Good news doesn’t always have to be bad news for markets

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open provides investors with information on everything they need to know, no matter where they are. Do you like what you see? You can subscribe here.

Job explosion in December
US non-farm payrolls 256,000 rose in December, up from 212,000 in November and above the Dow Jones consensus estimate of 155,000, US Bureau of Labor Statistics announced on Friday. The unemployment rate fell to 4.1% from 4.2% in November. Economists had expected the rate to remain unchanged in December.

US markets in the red by 2025
US markets It fell on Friday after the release of the December jobs report that disappointed expectations. Major US indices are now in the red for 2025. European level Stoxx 600 the index lost 0.84%, with all the major stock markets closing in negative territory. Eurozone government bond yields rose to fresh multi-month highs.

Why the Meta had to “bend Trump’s knee”.
Meta’s His announcement on Tuesday that he would scrap third-party verification was seen as an attempt to appease US President-elect Donald Trump. Here’s why Meta had to “bend Trump’s knee.” In the words of the former vice president of Facebook. Separately, CEO Mark Zuckerberg was interviewed on Friday “The Joe Rogan Experience”, it was there he hit the apple due to poor innovation efforts.

Apple has lost market share in China
the apple shares fell 2.4% after analyst Ming-Chi Kuo he wrote on Friday that, in December, of the company iPhone shipments in China fell about 10-12% from a year earlier, compared to flat cell phone shipments. Also, Kuo said, there is “no evidence” that Apple Intelligence is driving hardware upgrades or service revenue.

TikTok may be banned in the US this week
The US Supreme Court heard oral arguments on the case on Friday The future of TikTok in the united states The The justices generally seemed unconvinced According to the main argument of TikTok Banning TikTok It violates the free speech rights of millions of US users, which means the app could disappear from app stores as soon as this week.

(PRO) Inflation report and weekly bank earnings
The US price index for December will be published on Wednesday. Will he express it? inflationary pressures continue to weigh in the economy and the markets, especially after December’s agricultural payrolls were surprisingly high. Such as big banks JPMorgan Chase, Goldman Sachs and Morgan Stanley report earnings in the second half of the week.

Investors were concerned that the Fed could remain hawkish in response to the hot labor market. Market implied probability of only one cut this year It has increased to 68.5% after the jobs report, he says CME Group’s FedWatch gauge.

Bond yields, which have already risen in recent weeks, jumped further on the release of the jobs report. The 10-year Treasury yield hit her Level up from November 2023.

The market sell-off following the release of the jobs report was swift and not unexpected. The S&P 500 It has decreased by 1.54%, and Dow Jones Industrial Average It decreased by 1.63% Nasdaq Composite It lost 1.63%. All major indices are now in negative territory for 2025.

Good news is bad news for investors, as the catchphrase goes.

But we must remember that the circumstances are different now than they were at the peak of inflation.

The US Federal Reserve may not be as concerned about a strong labor market this time around. On the contrary, strong job growth is probably reassuring, given that concerns about the employment rate were one of the reasons for the Fed’s jumbo decision. Rate reduction of 50 points in September.

“You’ll never hear me complain that we got 250,000 jobs,” Chicago Fed President Austan Goolsbee. he said on CNBC’s “Squawk on the Street.” Goolsbee also noted that inflation over the past six months has been around 1.9%, or below the Fed’s target.

In times of lower inflation, strong employment numbers are a sign of a resilient economy.

And ultimately, economic growth “means the potential for better earnings, lower risk of a recession, which will actually result in longer-term returns compared to selling in today’s market,” said Adam Turnquist, chief technical strategist at LPL Financial.

In other words, good news can be good news if investors look beyond the immediate present.

– CNBC’s Jeff Cox, Michael Santoli, Pia Singh and Sean Conlon contributed to this report.