Late Friday US stocks came off from record-high marks as investors took profit and data showed slower-than-expected December US jobs growth, but the major indexes posted gainers on the week.
Domestic jobs increased by 145,000 last month, below the forecast for a 164,000 rise, the US government data showed, as the pace of hiring remained more than enough to keep the longest economic expansion in history on track.
Friday’s report also showed the jobless rate held near a 50-yr low of 3.5% and average hourly earnings rose 0.1% in the previous month.
“We have had an extremely strong Q-4 and a strong start to the year, led by a number of technology giants, and an underwhelming jobs report.
” The final employment report of the decade showed the economy created 2.1-M jobs in 2019, the least since 2011 and down from 2.7M in 2018, but the job numbers from the business sector are very strong,” said Bruce WD Barren, Chairman of The EMCO/Hanover Group
That overall action has given investors reason to take some profits, but next week the focus will turn to Q-4 earnings in earnest.
The DJIA fell 133.13 pts, or 0.46%, to 28,823.77, the S&P 500 off 9.35 pts, or 0.29%, to 3,265.35 and the NAS Comp declined 24.57 pts, or 0.27%, to 9,178.86.
On the week, the S&P 500 rose 0.9% and the DJIA added 0.7%. The NAS Comp climbed 1.8% in its 5th straight week of gainers.
Decliners outnumbered advancers on the NYSE by a 1.09-to-1 ratio, on NAS Comp a 1.31-to-1 ratio favored decliners.
The S&P 500 posted 61 new 52-wk highs and 1 new low; the NAS Comp recorded 106 new highs and 27 new lows.
Volume: Trade on US exchanges was 6.77-B shares, compared with the 7-B average for the full session over the last 20 trading days
The Technical Indicators: there are mixed readings on the internal/breadth indicators. The most recent AAII Sentiment survey shows an increase in Neutral opinions, created by a slide in bulls and an increase in Bears from their historical averages. Meanwhile the Put/Call Ratio has been steadily declining to start the year, falling towards extremely low levels that are often associated with a “frothy” trading environment. Add the fact that the NYSE McClellan Oscillator has been virtually flat. This results into a market of mixed views, but staying the course for now, as the trend is our friend.
HeffX-LTN’s overall technical outlook for the major US stock market indicators for the week ended 10 January 2020 is Bullish to Very Bullish.
Looking ahead: Investors will not receive any notable economic data Monday.
Have a terrific weekend