The S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) were up about 0.1% from earlier in the session, while the tech-heavy Nasdaq Composite (^IXIC) was down 0.2%. The US economy added 261,000 jobs in October, while the September count was revised upward to 315,000 from a previously reported 263,000, the Labor Department said on Friday. Economists had expected payrolls to rise 195,000 last month, according to consensus estimates compiled by Bloomberg. The unemployment rate reached 3.7%. “Today’s stronger-than-expected report shows the uphill task ahead for the Fed to fight for a resilient labor market and stable inflation,” Mike Loewengart, head of model portfolio construction at Morgan Stanley’s Global Investment Office, said in a comments via email. “While the number may be disappointing for investors hoping for a dovish Fed sooner rather than later, keep in mind that it was the lowest reading in nearly two years, so there may be signs that the market is slowing.” Investors have been betting that some signs of a cooling labor market would force the Federal Reserve to scale back its aggressive rate-hike campaign, but Chairman Jerome Powell argued on Wednesday that the light easing in data was not enough to halt hikes, with work. conditions that remain historically harsh. “Although job vacancies have moved below their highs and job growth has slowed since earlier in the year, the labor market remains out of balance, with demand significantly outstripping the supply of available workers,” he said. Powell on Wednesday after The US central bank made a fourth consecutive increase in interest rates by 75 basis points. In the third quarter of this year, payroll earnings averaged 372,000 per month. Weekly jobless claims, the most timely picture of the US labor market, are also at solid lows, with this week’s reading at 217,000. The story continues “Initial claims are not increasing one bit,” DataTrek’s Nicholas Colas said in a note. “Simply put, there is still no sign that either the Fed’s aggressive monetary policy or the tightening economic conditions it has brought about are yet to hit US labor markets.” Central banks around the world have moved in tandem with the US Federal Reserve to embark on a combative course of monetary tightening, raising concerns about the impact of synchronized rate hikes. The Bank of England raised interest rates by 75 basis points on Thursday, while European Central Bank President Christine Lagarde said in recent statements that interest rates may need to rise to restrictive levels to bring inflation back to the 2% target. While monetary policy grabbed investors’ attention this week, corporate earnings continued to rush in. Shares of Block ( SQ ) rose 16% after the company significantly beat estimates on strong performance in its Cash App and Square payment offerings. Meanwhile, PayPal ( PYPL ) saw its shares fall 4% after the company cut its revenue forecast to 8.5% from its previous outlook of 18%, even as it beat its earnings results. Shares of Twilio ( TWLO ) fell 34% after the cloud communications company missed earnings and reported softer-than-expected guidance. Shares of toymaker Funko ( FNKO ) fell 50% after the company reported a big profit loss and cut its annual forecast ahead of the holiday season. Meanwhile, shares of Alibaba ( BABA ) gained 6% alongside a rally in Chinese stocks amid speculation that the country will end its strict zero-Covid-19 policy. — Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc Click here for the latest Yahoo Finance platform stock trends Click here for the latest stock market news and in-depth analysis, including the events that move stocks Read the latest financial and business news from Yahoo Finance Download the Yahoo Finance app for Apple or Android Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn and YouTube
