U.S. Stocks Rise Amid Earnings and Weak Jobs Report

U.S. stocks rose on Friday as investors assessed strong earnings from Amazon, while the U.S. economy posted fewer jobs than expected in October, suggesting an imminent Federal Reserve rate cut.

By 09:35 ET (13:35 GMT), the Dow Jones Industrial Average was up 200 points, or 0.5%. The S&P 500 index traded 30 points, or 0.5%, higher, and the NASDAQ Composite climbed 115 points, or 0.6%.

Weak Payrolls Report

Economic data released earlier on Friday indicated that the U.S. economy added only 12,000 nonfarm payrolls in October, significantly lower than the anticipated 106,000, and a decline from the revised 223,000 in September.

The Labor Department stated that recent hurricanes and ongoing labor actions likely impacted payroll estimates, making it difficult to quantify their exact effects on employment changes, hours, or earnings.

The upcoming Federal Reserve meeting is expected to conclude with another interest rate cut of approximately 25 basis points, given these employment figures.

Apple and Amazon in the Spotlight

Tech giants Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) reported quarterly results after Thursday's market close. Apple stock dropped about 2% after the company provided a revenue forecast that fell short of expectations for the holiday period. In contrast, Amazon's stock surged over 7% after reporting an 11% increase in quarterly revenue, benefiting from significant advancements in generative AI.

Oil companies Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) also saw their shares rise over 2% following positive profit reports and share buybacks.

Crude Ends Week on a Positive Note

Oil prices increased on Friday, regaining some losses from earlier in the week amid heightened tensions in the Middle East. By 13:35 ET, Brent crude rose 2.2% to $74.43 per barrel, while U.S. crude futures increased 2.5% to $71.00 per barrel. Both contracts are on track for a weekly decline up to 2%, after previously dropping over 6% on a reduced risk of broader conflict in the Middle East.

A report suggested that Iran is preparing to retaliate against Israel following a strike initiated by Israel on October 26, contributing to the change in market sentiment. Additionally, a report from China indicated a rebound in manufacturing activity in October, further influencing oil prices.