Stock Market Today: Dow Falls 500 Points, Bonds Gain After Hot Jobs Report (Live Coverage)

Major stock indexes fell sharply in the stock market after the December employment report came in worse than expected. Insurer Travelers (TRV) on the Dow Jones Industrial Average, while earlier gains faded Tesla (TSLA) after the company launched a new model Y in China.

In place of the chip, Taiwan Semiconductor (TSM) yielded 1% despite reporting a 57.8% jump in the local currency in December. It is considered the largest chip foundry in the world Apple (APL) and Nivea (NVDA) as large customers, said preliminary Q4 revenue was $26.36 billion, slightly ahead of FactSet’s consensus estimate of $26.3 billion. Q4 earnings are due next week and results will be Thursday before the open.

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Stock market today

The Dow Jones Industrial Average gained 1.3%, or more than 500 points, as travelers reported. The insurer’s share fell by 3 percent. Property and casualty insurers were weak in the stock market as losses from wildfires in the Los Angeles area mounted. The fire could be the costliest fire in history, causing more than $20 billion in damages, according to JPMorgan. All state (all of them) returned 4%.

Dow Jones stock Home Depot (HD) was flat and held up relatively well, with Wall Street looking ahead to rebuilding efforts in LA.

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The economy added 256,000 jobs in December, ahead of the Economist consensus estimate of 157,000. The unemployment rate unexpectedly fell and wages were slightly softer than expected. But the 10-year Treasury yield rose to 4.79%, the highest level in more than a year. The yield recently traded at 4.75%, up seven basis points.

After making good tests of the 50-day line, the Nasdaq Composite breached support levels with a 2.1% decline. The S&P 500 lost 1.6% and the Russell 2000 small-cap index fell 1.8%, falling below the 2,200 level. Volume on the Nasdaq was lower compared to the same period on Wednesday. NYSE volumes were higher.

The Nasdaq has been finding support at its 50-day moving average since Dec. 27. A large decline is not as pronounced in the S&P 500, but the index was struggling to hold support at the 50-day line.

The stock market is still focused on a big jump in the 10-year Treasury yield from mid-September. Expected rate cuts by the Federal Reserve have been largely dialed down amid concerns that a strong economy could keep inflation high.

Weak scope in the stock market

Decliners trumped bearers on the Nasdaq by about 4-to-1. The ratio was a negative 5-to-1 on the NYSE.

Delta Air Lines (D.L) jumped 11% in the stock market today after reporting Q4 results and strong guidance.

Star power (CEG) rose 21% and cleared a 14-week rally after the energy company agreed to acquire Calpine for $16.4 billion.

Follow Ken Shreve on X @IBD_KShreve For more stock market analysis and understanding.

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