This report] only fuels the Fed’s fire to raise rates, and act quickly," said Mike Loewengart, Managing Director for investment strategy at E*TRADE from Morgan Stanley. "While they’ve already signaled that the labor market is in a good place, there was potential for Omicron to derail that progress—and that just doesn’t seem to be the case."

A hawkish European Central Bank, as well as accelerating bets on a series of near-term rate hikes from the Federal Reserve, hit sentiment hard Thursday, with tech and other bellwether stocks pulled lower by the $237 billion wipe in Meta Platforms  (FB) -  shares, the biggest single-day decline, in market value terms, on record.

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Oil prices were also in focus, with WTI crude futures rising past $92 for the first time since 2014 following another drawdown in domestic crude supplies, a stay-the-course decision on output from OPEC leaders in Vienna this week and the prospect of improved demand dynamics over the first half of the year. 

Amazon shares drove much of the Nasdaq's gains, rising 13.5% after posting stronger-than-expected second quarter earnings late Thursday while unveiling a price increase for its Prime members.

Snap  (SNAP) -  shares soared 59%, adding nearly $20 billion to the message-app maker's market value, following better-than-expected fourth quarter earnings and a robust near-term outlook.

Pinterest  (PINS) -  was also on the move, rising 11% after the image-sharing social media company posted better-than-expected fourth quarter earnings and its first-ever annual profit.

Bristol Myers Squibb  (BMY) -  gained 1.5% after stronger-than-expected fourth quarter earnings powered by impressive sales gains for its cancer and blood clot treatments.

On the downside, Ford  (F) -  fell nearly 10% after the carmaker missed Street forecasts for its fourth quarter earnings amid supply chain disruptions and surging input costs.

Ford, which is deepening its investment in electric vehicle production and plans to double its current output by 2023, sees earnings growth this year of between 15% and 20%, but that failed to lift investors' spirts after a weaker-than-expected fourth quarter tally of 26 cents per share that was well shy of analysts' estimates.

In overseas trading, Thursday's hawkish ECB turn, including comments from President Christine Lagarde that suggest the possibility of a 2022 rate hike, pulled the Stoxx 600 into a 1.4% by the close of trading in Frankfurt while the MSCI ex-Japan index added 1.07% by the close of trading in Singapore.