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US Stocks Fall After Disappointing Jobs Report
US stocks fell Friday after a tumultuous week as investors analyzed news about the Omicron variant and looked for clues about whether the Federal Reserve will make changes to its monetary policies more quickly than expected.
Additionally, the November jobs report showed that the labor market’s recovery lost steam last month, with the US adding 210,000 jobs. This was well below economists’ expectations.
Looking ahead, this week, investors are anticipating a number of important events both stateside and abroad. US consumer prices for November will be released at the end of the week. Prices surged 6.2% in October, the most significant gain seen in over three decades.
Fed Chairman Jerome Powell has said that the word “transitory” no longer describes the country’s inflation situation. Another spike in consumer prices could put more pressure on the Fed to speed up the process of tapering its asset purchases. The bank could also raise interest rates sooner than it initially planned.
Internationally, Olaf Scholz will officially take over from Angela Merkel as chancellor of Germany. Merkel has been at the helm of Europe’s largest economy for the past sixteen years. Investors will be eager to see how Scholz deals with Germany’s current fourth wave of COVID infections, record inflation, and other issues.
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A Few Headlines That Should Be on Your Radar
The Week Ahead on Wall Street The job market will be front and center next week as data on job openings, turnover, and initial claims are released. Read more >> Job Market Shows Signs of Slowing in November The job market showed signs of slowing in November with the US adding 210,000 jobs. This was well below economists’ forecasts. The slowdown is coming after a strong October in which the economy added 546,000 more positions. The November jobs report indicates that job growth was beginning to slow even before the Omicron variant of COVID-19 began spreading. Job recovery could be hurt even more if the number of COVID-19 cases rises again. Read more >> American Express Global Business Travel Inks SPAC Deal Concerns about recovery in business travel are not stopping American Express Global Business Travel from going public via a SPAC deal. The company, which provides travel booking services to corporations, is 50% owned by American Express (AXP). It is merging with Apollo Strategic Growth Capital (APSG), an Apollo Global Management (APO) blank-check company. Read more >> How Do I Get the Best Interest Rate on a Loan? How can you be sure you’re getting the best rate possible on a loan? Learn how to compare loan offers with confidence. Read more >>What to Be on the Lookout for Today
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There is no economic data scheduled to be released.
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GitLab reports quarterly results. This is the first earnings report for the software development company since it went public. GitLab competes against Microsoft’s GitHub.
Financial Planner Tip of the Day
“If you’re looking to pay off your debt faster, it’s a good idea to take a look at your spending and income, find some ways to reduce your non essential spending, and then funnel any money you free up towards your debt repayment plan.”
Brian Walsh, CFP® at SoFi