FYI: U.S. stocks rose sharply Friday, bouncing back from their worst two-day start to a year since 2000, after a strong jobs report and signs that the Federal Reserve will be flexible with its interest-rate policy.
The Dow Jones Industrial Average jumped more than 800 points Friday as better-than-expected hiring in December suggested a healthier U.S. economy than some investors and economists anticipated. Waves of volatility swept through stock and bond markets in recent weeks amid fears of slowing growth around the world.
Federal Reserve Chairman Jerome Powell’s commentary in Atlanta also boosted investor enthusiasm for stocks, helping major indexes extend gains. Mr. Powell said that U.S. data seems to be on track to sustain good momentum into the new year, but that he is watching financial markets and is “prepared to adjust policy quickly and flexibly” if necessary.
Investors took note of the comments in part due to their timing, hours after a fresh jobs report and following developments this week that stoked fears about slowing economic growth. Traders in Stifel Nicolaus’ Baltimore office plugged in their headphones Friday morning to listen to Chairman Powell’s commentary for clues about the path of Fed policy. In the weeks leading up to corporate results, remarks from the Fed and economic data are what traders and investors say they are focusing on most.
Mr. Powell appears to be “more open to listening to what the market is telling him rather than just the data is telling him,” said Justin Wiggs, Stifel’s managing director in equity trading. That is a good thing for stock investors, he added.
The Dow industrials rose 745 points, or 3.2%, in recent trading. The S&P 500 and the Nasdaq Composite gained 3.4% and 4.2%, respectively. Major indexes were led higher by tech companies and stocks most heavily exposed to the Chinese economy, such as Caterpillar, after China confirmed a two-day meeting with U.S. representatives to work to resolve the countries’ trade dispute. All three indexes were set to end the week more than 1% higher.
The yield on 10-year U.S. Treasurys, meanwhile, was last up to 2.659% from 2.557% late Thursday. Yields rise as prices fall.
All eleven of the S&P 500 Sectors led by Technology, Communication Services, and Materials finished higher.
Regards,
Ted
WSJ:
https://www.wsj.com/articles/global-stocks-climb-ahead-of-u-s-china-trade-meeting-11546593441Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2019-01-04/your-evening-briefingBloomberg:
https://www.bloomberg.com/news/articles/2019-01-03/asia-stocks-to-track-u-s-losses-on-growth-worries-markets-wrap?srnd=premiumMarketWatch:
https://www.marketwatch.com/story/stock-futures-point-to-higher-start-as-us-china-trade-talks-set-to-resume-2019-01-04/printIBD:
https://www.investors.com/market-trend/stock-market-today/dow-jones-rips-700-points-higher-these-stocks-may-beat-apple-in-2019/Reuters:
https://www.reuters.com/article/us-usa-stocks/wall-street-rallies-on-jobs-report-powell-comments-idUSKCN1OY154CNBC:
https://www.cnbc.com/2019/01/04/stock-market-investors-react-to-us-china-trade-talks.htmlU.K.:
https://www.marketwatch.com/story/london-markets-push-on-ahead-of-return-to-brexit-2019-01-04/printEurope:
https://www.marketwatch.com/story/european-markets-bounce-back-day-after-apple-triggered-turmoil-2019-01-04/printAsia:
https://www.marketwatch.com/story/nikkei-tumbles-while-markets-in-china-hong-kong-rebound-2019-01-03/printBonds:
https://www.cnbc.com/2019/01/04/bonds-jerome-powell-to-speak-and-new-nonfarm-payrolls-due.htmlCurrencies:
https://www.cnbc.com/2019/01/04/forex-markets-japanese-yen-global-economy-in-focus.htmlOil:
https://www.cnbc.com/2019/01/04/oil-markets-opec-manufacturing-downturn-in-focus.htmlGold
https://www.cnbc.com/2019/01/04/gold-markets-global-economy-stock-markets-in-focus.htmlCurrent Futures:
https://finviz.com/futures.ashx 
