On the latest trading day, US benchmark equity indexes experienced a downturn as investors interpreted recent official statistics revealing a higher-than-anticipated increase in employment during December. According to the Bureau of Labor Statistics, total US nonfarm payrolls climbed by 256,000 last month, considerably outpacing the market consensus of a 165,000 increase derived from a Bloomberg survey.
BMO Capital Markets emphasized the significance of this report, stating, "This was a robust employment report that reinforces the resilience of the US labor market and expansion and will keep the Federal Reserve on hold in January as they try to bring inflation pressures down." With such a strong jobs report, markets are increasingly confident that the central bank's Federal Open Market Committee will likely opt to maintain current interest rates during its upcoming meeting, as detailed by the CME FedWatch tool.
In the energy sector, crude oil prices saw notable movements. February West Texas Intermediate crude oil advanced by $2.63, settling at $76.55 per barrel. Meanwhile, March Brent crude, recognized as the global benchmark, also saw an uptick, last recorded at $79.67, following the Biden Administration’s implementation of additional sanctions targeting Russia's oil exports.
Additionally, in corporate news, Constellation Brands faced a significant setback as its shares plunged 17%. The beverage giant attributed this decline to a lowered annual sales outlook after its fiscal Q3 results fell short of Wall Street’s expectations. Conversely, Constellation Energy made headlines with its agreement to acquire Calpine for an impressive $26.6 billion in a combination of cash, stock, and assumed debt.
This strategic move was positively received in the market, resulting in a 25% surge in Constellation shares..