U.S. stocks are under pressure on Friday following the release of today non-farm payroll job report from the Department of Labor that showed payrolls increased 200,000 in January while the U.S. unemployment rate remained unchanged at 4.1 percent, the lowest level in 17 years.
The strongest gains from the payroll report was in construction that saw an increase of 36,000 in January, followed by employment in food services and drinking establishments which saw an increase of 31,000.
The closely watched average hourly earnings on private nonfarm payrolls rose by 9 cents to $26.74, following an 11-cent gain in December.
During the past year, average hourly earnings have increased by 75 cents, or 2.9 percent.
Raising Earnings Raises Prospects For Inflation, Rate Hike
Yesterday, the Bureau of Labor and Statistics reported that Unit labor costs in the nonfarm business sector increased 2.0 percent in the fourth quarter of 2017, largely from a 1.8 percent increase in hourly compensation, boosting the prospects for rising inflation and a future interest rate hike from the U.S. Federal Reserve.
The yield on the 10 yr. Treasury has jumped higher on Friday following the strong jobs report that shows expanding wage growth.
Currently, the yield on the 10 yr. Treasury is over 2.83 percent which is pressuring stocks.
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