New York Stock Exchange opened higher following news of falling unemployment

The New York Stock Exchange continued its positive momentum at the opening, after the US employment figures and records for the Nasdaq and S&P 500 the day before: the Dow Jones advanced 0.51%, the Nasdaq of 0.29%.

On Thursday, the Dow Jones Industrial Average gained 1.08% to 31,055.86 points. The S&P 500 index had gained 1.09% to 3,871.74 points, a new record. The Nasdaq, with strong technological coloring, was also reached a new high of 13,777.74 points, advancing 1.23%.

The US labor market started to create jobs again (+49,000) in January and the unemployment rate fell sharply to 6.3% from 6.7%.

But in detail, the report of the US Department of Labor remained disappointing with strong downward revisions for job creations in November and December. In addition, several hundred thousand unemployed gave up looking for work in January, automatically lowering the unemployment rate.

This mixed picture leads investors to believe that a massive economic aid plan is more likely to find its way into Congress.

Biden’s stimulus package on track

The US Senate adopted in the early hours of Friday a budget motion paving the way for the future plan of 1.900 billion dollars wanted by Joe Biden. But this vote is still a procedural vote for now.

“The market is up early in the session, registering for a strong weekly rebound from last week’s drop, and despite the hiccups in the January jobs report offset by positive developments on future budget support “, summarized Schwab analysts.

“Looks like we are far from being out of the woods with these disappointing data” on the labor market, noted for his part JJ Kinahan of TD Ameritrade, pointing out that the job losses in December were finally 227,000 instead of the 140,000 initially estimated.

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The three main indices, dynamic at the opening, tempered their optimism a little later. “Despite their early strength on Friday, investors may be wary of pressure later in the session to take profits, especially after such a strong week,” averti JJ Kinahan.

Among the actions of the day, the title of intelligent exercise bikes Peloton lost 8% despite good results but problems with stocks and delays in delivery of its ultra-popular machines with the pandemic.

Despite its losses, Ford was hailed (+ 1.32%) after announcing a doubling of its investments in electricity.

The energy sector of the S&P 500 led the increase (+ 1.10%) in the wake of crude prices which were heading to a high since the pandemic.

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