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08.02.2021 10:40 AM
US stocks reported growth on the background of statistics from Department of Labor and expectations on stimulus package

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US stock indexes reported a solid growth of 0.3–0.6% at the close of trading on Friday. The Dow Jones Industrial Average increased by 0.30%, to 3,1148.04 points, the broad-based S&P 500 index rose by 0.39%, to 3,886.79 points and the high-tech NASDAQ jumped by 0.57% - to 13,856. 30 points

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Investors focused on the statistics on unemployment in the United States, which, according to the Department of Labor, unexpectedly fell to 6.3% in the previous month. At the same time, experts predicted that the indicator would remain at the December level of 6.7%. Also, the number of non-agricultural employment increased by 49,000, which was expected to grow by 50,000. The published data show that labor market recovery has slowed and 10 million jobs cut at the start of the COVID-19 pandemic have not been recovered.

The reason for this is the reimplementation of restrictive measures for business in several US states at the end of last year. At the same time, many restaurants and hotels were forced to suspend employees for the second or third time.

According to the Department of Labor, the trade deficit of the United States in December last year was $66.6 billion, compared with a revised November figure of $69 billion. At the same time, analysts predicted a decrease in America's foreign trade deficit to $65.7 billion from the previously announced $68.1 billion in November.

The indices were especially supported by the decision of the Democrats in Congress, who approved the preliminary plan of state support for the economy in both chambers. Recall that earlier, US President Joe Biden proposed a stimulus package amounting to $1.9 trillion. The disappointing labor market indicators only increase the prospects for the adoption of new incentives.

Shares of Estee Lauder Cos. rose 7.8% on Friday, on the back of an increase in its adjusted earnings to $2.61 per share in the second quarter of the current fiscal year, from $2.11 per share a year earlier. Experts expected the indicator to fall to $1.69 per share.

Regeneron Pharmaceuticals Inc. increased by 0.1%. In the fourth quarter of 2020, the pharmaceutical company's adjusted profit rose to $9.53 per share from $7.5 per share a year earlier. Analysts expected a rise to $8.39 per share.

GameStop Corp. quotes gained 19.2% following the withdrawal of the platform operator Robinhood Markets Inc. ahead of restrictions on trading in the company's shares.

Johnson & Johnson's market value jumped 1.5%. On Thursday, the American holding company filed an application with the US Food and Drug Administration for an emergency use authorization of its vaccine. Johnson & Johnson also plans to apply for the approval of the European regulators.

T-Mobile US Inc. sank 4.1%, even though the telecom operator reported a net income of $0.6 per share in the last quarter, which is $0.09 above the consensus forecast.

Peloton Interactive Inc. decreased by 5.9%. The growth of the company's shares could not be facilitated even by the positive reporting on the results of the second financial quarter - the net profit of the simulator manufacturer amounted to $0.18 per share against the forecast of $0.09 per share.

Irina Maksimova,
Experto analítico de InstaForex
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