- The Dow lost another third of a percent to end the trading week.
- U.S. NFP employment data was above expectations, but the U.S. unemployment rate also rose.
- Sharp losses in key stocks are dragging the Dow Jones down.
The Dow Jones Industrial Average (DJIA) fell on Friday, shedding another 140 points and pushing the stock index to the lower end, while its major peers are climbing on better-than-expected job growth in the nonfarm payrolls (NFP) sector.
Net NFP jobs in the U.S. rose strongly in November, increasing by 227,000. compared to the forecast 220 thousand, after which it recorded an improvement compared to the revised 36 thousand in October. However, the U.S. unemployment rate also rose to 4.2% as expected in November, up from 4.1% the previous month. The escalate in the number of unemployed consumers reported worsened the overall hopeful market mood, limiting the growth dynamics on global stock markets.
Markets increased their bets on a 25 basis point interest rate cut by the Federal Reserve (Fed) on December 18. Interest rate traders increased the odds of a cut of at least a quarter point in two weeks, raising them to 85%, and the remaining 15% of better-performing firms are still counting on a Fed call halt.
Dow Jones News
Despite the decline in the main index, the Dow was roughly even on Friday, with half of the stocks traded on the exchange rising during the day’s trading. However, key losses at the lower end drag down the average headline rating, with the day’s best-performing DJIA companies unable to counter the declines. Amazon ( AMZN ) rose 3% on Friday, surpassing $227 per share as the giant company’s stock price continues to surge to record highs.
Unitedhealth Group (UNH) on Friday sent the Dow Jones index tumbling another 5% to below $550 per share after the CEO of the health giant’s insurance division, UnitedHealthcare, was gunned down in broad daylight this week in New York . The head of UnitedHealthcare was leaving his hotel early in the morning to attend a general meeting. The CEO of one of the most popular claims denial companies in the U.S., which had about 30% of all health insurance claims denied, became notable posthumously as the head of an insurance company that intentionally handed over control of customer health claims to an artificial intelligence company with a 90% inaccuracy rate.
Dow Jones Price Forecast
Despite further weakening on Friday and dragging the main stock index into a down week, the Dow Jones index is firmly trending toward a bull market and remains north of 44,500. The DJIA has fallen back below the major 45,000 level this week, but bear pressure remains moderate at best.
The Dow is still up more than 18% year-to-date, after rising nearly 7.6% in November alone. A prolonged return to the 50-day exponential moving average (EMA) rising to 43,350 is likely to create a up-to-date wave of tailwinds as investors remain keen bidders.
