Wall Street reacted positively to job numbers – Pfizer rose after news of Corona pills

Wall Street rises after positive job numbers

The US stock market reacted positively to the October jobs numbers, which were presented one hour before the start of trading on Wall Street. The three major stock indexes rose above 0.65 percent at the open.

This is what closing time looks like on Wall Street:

  • The Dow Jones Industrial Average rose 0.57 percent.
  • The broad S&P 500 index rose 0.37 percent.
  • The Nasdaq Technology Composite Index rose 0.2 percent.

Pfizer and tourism shares are on the rise

Among individual stocks, Pfizer rose 10.88 percent after the company announced a new coronary drug that could reduce the risk of death and hospitalization by about 90 percent.

Pfizer board member Scott Gottlieb said Friday that the pandemic may be over in the United States before the effects of President Joe Biden’s demand for a vaccine take effect in early January, he wrote. CNBC.

From January 4 All Americans working in major workplaces must be vaccinated against the coronavirus.

The news sent tourism stocks higher. Shares of United Airlines and American Airlines rose 6.6 percent and 4.8 percent, respectively. Norwegian Cruise Line Stock rose 7.6%.

Meanwhile, Moderna’s stock fell further on Friday. On Thursday, the company presented third-quarter results. The company’s turnover reached five billion dollars in the third quarter. Up front, analysts forecast revenue of $6.3 billion. At the same time, the company stated that it lowered the forecast for sales of vaccines in 2021. The reason, among other things, is that the company will restructure production in order to increase capacity.

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On Friday, Moderna’s stock fell 16.56 percent, after falling 17.89 percent on Thursday.

Increasing the number of jobs

Friday’s US labor market report showed that 531,000 new jobs were created in the US in October.

The report is often referred to as the “most important number of the month,” because the numbers give an indication of how things are going in the world’s most important economy. The Federal Reserve (Fed) is following the numbers closely, and they are also being closely watched in financial markets around the world.

The increase in the number of jobs is a significant increase from last month, when 312,000 new jobs were created. Year-on-year wage growth was 4.9 percent in October, while the unemployment rate fell to 4.6 percent.

The report is being presented while there are growing concerns about the US labor market, especially the labor shortage.

So companies increased wages and provided other incentives to get people back to work.

At the same time, the US economy stagnated – US GDP rose only 2% in the summer months, well below expectations for a recovery in the US after the pandemic.

The US Federal Reserve is closely watching unemployment figures, because when they become strong enough, the bank will likely raise its key interest rate.

– It seems very likely that it is beginning to approach this threshold. The reduction in support stock purchases will start at NOK 15 billion per month in November and December, but will likely be revised upwards next year if the labor market moves in a positive direction.

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Knut A. Magnussen at DNB Markets writes in an analysis as soon as “Non-Farm Payrolls” is published.

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Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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