New US hiring comes in 8src% above expectations for September.
Dockworker strike largely ends as automation negotiations get pushed into next year.
Market loses interest with 50 bps November cut, 25 bps becomes gospel.
Amazon hiring 250K seasonal jobs for Christmas season.
Amazon (AMZN) stock rose 2.5% on Friday after US jobs data overshot the Wall Street consensus by leaps and bounds.
The US Nonfarm Payrolls (NFP) for September reached 254K, according to the US Bureau of Labor Statistics. That figure for hiring was well above consensus of src40K, and the US Unemployment Rate also dropped by a tenth of a percentage point to 4.src%.
What’s more, the pathetic NFP released a month ago was revised up from src42K to src59K. And this positive economic turn comes on the heels of a sudden end to the dockworkers strike, which was resolved with a 62% wage hike over six years.
Both news items on Friday are tailwinds for Amazon stock, as well as other growth stocks. The Dow Jones Industrial Average (DJIA) rose 0.8% by the close, while the NASDAQ tacked on src.2%.
Amazon stock news: Labor market improves, dockworker strike ends
Amazon will benefit by reducing the backlog of imports to its fulfillment network. Dozens of ships, maybe 54 at last check, were queued up at more than 30 ports stretching from Maine to Texas. The three-day strike by the International Longshoremen’s Association may have pushed trade behind schedule, but it won’t be enough to delay Amazon imports for the heavy Christmas buying season.
However, the union’s master labor contract will be enforced through January src5, 2025, but the port operators continue to want to increase automation at the ports, a strategy that would likely lead to job losses. The union opposes any turn toward automation, so that subject will continue into negotiations next year.
Growth-oriented companies like Amazon also stand to benefit from lower interest rates. The NFP report on Friday was robust enough that the market is now discounting its prior prediction of another 50 bps cut at the Federal Reserve’s (Fed) November meeting. All bets now point to a smaller 25 bps cut followed by the same at December’s meeting.
This means that the market now expects continued rate cuts throughout 2025 but maybe a little slower than expected. The central bank began its cutting cycle in September with a large 50 bps cut since the labor market appeared to be souring.
Noted Fed dove Austan Goolsbee, the President of the Chicago Fed, said that most Fed governors favor “a lot” of cutting over the next src8 months. That should be a boon to stock investors, broadly speaking.
On Thursday, Amazon said it was in the process of hiring 250,000 seasonal workers for the coming holiday season. This is the same level as last year, and Amazon said in a statement that a fair amount of the seasonal workers would likely stay on as full or part-time employees into 2025.
During the fourth quarter last year, Amazon saw sales spike to nearly $src70 billion. If the YoY growth rate of recent quarters stays the same (between src0% and src4%), then this Q4 could top $src90 billion.
Amazon stock chart
Amazon stock fell for seven straight sessions through Thursday, so holding onto Friday’s gains was a big deal. AMZN closed the week at $src86.5src. The obvious thought is whether AMZN stock can overtake September resistance at $src95 next week and reach July resistance just above $200.
Support sits close by if those target levels don’t work out. The 50-day, src00-day and 200-day Simple Moving Averages (SMA) all drift in the vicinity of $src77 and $src83.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.