finance

What's moving the market right now: Dow down 200, strange jobs reaction, Uber spikes


Traders work on the floor of the New York Stock Exchange.

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This is a live blog. Check back for updates.

10 am: Coronavirus-impacted names are under pressure as fears linger

Hotel and cruise line companies affected by the deadly coronavirus are down big Friday, extending their declines over the past few weeks as business continues to be impacted by restricted travel in China and around the world. Shares of Wynn Resorts dropped 3.8%, bringing its year-to-date losses to 7%. Las Vegas Sands and Carnival also fell 2.8% and 2%, respectively. —Li

9:51 am: Underlying data shows little change to economy, Edward Jones strategist says

The employment report for January showed a labor market that is stuck in neutral in some ways, despite a better-than-expected overall gain, according to Nela Richardson of Edward Jones. “You also see an economy in this jobs report that continues to play to its strengths but hasn’t done a lot to shore up its weaknesses. And we see that in the different performance of the service sector versus manufacturing,” Richardson said.Wages are another area where the economy is not seeing much improvement, Richardson said. “Though wages ticked up year-over-year, they didn’t do much in January for the month. So you’re not seeing a rise in inflation, which is the concern of the Fed,” Richardson said. — Pound

9:40 am: Stocks linked to global growth leading Dow lower

Dow Inc, Caterpillar, Exxon Mobil, American Express and 3M are among the biggest losers in the Dow Jones Industrial Average, leading the benchmark to the lows of the day. All of those companies will suffer if the coronavirus slows the Chinese and global economy significantly. Dow Inc. was off by 2%. One economist warned on CNBC earlier Friday that China’s GDP growth could fall below 2% this year, though that forecast continues to be one of the more extreme views out there at the moment. — Melloy

9:31 am: Dow falls 150 points at the open

The Dow traded about 158 points lower at the open, on track to snap its four-day winning streak. The S&P 500 is down 0.3%, while the Nasdaq Composite fell 0.5%. A stronger-than-expected January jobs report earlier this morning failed to give stocks a boost. Investors sought to take profits after the big run with coronavirus fears lingering. — Li

9:25 am: Uber CEO looks to put 50 cents of every dollar of revenue growth into profits

Uber CEO Dara Khosrowshahi said the company plans to put a majority of its revenue growth this year into the bottom line. “For every dollar of revenue growth, especially from Q4 to Q4, we expect to drop 50 cents to 55 cents to the bottom line,” Khosrowshahi said on “Squawk Box.” In its fourth-quarter earnings report, the company announced a loss that was narrower than expected and moved its EBITDA profitability target to Q4 2020, rather than 2021. The CEO also told CNBC that he doesn’t anticipate the fast-spreading coronavirus to impact its overall business. Though business in North Asia and Hong Kong are down significantly, he said, as people self-quarantine to avoid the deadly virus and travel restrictions are imposed. — Bursztynsky

9:13 am: Treasury yields go to lows of day after blowout jobs number

The Treasury market is reacting the opposite of what investors might expect when the jobs number beats by a whopping 65,000. The economy created 225,000 jobs in January, sharply higher than the consensus 158,000, but stocks and bonds shrugged it off. Stock futures came off lows but returned to them and Treasury yields went to the lows of the day. The 10-year was at 1.60%. Strategists said the overall theme in the bond market this morning is worry about corona virus, ahead of the weekend. Another negative was a big hit to German industrial production, which can only get worse as China’s economy reacts to the virus. “You could argue this is a reflection of people taking advantage of cheapness in Treasurys. In other words, buy the dip because of the corona virus risk,” said Jon Hill of BMO. “Overall it was generally strong print. Not a complete one sided blowout.” —Domm

8:56 am: Job market reaction

8:50 am: Curious reaction to jobs report

The markets had a curious reaction to the better-than-expected nonfarm payrolls report. Stock futures, after an initial move higher, are now lower than they were when the report came out, with Dow futures off by 100 points and S&P 500 futures off by 0.3%. Even more interesting is the move in the 10-year yield, which fell 4 basis points to 1.6%. Some early trader theories on the counter-intuitive reaction: month-over-month wage gains disappointed, unusually warm weather was perhaps the main reason for the jump in jobs and some fatigue after a week of strong stock gains and rising yields. — Melloy

8:33 am: US added 225,000 jobs in January, versus 158,000 expected

Stock futures pared losses after the blowout January jobs report. The Labor Department said the U.S. economy added 225,000 jobs last month, beating a Dow Jones estimate of 158,000 nonfarm payrolls for January. —Li

8:24 am: Here are Friday’s biggest analyst calls of the day

  • Credit Suisse downgraded Ford to neutral from outperform
  • Goldman Sachs upgraded Domino’s Pizza to buy from neutral
  • Goldman Sachs added Workday to the conviction buy list
  • Credit Suisse downgraded Sirius XM to neutral from outperform
  • BTIG downgraded Yum Brands to neutral from buy
  • Susquehanna upgraded Twitter to positive from neutral
  • Guggenheim downgraded Twitter to neutral from buy
  • Cowen downgraded Marvell Technology to underperform from outperform
  • Gordon Haskett upgraded General Electric to hold from underperform
  • DA Davidson downgraded GrubHub to underperform from neutral
  • Benchmark initiated Boeing as buy
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CNBC Pro subscribers can read more here. —Bloom

8:12 am: Coronavirus hits major Asian markets

While the U.S. stock market has recovered most of the losses from the deadly coronavirus, major Asian markets are still in the red on concerns about the fast-spreading epidemic. The Shanghai Composite Index is down 5.7% this year, while the Taiwan SE Weighted Index fell 3.2% in 2020. Equity benchmarks in Thailand, Hong Kong and Singapore are also still negative. —Li

8:07 am: Jobs report approaches

The Labor Department’s report on nonfarm payrolls for January will set the tone for Friday. The consensus expectation is for a net gain of 158,000 jobs and a 3.5% unemployment rate, according to Dow Jones. The Labor Department is also expected to release revisions to its full-year numbers for 2019. —Pound

8:02 am: Uber climbing after improved profitability timeline

Shares of Uber climbed 7% in premarket trading after the company said during its fourth-quarter results that it expects to be profitable by the end of next year, ahead of its previous forecast. The announcement came as Uber reported a quarterly loss that wasn’t as bad as Wall Street expected, as well as improving revenue growth. —Sheetz

7:55 am: Dow futures drop about 100 points, Wall Street to snap 4-day winning streak



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