U.S. payrolls rose 50,000 in December, less than expected; unemployment rate falls to 4.4%

Summary

CNBC's Rick Santelli breaks down a mixed December jobs report. Nonfarm payrolls rose only 50,000, below expectations, while the unemployment rate fell to 4.4% and wage growth came in at 0.3% m/m and 3.8% y/y. Santelli says the key positive is the lower unemployment rate and identifies the 4.20% level on the 10-year Treasury yield as the important technical level to watch.

• December nonfarm payrolls rose 50,000, below expectations, and the prior month was revised down to 56,000.
• The unemployment rate fell to 4.4%, versus expectations for 4.5%, and the prior reading was revised to 4.5%.
• Average hourly earnings rose 0.3% month-over-month and 3.8% year-over-year.
• Average weekly hours fell to 34.2, below both expectations and the prior reading.
• Labor force participation was 62.4%, as expected but below the prior 62.5%.
• The U-6 underemployment rate fell to 8.4%, which Santelli called good news.
• Santelli says the lower unemployment rate is the key takeaway from the report.
• He flags 4.20% on the 10-year Treasury yield as a significant technical level after it was tested and backed off.