Things are looking up in the markets.
The Dow is up 140 points (0.9%), the S&P 500 is up 20 points (1.1%), and the Nasdaq is up 62 points (1.5%).
This comes after a mixed January jobs report.
According to the Bureau of Labour Statistics’ establishment survey, the U.S. economy added just 113,000 jobs in January, missing expectations for a gain of 180,000. However, according to the household survey the unemployment rate fell to 6.6% from 6.7% even as the labour force participation rate rose to 63.0% from 62.8%.
“The two US employment surveys painted a different picture of the health of labour markets in January,” said Barclays Michael Gapen. “On balance, we see the report as indicating that moderate job growth remains in place, which, in our view, will keep the unemployment rate on a downward path and the Fed on a trajectory of further reductions in its asset purchases.”
“We view this report as a temporary lull in hiring the last two months,” said Bank of Tokyo-Mitsubishi’s Chris Rupkey. “The trend rate of jobs creation is the 2.322 million jobs created in 2013, an average of 193K per month. GDP is 2% something, but the economy is still finding work for people out there. Our bet is the economy is stronger than today’s headline numbers, and the Fed will soon be thinking it needs to exit from stimulus policies sooner rather than later.”
U.S. futures were green ahead of the U.S. jobs report with Dow futures up by 49 points. After the ugly U.S. jobs report came out, they tanked sending Dow futures in the red by around 28 points. But then they turned around.