- New hiring in the US exceeds expectations for September by 81%.
- Dockers’ strike ends as talks on automation are postponed until next year.
- The market loses interest in the 50 basis point cut in November, 25 basis points is taken as the general stance.
- Amazon hires 250,000 temporary jobs for the Christmas season.
Amazon (AMZN) rose 2.5% on Friday after US employment data far exceeded the Wall Street consensus.
US nonfarm payrolls (NFP) for September reached 254,000, according to the US Bureau of Labor Statistics. That hiring figure was well above the consensus of 140,000, and the US unemployment rate was well above the consensus of 140,000. The US also fell a tenth of a percentage point to 4.1%.
Furthermore, the pathetic NFP released a month ago was revised upward from 142,000 to 159,000. And this positive economic turn comes after the sudden end of the dockers’ strike, which was resolved with a 62% wage increase in six years.
Both of Friday’s news are tailwinds for Amazon stock, as well as other growing companies. The Dow Jones Industrial Average (DJIA) rose 0.8% at the close, while the NASDAQ added 1.2%.
Amazon Stock News: Job Market Improves, Longshoremen’s Strike Ends
Amazon will benefit by reducing the delay of imports into its fulfillment network. Dozens of ships, perhaps 54 at last check, were lined up at more than 30 ports from Maine to Texas. The three-day strike by the International Longshoremen’s Association may have slowed trade, but it won’t be enough to delay Amazon imports for the busy holiday shopping season.
However, the union’s master labor contract will apply until January 15, 2025, but port operators continue to want to increase automation at ports, a strategy that would likely lead to job losses. The union opposes any shift toward automation, so that issue will continue in next year’s negotiations.
Growth-oriented companies like Amazon will also benefit from lower interest rates. Friday’s NFP report was robust enough that the market is now discounting its previous prediction of another 50 basis point cut at the Federal Reserve’s (Fed) November meeting. All bets now point to a 25 basis point cut followed by one of the same magnitude at the December meeting.
This means the market now expects continued rate cuts throughout 2025, but perhaps a little slower than expected. The central bank began its cutting cycle in September with a large 50 basis point cut as the labor market appeared to be deteriorating.
Well-known Fed member Austan Goolsbee, president of the Chicago Fed, said most Fed governors favor “a lot” of cuts over the next 18 months. That should be a boon for stock investors, generally speaking.
On Thursday, Amazon said it was in the process of hiring 250,000 temporary workers for the upcoming holiday season. This is the same level as last year, and Amazon said in a statement that a good number of the temporary workers will likely remain as full- or part-time employees through 2025.
During the fourth quarter of last year, Amazon saw sales increase to nearly $170 billion. If the year-on-year growth rate of recent quarters remains the same (between 10% and 14%), then this fourth quarter could exceed $190 billion.
Amazon stock chart
Amazon stock fell for seven consecutive sessions through Thursday, so holding on to Friday’s gains was a big achievement. AMZN closed the week at $186.51. The obvious question is whether AMZN stock can break through the September resistance at $195 next week and reach the July resistance just above $200.
Support is nearby if those target levels are not reached. The 50-day, 100-day, and 200-day simple moving averages (SMA) are near $177 and $183. 
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
