Dow lost 200, decliners over advancers 2-1 & NAZ declined 134. The MLP index was steady at 228 & the REIT index fell 2+ to the 388s. Junk bond funds slid lower & Treasuries were sold after yesterday's rally in yields (more below). Oil inched higher in the 81s & gold gave back 36 after yesterday's rally.
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US economy adds 263K jobs in November, as hiring remains solid
Senate passes rail strike deal that would've cost billions each day
Treasury yields popped as Nov jobs report showed the US economy added more jobs than expected. The yield on the 10-year Treasury jumped 8 basis points to 3.64%. Yesterday, it fell by as many as 19 basis points. The 2-year Treasury yield soared 14 basis points to 4.41%. Yields & prices move in opposite directions & one basis point is equivalent to 0.01%. The central bank has been trying to control inflation thru interest rate hikes & has raised rates by 75 basis points at each of its last 4 meetings. Fed officials have been indicating that the pace of rate hikes could slow down soon, & markets are now expecting the central bank to implement a 50 basis point rate hike at its Dec meeting.
Treasury yields jump after stronger-than-expected jobs report
The jobs report coming in better than expected worries investors, since it signals the FED has more work to do in its fight to control high inflation.
Dow Jones Industrials
