U.S. Treasury Yields Rise, Stocks Waver Amid Mixed Jobs Report

Treasury yields climbed and stocks fluctuated after the latest U.S. jobs report showed a moderating labor market, indicating the Federal Reserve is likely to hold interest rates steady for now.

Key Highlights

* Nonfarm payrolls increased by 143,000 in January, below expectations.
* The unemployment rate fell to 4.0%, incorporating revisions to population estimates.
* Hourly wages surged 0.5%, stoking concerns about inflationary pressures.

Wall Street Reactions

* Bret Kenwell, eToro: Strong wage growth is positive for consumer spending but could push inflation higher.
* Ellen Zentner, Morgan Stanley Wealth Management: The payrolls number was offset by upward revisions, signaling a resilient labor market and reducing hopes for rate cuts.
* Jason Pride, Glenmede: Tightening labor market and rising wages could justify further delays in rate cuts.
* Florian Ielpo, Lombard Odier Investment Managers: The strong labor market supports higher interest rates in the U.S. for an extended period.
* Charlie Ripley, Allianz Investment Management: The Fed is likely to remain cautious, given the solid job market.
* Seema Shah, Principal Asset Management: Today's report makes a March rate cut unlikely.
* Jeffrey Roach, LPL Financial: The labor market remains strong but the surprising wage growth could delay rate cuts.
* Mark Gibbens, BOK Financial: Average hourly earnings remain elevated, keeping rate cuts on hold for now.

Market Movements

* S&P 500: Little changed
* Nasdaq 100: Little changed
* Dow Jones Industrial Average: Little changed
* Stoxx Europe 600: Little changed
* MSCI World Index: Little changed
* Bloomberg Dollar Spot Index: Little changed
* 10-year U.S. Treasury yield: Up 5 basis points to 4.48%
* German 10-year yield: Up 1 basis point to 2.39%
* British 10-year yield: Little changed at 4.49%

Corporate Highlights

* Amazon warns of potential capacity constraints in its cloud computing division.
* Apple to unveil a revamped iPhone SE.
* Pinterest reports strong holiday revenue and provides an optimistic sales forecast.
* Expedia Group posts better-than-expected gross bookings.
* Cloudflare's fourth-quarter results exceed expectations.
* Nikola Corp. reportedly explores bankruptcy filing.
* Porsche AG faces challenges in its electrification strategy.