4:05pm: Strong earnings boost investor sentiment
Stocks finished the week on a high note, with all three major indexes booking gains.
The Nasdaq was up 1.7% at 15,629 points, the S&P 500 had added 1.1% at 4,958 points and the Dow Jones was up 0.4% at 38,654 points.
12:05pm: Tech stocks lead gains
US stocks shrugged off a stronger-than-expected jobs report and continued to power higher at noon on Friday on the back of impressive Big Tech earnings.
The tech-laden Nasdaq led the gains, up 1.5% at 15,596 points. The S&P 500 was up 1% at 4,954 points and the Dow Jones added 0.2% at 38,591 points.
IG senior market analyst Axel Rudolph pointed out that stocks were on track for their fourth consecutive week of gains despite the US economy adding jobs for 37 months in a row and much stronger-than-forecast employment and wage growth.
“Pared back US rate cut expectations to May or perhaps even June with five instead of the previously anticipated six rate cuts now in the pipeline have swiftly propelled yields and the US dollar higher,” Rudolph said.
“Stellar after-hours results on Thursday evening by Amazon and Meta Platforms, the last of the 'magnificent seven' to report, have contributed to risk-on sentiment.”
9:40am: Stocks mixed a blow-out payrolls sink hopes of early rate cut
Stocks made mixed progress as a blow-out jobs knocked a March rate cut on the head taking some of the shine off gains by Meta and Amazon.
Shortly after the opening bell, the Dow Jones Industrial Average was down 0.4% at 38,377.32, the S&P 500 was up 0.2% at 4,916.63 and the Nasdaq Composite was up 0.7% at 15,462.19.
According to Bureau of Labor Statistics, nonfarm payroll employment rose by 353,000 in January, picking up speed from 333,000 in December, and beating the consensus of 180,000.
More, figures for November and December were revised upwards by a collective 126,000.
The US jobless rate was unmoved at 3.7% in January, the labor force participation rate, at 62.5% was unchanged while average hourly earnings rose 0.6% from December.
ING's James Knightley said the figure was "crazy strong," and means the Federal Reserve will be in "no hurry" to cut interest rates.
"This combination of strong jobs and wages with unemployment falling indicates clear strength in the US economy and even though inflation is still tracking towards 2% the Federal Reserve simply won’t consider cutting rates at the March FOMC meeting," he said.
Meta soared 19% after its dividend, buy back and stroing results - Bank of America was impressed and raised its price target to $510 from $425.
Amazon rose 7.2% while Apple slipped 2.5%.
7:00am: Nasdaq to leap as Meta and Amazon fly; Exxon and Chevron up after earnings
The Nasdaq is set to open sharply higher after gains in Meta and Amazon after the market close although the mood could be soured depending on the US jobs report.
In pre-market trading, futures for the Dow Jones Industrial Average were up 0.1%, while those for the S&P 500 rose 0.5% and contracts for the Nasdaq 100 futures climbed 1.0%.
Meta shares are up 17% in pre-market trading after it declared its first ever dividend, a $50 billion buyback and better-than-expected sales while Amazon, up 7.2%, also beat the Street.
Apple was more disappointing - shares down 2.4% - after weak Chinese sales cloude results.
Ahead of the US open, job figures are expected to show the US economy added 180,000 jobs in January, down from 216,000 in December.
Elsewhere, Chevron and Exxon Mobil are both up after earnings - Exxon posted full-year net income of $36 billion, down from $55.7 billion the previous year, but otherwise its biggest since 2012.
Chevron’s net income of $21.4 billion was down from $35.5 billion the previous year, but otherwise its strongest since 2013.