January's Job Growth Raised Prospects of Future Downward Revisions

Barry Adams
11 Feb, 2026
New York City

Wall Street indexes meandered on Wednesday as investors awaited the release of key economic data this week. 

The S&P 500 index decreased 0.1%, and the tech-heavy Nasdaq Composite declined 0.2% as investors reacted to the latest corporate results. 

The U.S. economy likely added 130,000 net new jobs in January, reinforcing signs of a cooling job market as employers shift their focus on cutting operating costs in the face of a sharp jump in tariffs. 

The jobless rate fell to 4.3%, while annual wage gains slowed to 3.7% from 3.8% in December. 

The Bureau of Labor Statistics also released its annual benchmark revisions and updated seasonal adjustment factors, and these revisions are expected to confirm a sharply slower pace of hiring in 2025.  

The change in total nonfarm payroll employment for November was revised down by 15,000 to 41,000, and the change for December was revised down by 2,000,  to 48,000. 

With these revisions, employment in November and December combined is 17,000 lower than previously reported. 

After the revisions, U.S. employers added 181,000 net new jobs in 2025, sharply lower than the previous estimate of 584,000.  

 

U.S. Movers

Lyft Inc. decreased 17.7% to $13.86 after the ride-hailing platform operator's first quarter adjusted earnings outlook fell short of market expectations. 

Revenue in the fourth quarter increased 3% to $1.6 billion from $1.55 billion, net income soared to $2.8 billion from $61.7 million, and diluted earnings per share rose to $6.72 from 15 cents a year ago. 

The fourth quarter results included a benefit from the release of the valuation allowance. 

Gross bookings increased to $5.1 billion from $4.3 billion, active riders rose to 29.2 million from 24.7 million, and active rides advanced to 243.5 million from 218.5 million a year ago, respectively. 

Robinhood Markets plunged 9.2% to $77.68 after the trading app operator reported weaker-than-expected revenue in the fourth quarter. 

Revenue increased 27% to $1.28 billion from $1.0 billion, net income decreased to $605 million from $916 million, and diluted earnings per share dropped to 66 cents from $1.01 a year ago. 

Net income in the prior year included $424 million from the tax benefit and regulatory accrual.   

In the fourth quarter, transaction-based revenues increased 15% to $776 million, primarily driven by other transaction revenue advances of 300% to $147 million, options revenue rises of 41% to $314 million, and equities revenue jumps of 54% to $94 million, partially offset by cryptocurrencies revenue of $221 million, which declined 38%.