Closing Bell: Solid Jobs Report Overshadowed by Ongoing Market Churn

Key Points

• Major indexes were split as a stronger-than-expected jobs report supported sentiment, with the Nasdaq-100 up 0.29%, the S&P 500 flat, and the Russell 2000 down 0.38%.
• January Non-Farm Payrolls rose by 130,000 versus expectations of 66,000, and the unemployment rate ticked down to 4.3%.
• McDonald’s exceeded Q4 expectations with revenue of $7.01 billion and EPS of $3.12, fueled by strong traffic and value-menu demand.

Markets ended the day mixed after the delayed Non-Farm Employment report came in better than analyst expectations. The S&P 500 (SPX) finished flat on the session, the Nasdaq-100 (NDX) gained 0.29%, and the Russell 2000 (RUT) remained under pressure, closing lower by 0.38%. Energy, Consumer Staples, and Materials were the top-performing sectors, while Financials and Communication Services lagged.

Monthly Jobs Report Exceeds Expectations

The January Non-Farm Payroll report exceeded analyst expectations across most metrics, even when accounting for seasonal adjustments. Nonfarm payrolls increased by 130,000 jobs, well above the consensus estimate of 66,000. The unemployment rate also edged lower to 4.3% from 4.4% previously. The stronger-than-expected payroll figure was driven by private-sector hiring, with private payrolls rising by 172,000 jobs compared to estimates of 70,000.

McDonald’s Beats Earnings Expectations

McDonald’s (MCD) reported strong traffic growth during the quarter as value-menu offerings continued to gain traction with consumers. The company posted Q4 revenue of $7.01 billion, exceeding estimates of $6.84 billion, while earnings per share came in at $3.12 versus expectations of $3.05. The quarter also benefited from the “Grinch Meal” promotion during the holiday season, which the company said helped drive new sales records, including the highest single sales day in its history.

Market Events for Tomorrow

• 08:30 AM ET: Unemployment Claims
• 10:00 AM ET: Existing Home Sales
• 10:30 AM ET: Natural Gas Storage
• 01:00 PM ET: 30-YR Bond Auction
• 07:00 AM ET: FOMC Member Logan Speaks
• 07:05 PM ET: FOMC Member Miran Speaks

Notable Earnings for Tomorrow

• A.M: ABEV, AEP, BUD, BAX, BIRK, CBRE, CHKP, CROX, ETR, EXC, FTS, GTES, H, IRM, PCG, QSR, TRU, TRIP, USFD, ZBRA, ZTS

P.M: ABNB, AEM, AMAT, ANET, CAE, COIN, CRSR, DKNG, BROS, EXPE, FLO, IR, CART, FBIN, MHK, PINS, PSA, RIVN, ROKU, TOST, TWLO, VRTX, WYNN, YELP

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