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Stock market news live updates: January 5, 2023

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US stock futures fell in early trading on Thursday, turning lower after the ADP National Employment report showed that private payrolls rose much more than expected in December.

Futures linked to the S&P 500 (^GSPC) were down 0.5%, while futures for the Dow Jones Industrial Average (^DJI) were down by about the same amount. High tech Nasdaq Composite (^IXIC) contracts fell 0.6%.

The moves came as investors digested a bevy of labor market data and watched the central bankers’ Fedspeak. The ADP report showed that private employment rose by around 235,000 jobs in December, well above the forecast of around 150,000.

The report was the latest to show a still-tight job market amid the Federal Reserve’s campaign to curb inflation. A measure released on Wednesday found that job openings fell less than expected last month and remained high. The Labor Department’s Monthly Nonfarm Payrolls Survey will be released on Friday morning.

The scheduled speeches by Federal Reserve Chairs Raphael Bostic and James Bullard will also be closely watched on Thursday.

Meanwhile, Amazon (AMZN) stock rose 2% ahead of the market after CEO Andy Jassy said in a note on Wednesday that the company’s planned job cuts will affect at least 18,000 employees, significantly more than indicated. previously. Jassy’s memo came after the Wall Street Journal broke the news.

The number marks the biggest workforce reduction by a tech company in recent months, as a growing number of industry names lay off workers to cut costs amid more challenging market conditions. Amazon lost an estimated $834 billion in market value in 2022.

Shares in crypto-focused Silvergate Capital (SI) plunged 29% in pre-opening trade after the Wall Street Journal reported on Thursday that the bank was forced to sell assets at a sizable loss to cover $8. 1 billion in withdrawals after the FTX bankruptcy. The drop comes after the stock surged 27% on Wednesday.

In other crypto stocks, shares of Coinbase (COIN) were down 4% pre-open following a downgrade from Cowen to Market Perform from Outperform, citing a “fairly consistent reduction” in trading volumes and risk of likely regulatory action following the collapse of FTX .

“There is low visibility for stabilization in retail trade volumes in 2023 after December’s deterioration,” the company said. “Potential SEC enforcement action is elevated after FTX with unlikely regulatory certainty through 2024.”

In other stock moves, T-Mobile (TMUS) shares rose slightly in extended trading after the mobile operator reported fourth-quarter subscriber growth slightly above estimates. The company added 927,000 new phone customers in the period, compared to 921,000 calls from analysts.

Johnson & Johnson’s (JNJ) consumer health company Kenvue filed on Wednesday to be listed as a separate company, marking the first notable record of a US initial public offering in the new year.

Elsewhere, oil prices rebounded after falling nearly 10% over the past two days. US benchmark West Texas Intermediate (WTI) crude futures rose 2% to just above $74 a barrel.

Screens on the floor of the New York Stock Exchange (NYSE) show Federal Reserve Chairman Jerome Powell during a news conference after the Federal Reserve announced that interest rates will increase by half a percentage point, in New York City, USA, on December 14, 2022. REUTERS/Andrew Kelly

Screens on the floor of the New York Stock Exchange (NYSE) show Federal Reserve Chairman Jerome Powell during a press conference, Dec. 14, 2022. REUTERS/Andrew Kelly

Stocks closed higher on Wednesday after a volatile session influenced by a reading of the Federal Reserve’s December meeting minutes and economic data that showed higher-than-expected job openings and a drop in manufacturing activity for the second straight month.

Fed minutes on Wednesday showed officials opposing an “unwarranted” easing of financial conditions, even as they welcomed cooling inflation and the need to maintain a “tight policy stance” until data is more promising.

“Minutes from the December meeting show that FOMC members remain focused on current inflation and inflation risks, with fears of monetary policy overreach receiving far too little attention,” said Pantheon Macroeconomics Chief Economist Ian Shepherdson. in note.

“Don’t expect them to soften their inflation line until it becomes obvious that a serious shift in the data is underway,” he added.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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