Dow Gains 26 Points Because Jobs Report Is More Important Than Amazon
6:48 a.m. The Dow Jones Industrial Average appears set for a flat open. The same can’t be said for the Nasdaq Composite.
Dow futures have ticked up 26 points, or 0.1%, while S&P 500 futures have dipped 0.1%, and Nasdaq futures have dropped 0.5%.
The Nasdaq is getting hit by Amazon.com (AMZN), which has dropped 4.6% to $1,640 after reporting earnings. The earnings weren’t so bad. In fact Amazon’s profit and sales easily topped expectations. Its guidance, however, fell short of predictions.
Amazon’s impact on the S&P 500 is smaller, it is nonexistent for the Dow, which doesn’t contain the e-commerce titan. Their direction could be determined by January’s payrolls report, due this morning at 8:30. A solid report-a 180,000 increase in new jobs is expected-would indicate that the U.S. economy is still going strong. Too big an increase, though, and the Fed’s pause on interest rate hikes could be shorter than the market thinks. A big disappointment could rekindle recession fears.
And that will ultimately be more important than any one earnings report, even Amazon’s.
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