Stocks rose in overnight trading as investors ignored the worst December payroll report in a decade. Treasury yields dipped in overnight trading until sellers sold the payroll report pushing yields back up near yesterday’s high.
Nonfarm payrolls for December fell -140k which is unusual as, for the past ten years, payrolls rose in December which suggests the economy could be rolling back into a recession. The unemployment rate was flat at 6.7% and the labor force participation rate flat at 61.5%.
Average hourly earnings rose +0.8% in December and +5.1% from this time last year as those who were working saw larger paychecks. Average weekly hours fell slightly to 34.7 hours.
Stocks rallied as President-elect Biden announced there will be trillions in stimulus coming. Treasury yields fought back against their overnight drop but were unable to recover all of the increase.