Retailers and other consumer companies rose as fears about rising interest rates eased.
In the Fed Funds futures market, the odds of a 50-basis-point rate increase at the Federal Reserve's next meeting dropped in the wake of the jobs data.
"The question today is what happens to that probability," said Quincy Krosby, chief global strategist at brokerage LPL Financial. "You see the market psychoanalyzing this report and psychoanalyzing the Fed."
The services sector unexpectedly contracted in December, according to a survey from the Institute for Supply Management. Consumer businesses are likely still feeling the lag effect of previous Fed rate hikes, said Krosby. "They take time to flow into the broader economy ... it takes months before that cumulative effect of all the rate hikes flows into all the crevices of the broader economy," said Krosby.
Fast-food chain McDonald's said it's planning to make "difficult" decisions about changes to its corporate staffing levels by April.
Southwest Airlines rose after the discount carrier said the December wave of cancellations would hit earnings by $725 million to $825 million.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-06-23 1729ET
