Thursday's sharp reversal in stock prices became old news on Friday, after major indexes surged following the March jobs report. With several important events on the horizon, volatility could continue next week.
Given this morning's stats, it's a little hard to see why stocks are up today. Bureau of Labor Statistics The US added 303,000 new jobs in March, significantly more than the 200,000 that economists expected. Additionally, the unemployment rate decreased slightly from 3.9% to 3.8%.
One positive data point supporting calls for the Fed to start cutting interest rates was average hourly wages. inflation – This was the lowest annual increase since June 2021. Still, the 0.3% month-on-month rise in wages was faster than the 0.1% rise in February.
apply Kiplinger's personal finance
Become a smarter, more informed investor.
Up to 74% off
Sign up for Kiplinger's free e-newsletter
Profit and prosper with the best expert advice on investing, taxes, retirement, personal finance and more straight to your email.
Profit and prosper with the best expert advice straight to your email.
Additionally, both the two-year and 10-year U.S. Treasury yields have soared to the high end of their year-to-date ranges as expectations for a June rate cut have eased (the odds are now 51%, compared to 59% yesterday, the paper said). became). CME Group's fedwatch tool).
All these factors together would lead you to believe that stocks will extend their decline late Thursday. But by the end of Friday, Dow Jones Industrial Average The number of cases increased by 0.8% to 38,904 cases. S&P500 was 1.1% higher at 5,204. Nasdaq Composite was 16,248, an increase of 1.2%.
“This morning's explosive jobs report shows the economy shows no signs of slowing, and consumer spending should hold up in the short term.” Chris Zaccarelli, Chief Investment Officer of the Independent Advisor Alliance. This could be bad for bond markets, he added, but stocks could continue to rise if investors prioritize strong consumer spending and corporate profits over the Fed's plans to cut interest rates.
Snowflake has been upgraded to “Purchase”
In individual stock news, snowflake (SNOW) rose 1.7% following Rosenblatt Securities analysts. Blair Abernethy has been upgraded tech stocks Buy from neutral (equivalent to hold). The analyst said Snowflake is positioned to beat first-quarter product revenue growth estimates due to strong IT spending, accelerating digital transformation trends, and “strong first-quarter performance from leading cloud service providers.” Says.
SNOW stock – as it happens. Berkshire Hathaway Stock Portfolio – The company CEO resignation. However, analysts remain bullish on the stock, as evidenced by the consensus buy recommendation. S&P Global Market Intelligence.
Tesla retracts reports of low-cost cars
tesla Meanwhile, (TSLA) fell 3.6%. Reuters reporting Electric car manufacturers have indicated they are scrapping plans for low-cost cars.
The company has not yet officially commented on this speculation, but In the post of Xon his social media platform, Tesla CEO Elon Musk wrote, “Reuters is lying (again).”
CPI and earnings season outlook
Looking ahead, there are a few things investors will be paying close attention to next week. One is the price of crude oil. Oil futures are up nearly 22% since the start of the year, which “threats the 'inflation is coming down' view and raises expectations,” he said. liz youngHead of Investment Strategy at SoFi.
Inflation will be the focus next week economic calendarthe Consumer Price Index (CPI) for March is scheduled to be released on Wednesday morning.
And finally, it's the season for financial results.Meanwhile next week earnings calendar Friday's earnings results for several major banks, including the Bank of America, were relatively light. JP Morgan Chase (JPM), marking the start of the first quarter reporting season.
