LearnTrade.ca -- U.S. stocks traded in a mixed fashion Friday, as investors digested stronger than expected jobs data as well as generally positive corporate earnings.
By 06:35 ET (14:35 GMT), the Dow Jones Industrial Average was 115 points, or 0.3%, lower, while the S&P 500 traded 6 points, or 0.1%, higher and the NASDAQ Composite climbed 65 points, or 0.4%.
Nonfarm payrolls jump in January
The U.S. economy added far more jobs than expected in January, with nonfarm payrolls in the world's largest economy rising by 353,000 last month, much more than the 187,000 jobs expected.
This release pointing to lingering strength in the labor market that could bolster the case for the Federal Reserve to delay cutting interest rates, potentially weighing upon economic activity going forward.
However, this comes after a surprise jump in jobless claims and a weak private payrolls report earlier in the week, suggesting the underlying strength of the labor market is unclear. .
The Federal Reserve kept interest rates on hold at more than two-decade highs on Wednesday, but Chair Jerome Powell poured cold water on the idea of rate cuts as early as March in his accompanying press conference.
Meta Platforms pays first-ever dividend
Countering the difficult economic news have been generally positive earnings from the mega-cap tech sector.
Meta Platforms (NASDAQ:META) stock rose 15% after profit at the Facebook parent tripled from a year earlier, resulting in the tech giant paying a dividend for the first time as well as an additional $50 billion in share buybacks.
Amazon (NASDAQ:AMZN) also gained 5.6% after the online retailing giant swung back to a full-year profit of more than $30 billion, announcing $170 billion in quarterly sales.
Exxon Mobil Corp (NYSE:XOM) stock rose 0.7% after the oil major reported higher-than-anticipated fourth-quarter profit largely thanks to a spike in U.S. oil production that has offset moderating crude prices.
Chevron (NYSE:CVX) stock rose 1.2% after the energy giant posted fourth-quarter income that topped average analyst estimates due to a spike in production, leading the energy supermajor to bump up its quarterly dividend.
Apple (NASDAQ:AAPL) provided the blip to the positive news, as although the iPhone maker’s fiscal first-quarter results beat expectations, sales of its key product disappointed following weakness in China amid rising competition. Its stock fell 3.1%.
Crude on track for hefty weekly loss
Oil prices fell Friday after the strong jobs report and following unsubstantiated reports that a ceasefire between Israel and Hamas was being discussed.
By 09:35 ET, the U.S. crude futures traded 1.6% lower at $72.61 a barrel, while the Brent contract dropped 1.3% to $77.65 per barrel.
Both contracts were on course for weekly losses of over 6%, as an end to the war between Israel and Iran-backed Hamas would lessen the tensions in the Middle East, easing concerns about supply disruptions through this key oil-rich region.