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Author Topic: Dow surges more than 700 points after Powell comments, blowout jobs report  (Read 1598 times)

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Offline Right_in_Virginia

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Dow surges more than 700 points after Powell comments, blowout jobs report
« on: January 04, 2019, 07:32:06 pm »
Dow surges more than 700 points after Powell comments, blowout jobs report
CNBC, Jan 4, 2019

Stocks rallied on Friday after two positive pieces of news for the market.
 
At 8:30 a.m., the Labor Department said the U.S. economy added 312,000 jobs in December. That blew past an expectation of 176,000 jobs. Later on Friday morning, Federal Reserve Chairman Jerome Powell said the central bank will be patient in raising rates, quelling fears of tighter monetary policy in the near future.

The Dow Jones Industrial Average traded 726 points higher, or 3.2 percent, and briefly rose more than 800 points. The S&P 500 rallied 3.28 percent, with the tech sector gaining more than 4 percent. The Nasdaq Composite climbed 4.3 percent. This was a rebound from Thursday's plunge, which was triggered by a massive drop in Apple's stock.

Stocks took off after Powell hinted the central bank could pause its rate hikes, something this beaten-down market was waiting for. "As always, there is no preset path for policy," Powell said. "And particularly with muted inflation readings that we've seen coming in, we will be patient as we watch to see how the economy evolves."

More:  https://www.cnbc.com/2019/01/04/stock-market-investors-react-to-us-china-trade-talks.html
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Online DCPatriot

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Re: Dow surges more than 700 points after Powell comments, blowout jobs report
« Reply #1 on: January 04, 2019, 07:44:25 pm »
...and we're not talking about minimum wage earners here, either. 

Whatever he loses from pissed-off furloughed government workers, he gains from the Hispanic and Black vote.  And of course, anybody else over 'there' that can frame a thought without getting winded.
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Offline aligncare

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Re: Dow surges more than 700 points after Powell comments, blowout jobs report
« Reply #2 on: January 04, 2019, 07:52:49 pm »
Seems he’s learned his lesson from four months ago when he warned in a message to central bankers to brace for a round of rate hikes, which resulted in losses in some of the market gains.
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Re: Dow surges more than 700 points after Powell comments, blowout jobs report
« Reply #3 on: January 04, 2019, 07:58:01 pm »
Quote from: aligncare on January 04, 2019, 07:52:49 pm
Seems he’s learned his lesson from four months ago when he warned in a message to central bankers to brace for a round of rate hikes, which resulted in losses in some of the market gains.

It was a combination of year-end profit taking and the peculiar rate hikes that tanked the December market...IMO.

The recent HALF TRILLION $$$ loss Apple saw yesterday, affected dozens of high tech companies on the exchange.  They averaged a 4-5% drop in value.

And the Friday night news dump is record-breaking jobs numbers with more people entering the workforce and off the underground economy.  President Trump's "Ace of Trump"!   happy77
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"It aint what you don't know that kills you.  It's what you know that aint so!" ...Theodore Sturgeon

"Journalism is about covering the news.  With a pillow.  Until it stops moving."    - David Burge (Iowahawk)

"It was only a sunny smile, and little it cost in the giving, but like morning light it scattered the night and made the day worth living" F. Scott Fitzgerald

Offline GrouchoTex

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Re: Dow surges more than 700 points after Powell comments, blowout jobs report
« Reply #4 on: January 04, 2019, 07:58:50 pm »
Stocks took off after Powell hinted the central bank could pause its rate hikes, something this beaten-down market was waiting for. "As always, there is no preset path for policy," Powell said. "And particularly with muted inflation readings that we've seen coming in, we will be patient as we watch to see how the economy evolves."

A positive step, to be sure.

Good news.

Hiking (or lowering) the interest rate over fears of what may happen, instead of what is actually happening has never been a good idea.
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Offline truth_seeker

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Re: Dow surges more than 700 points after Powell comments, blowout jobs report
« Reply #5 on: January 04, 2019, 08:05:50 pm »
The Obama "recovery" was so long, so weak, it required propping up by record low rates for far too long.

Hence these rate adjustments have been a known certainty. Any blame for Trump, is not warranted.




 
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Online DCPatriot

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Re: Dow surges more than 700 points after Powell comments, blowout jobs report
« Reply #6 on: January 04, 2019, 08:08:05 pm »
Quote from: truth_seeker on January 04, 2019, 08:05:50 pm
The Obama "recovery" was so long, so weak, it required propping up by record low rates for far too long.

Hence these rate adjustments have been a known certainty. Any blame for Trump, is not warranted.

Still, with Powell's reversal today, it appears Pres. Trump paddled his ass.    :laugh:
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"It aint what you don't know that kills you.  It's what you know that aint so!" ...Theodore Sturgeon

"Journalism is about covering the news.  With a pillow.  Until it stops moving."    - David Burge (Iowahawk)

"It was only a sunny smile, and little it cost in the giving, but like morning light it scattered the night and made the day worth living" F. Scott Fitzgerald

Offline GrouchoTex

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Re: Dow surges more than 700 points after Powell comments, blowout jobs report
« Reply #7 on: January 04, 2019, 08:08:22 pm »
Quote from: truth_seeker on January 04, 2019, 08:05:50 pm
The Obama "recovery" was so long, so weak, it required propping up by record low rates for far too long.

Hence these rate adjustments have been a known certainty. Any blame for Trump, is not warranted.

You adjust upward to slow inflation, which the Fed Chairman says there's "muted" signals.
Without clear signals, no need to adjust.
I like it.
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Offline truth_seeker

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Re: Dow surges more than 700 points after Powell comments, blowout jobs report
« Reply #8 on: January 04, 2019, 08:25:44 pm »
Quote from: GrouchoTex on January 04, 2019, 08:08:22 pm
You adjust upward to slow inflation, which the Fed Chairman says there's "muted" signals.
Without clear signals, no need to adjust.
I like it.

I do not trust the FedGov regarding the subject of Inflation.

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"God must love the common man, he made so many of them.�  Abe Lincoln
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