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Dow Rallies Over 600 Points on Job Growth Data

This article was originally published on ETFTrends.com.

The Dow Jones Industrial Average rallied over 600 points as job growth surged to 312,000 during the month of December, handily beating economists' expectations of 176,000 nonfarm payrolls added. The data caps off what's been a rough start for the capital markets in 2019 amid global growth concerns.

"The far bigger than expected 312,000 jump in non-farm payrolls in December would seem to make a mockery of market fears of an impending recession," said Paul Ashworth, chief U.S. economist at Capital Economics. He added that the report "suggests the US economy still has considerable forward momentum."

In addition to jobs added, wages grew 3.2 percent from the previous year and 0.4 percent higher than November.

"We created jobs across the board; I don't think most of it was seasonal," said JJ Kinahan, chief market strategist at TD Ameritrade. "But the most interesting thing on this report was the amount of people who left their jobs voluntarily. I think that's a really good consumer-confidence measure."

"As much as we all got nervous about Apple yesterday … this puts a counter to that," he added.

Tech Rebounds

Tech rebounded after falling earlier this week as shares of iPhone maker Apple declined on weaker first quarter earnings guidance. Two exchange-traded funds (ETFs) with the largest capital Apple allocations-- Technology Select Sector SPDR ETF (XLK) and Vanguard Information Technology ETF (VGT) were up over 3 percent.

"While it's likely a combination of both macro and micro, the contribution of the former means that maneuvering through the upcoming earnings season will be like swimming in shark invested waters," said Peter Boockvar, chief investment officer at Bleakley Advisory Group, about what prompted Apple's guidance cut. "That said, I'd argue it's more of the latter."

Shares of Apple climbed over 3 percent after losing as much as 10 percent on Thursday. In a letter to investors, Apple CEO Tim Cook cited lower-than-expected iPhone revenue and China's weakening economy as major headwinds for the tech giant.

Apple lowered its Q1 revenue guidance to $84 billion--down from the previous projection of $89 to $93 billion.

"If you look at our results, our shortfall is over 100 percent from iPhone and it's primarily in greater China," Cook told CNBC in an interview Wednesday. "It's clear that the economy began to slow there in the second half and I believe the trade tensions between the United States and China put additional pressure on their economy."

"We had sort of a collection of items going on. Some that are macroeconomic and some that are Apple specific," added Cook. "And we're not going to sit around waiting for the macro to change. I hope that it does and I'm actually optimistic, but we are going to focus really deeply on the things we can control."

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