From the Desk - Economic Commentary
Brandon Casey, Member Strategies - 1/9/2026
U.S. stocks are higher Friday morning as investors digest the latest jobs report. Though the report was somewhat mixed compared to expectations, traders believe it was good enough to delay future rate cuts to begin 2026. Investors are also monitoring a directive from President Trump to have “Representatives” buy $200 million in mortgage bonds to help drive interest rates down. All three major averages are tracking to increase by at least 1% on the week, with the DJIA up over 2%.
Looking at economic data today, nonfarm payrolls rose by 50,000 in December, below expectations of 73,000. The totals for November and October were both revised lower, with the October job losses now totaling 173,000, up from the prior estimated loss of 105,000. For the year, payrolls averaged a gain of 49,000 per month, down from 168,000 in 2024.
The unemployment rate fell to 4.4%, down from 4.5% the previous month. Average hourly earnings increased 0.3% for the month and 3.8% over the last year, up from 3.5% the previous reading. The labor force participation rate edged lower to 62.4%.
Elsewhere, U.S. housing starts unexpectedly fell 4.6% in October to an annual rate of 1.246 million, the lowest level since May 2020. Single-family starts were a bright spot, increasing 5.4% to an annual rate of 874,000. Building permits edged 0.2% lower to an annual rate of 1.412 million.
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