Indexes jump as Amazon lifts tech and jobs data boosts rate-cut views

• US stocks started November with gains even as the latest jobs came in much weaker than estimates.

• Job gains were the lowest since December 2020, impacted by hurricanes and the Boeing strike.

• Amazon shares surged on its latest earnings beat, while Apple fell on weak China results.

US stocks jumped on Friday after the October jobs report missed economist estimates, opening the door for more rate cuts from the Federal Reserve.

Major indexes rose, with the Dow Jones Industrial Average rising nearly 300 points. The Nasdaq Composite ended almost 1% higher.

The US economy added 12,000 jobs in October, well short of economist estimates of 106,000, representing the lowest job gains since December 2020.

The jobs report’s weakness was driven by disruptions from hurricanes Helene and Milton, which battered Florida and North Carolina last month, as well as an ongoing strike of about 30,000 Boeing workers.

The unemployment rate remained unchanged at 4.1%.

The weak jobs report reinforced the case for more interest rate cuts from the Fed, though it puts the Fed in a tight spot given the noise surrounding the report.

“Given the storm-related distortion, the Fed is in a tight spot as they adhere to data-dependency,” LPL chief economist Jeffrey Roach said. “The Fed will likely cut rates in the remaining two meetings as economic conditions weakened.”

Here’s where US indexes stood at the 4:00 p.m. closing bell on Friday:

Investors were also digesting earnings results from mega-cap tech giants Amazon and Apple. Both companies beat analyst estimates, with Amazon stock surging about 6%.

Apple stock fell after earnings, however, as weakness in its China business weighed on sentiment, dropping more than 1% in Friday’s session.

Here’s what else happened today:

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil rose 0.33% to $69.49 a barrel. Brent crude, the international benchmark, was higher by 0.37% to $73.08 a barrel.

• Gold dropped 0.20% to $2,743.80 an ounce.

• The 10-year Treasury yield surged nine basis points to 4.382%.

• Bitcoin declined 1.53% to $69,132.

Read the original article on Business Insider