December Jobs Report Miss Forecasts While Unemployment Defies Expectations

Economic Indicators - The number of Americans filing for initial jobless claims rose by 8,000 to 208,000, compared to the expected 213,000 [1] - U.S. Q3 nonfarm productivity increased by 4.9% quarter-over-quarter, aligning with expectations, while unit labor costs fell by 1.9% quarter-over-quarter, which was weaker than the expected no change [1] - The U.S. trade deficit for October unexpectedly narrowed to $29.4 billion, significantly better than the expected $58.1 billion, marking the lowest monthly level since 2009 [1] - U.S. consumer credit rose by $4.23 billion in November, falling short of the expected $10.1 billion [1] Stock Market Performance - Wall Street's major indices closed mixed, with data storage companies like Seagate Technology and Western Digital experiencing declines of over 7% and 6% respectively [2] - Software stocks also retreated, with Datadog dropping over 7% and Autodesk slipping more than 5% [2] - Defense stocks saw gains after President Trump proposed increasing U.S. military spending to $1.5 trillion by 2027, with AeroVironment rising over 8% and Huntington Ingalls Industries gaining over 6% [2] Corporate News - Asml Holding rose more than 4% after HSBC raised its price target on the stock [10] - Rocket Companies and UWM Holdings advanced over 7% and 5% respectively in pre-market trading due to President Trump's plan to buy $200 billion in mortgage bonds [17] - Revolution Medicines surged over 15% in pre-market trading following reports of Merck's interest in acquiring the company [17] International Market Developments - The Euro Stoxx 50 Index increased by 0.93%, reaching a new record high, driven by strong fourth-quarter revenue from TSMC [9] - German exports unexpectedly fell by 2.5% month-over-month, while imports rose by 0.8% month-over-month [11] - Japan's Nikkei 225 Stock Index closed sharply higher, boosted by strong earnings from Fast Retailing and a weaker yen [13]