Stock prices remain on the rise as the robust US labor market drives the economy
S&P 500 Index ($SPX) (spy) Friday's close was +1.11%, with the Dow Jones Industrial Average ($DOWI) (diamond) ended +0.80% higher than the Nasdaq 100 Index ($IUXX) (QQQ) ended at +1.28%.
Stock indexes recorded a modest increase on Friday. Stocks rose on Friday on optimism that a strong U.S. economy will continue to boost consumer spending and corporate profits. Stocks rose even as Friday's better-than-expected U.S. jobs report raised the possibility of a prolonged rise in interest rates. Easing wage pressures also supported stocks after Friday's payroll report showed average hourly wages slowed to +4.1% year-on-year in March, the slowest pace of growth in two to three quarters. did.
A rise in T-note yields on Friday after U.S. payrolls were much higher than expected was a negative factor for stocks. Nonfarm payrolls increased by 303,000 in March, well above expectations, the largest increase in 10 months, and there is growing speculation that the Federal Reserve will be in no hurry to cut interest rates.
The Fed's hawkish comments on Friday sent T-note yields higher and suggested the Fed will not cut rates anytime soon. Dallas Fed President Logan said it was “premature” to consider cutting interest rates, worried that inflation progress would stall and price increases might not reach the Fed's 2% target “in a timely manner.” Stated. Fed Director David Bowman also said the Fed continues to see a number of upside risks to inflation and said it's “not yet” time to cut rates. He added that the level of the federal funds rate, commensurate with low and stable inflation, “could very well be higher than it was before the pandemic,” and if that were the case, he would ultimately need to move monetary policy back. He added that reducing interest rates would be appropriate. Stance towards neutral level. ”
US nonfarm payrolls rose by +303,000 in March, beating expectations of +214,000 and marking the largest increase in 10 months. The unemployment rate in March fell as expected, ranging from -0.1% to 3.8%.
Average hourly wages in the U.S. slowed to +4.1% y/y in March from +4.3% y/y in February. This was as expected and was the slowest increase in 2-3/4 years.
US consumer credit increased by $14.125 billion in February, below expectations of $15.000 billion.
The market is discounting the possibility of a -25 basis point rate cut of 6% at the next FOMC meeting on April 30th-May 1st, and 53% at the next meeting on June 11th-12th.
Overseas stock markets fell and calmed down on Friday. The Euro Stoxx 50 fell to a two-week low, closing -1.10% lower. China's Shanghai Composite Stock Price Index was closed for Tomb Sweeping Day. Japan's Nikkei stock index fell to a three-week low, closing at -1.96%.
Interest level
June 10-year T-note (ZNM24) Friday closed at -15 ticks. The 10-year T-note yield rose +8.1 basis points to 4.390%. June T-note prices fell on Friday after a stronger-than-expected rise in U.S. nonfarm payrolls in March, reinforcing expectations that the Fed is in no hurry to cut interest rates. Rising inflation expectations also pushed T-note prices lower as the 10-year breakeven inflation rate rose to 2.399% on Friday, its highest level in 4-1/2 months. The T-Note continued to fall following hawkish comments from Dallas Fed President Logan and Bowman that it was “too early” to consider rate cuts.
Friday's T-note showed some support as wage pressure eased in the US, with average hourly wages slowing to +4.1% year-on-year in March, the slowest pace of increase in two to three quarters. Collected.
European government bond yields rose on Friday. The 10-year yield on German federal bonds rose 3.8 basis points to 2.399%. The UK 10-year bond yield rose 4.8 basis points to 4.069%.
Eurozone retail sales in February fell -0.5% month-on-month, lower than expectations of -0.4% month-on-month.
Germany's factory orders in February increased by 0.2% month-on-month, lower than the expected +0.7% month-on-month increase.
Germany's February import price index was -0.2% from the previous month and -4.9% from the previous year, which was unchanged from the previous month and below the -4.6% from the previous year.
US securities company
Newmont (Nemu) closed more than +5% higher after gold prices recovered to record highs and silver prices rose to two-year highs.
Western Digital (WDC) The stock closed more than +3% after Rosenblatt Securities upgraded the stock from Neutral to Buy with a price target of $115.
Arch Capital Group Ltd (ACGL) closed more than +3% after the company's insurance arm announced it would acquire Allianz Global's U.S. Midcorp and Entertainment Insurance businesses for $450 million.
Uber Technologies (Uber) Shares closed up more than 3% after Jefferies raised its price target from $95 to $100.
Eaton Corp Plc (ETN) closed over +3% after RBC Capital Markets upped the stock to outperform sector performance with a price target of $371.
Chip stocks rose on Friday, supporting gains in the technology sector. Nvidia (NVDA), Advanced Micro Devices (AMD), ASML Holding NV (ASML), Applied Materials (Amat) It closed at more than +2%. Also, Broadcom (AVGO), Marvell Technology (MRVL), KLA Corp (KLAC), Lam Research (LRCX), and microchip technology (MCHP) closed by more than +1%.
Crispy cream (donut) The stock closed more than 7% higher after Piper Sandler upgraded the stock from Neutral to Overweight and set a $20 price target.
Vertive Holdings (VRT) Oppenheimer closed up more than +5% after initiating coverage on the stock with an outperform recommendation and a $96 price target.
Shockwave Medical (SWAV) Johnson & Johnson closed more than +1% after agreeing to buy the company for $13.1 billion at $335 a share.
Tesla (TSLA) led the Nasdaq 100's decline by more than -3% after Reuters reported that the company had scrapped plans to build low-cost, entry-level Tesla cars.
Paramount Global (para) after CNBC reported that Skydance Media will retain a substantial minority or majority stake in the company by keeping its shares publicly traded and consolidating assets to raise new equity. The stock closed down more than 3%.
Lamb Weston Holdings (LW) Shares closed down more than 2% after Citigroup lowered its price target from $132 to $106.
Intel (INTC) closed down more than -2%, leading the decline in the Dow Jones Industrial Average and Nasdaq 100, due to a negative carryover from Wednesday's bleak outlook for factory operations.
Defensive packaged food makers fell on Friday as the broader market rallied. As a result, Campbell soup (CPB), Hormel Foods (HRL), JM Smucker (S.J.M.), Hershey (HSY), and McCormick & Company (MKC) ended trading down more than 1%.
CCC Intelligent Solutions (CCCS) closed more than -1% lower after announcing plans to sell 20 million shares of its common stock.
Earnings Report (April 8, 2024)
Eagle Pharmaceuticals Inc/DE (EGRX) and Waldencast plc (WALD).
more stock market news from bar chart
On the date of publication, rich asplund I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Summarize this content to 100 words
S&P 500 Index ($SPX) (spy) Friday's close was +1.11%, with the Dow Jones Industrial Average ($DOWI) (diamond) ended +0.80% higher than the Nasdaq 100 Index ($IUXX) (QQQ) ended at +1.28%. Stock indexes recorded a modest increase on Friday. Stocks rose on Friday on optimism that a strong U.S. economy will continue to boost consumer spending and corporate profits. Stocks rose even as Friday's better-than-expected U.S. jobs report raised the possibility of a prolonged rise in interest rates. Easing wage pressures also supported stocks after Friday's payroll report showed average hourly wages slowed to +4.1% year-on-year in March, the slowest pace of growth in two to three quarters. did.
A rise in T-note yields on Friday after U.S. payrolls were much higher than expected was a negative factor for stocks. Nonfarm payrolls increased by 303,000 in March, well above expectations, the largest increase in 10 months, and there is growing speculation that the Federal Reserve will be in no hurry to cut interest rates. The Fed's hawkish comments on Friday sent T-note yields higher and suggested the Fed will not cut rates anytime soon. Dallas Fed President Logan said it was “premature” to consider cutting interest rates, worried that inflation progress would stall and price increases might not reach the Fed's 2% target “in a timely manner.” Stated. Fed Director David Bowman also said the Fed continues to see a number of upside risks to inflation and said it's “not yet” time to cut rates. He added that the level of the federal funds rate, commensurate with low and stable inflation, “could very well be higher than it was before the pandemic,” and if that were the case, he would ultimately need to move monetary policy back. He added that reducing interest rates would be appropriate. Stance towards neutral level. ”US nonfarm payrolls rose by +303,000 in March, beating expectations of +214,000 and marking the largest increase in 10 months. The unemployment rate in March fell as expected, ranging from -0.1% to 3.8%.Average hourly wages in the U.S. slowed to +4.1% y/y in March from +4.3% y/y in February. This was as expected and was the slowest increase in 2-3/4 years.US consumer credit increased by $14.125 billion in February, below expectations of $15.000 billion.
The market is discounting the possibility of a -25 basis point rate cut of 6% at the next FOMC meeting on April 30th-May 1st, and 53% at the next meeting on June 11th-12th.Overseas stock markets fell and calmed down on Friday. The Euro Stoxx 50 fell to a two-week low, closing -1.10% lower. China's Shanghai Composite Stock Price Index was closed for Tomb Sweeping Day. Japan's Nikkei stock index fell to a three-week low, closing at -1.96%.Interest levelJune 10-year T-note (ZNM24) Friday closed at -15 ticks. The 10-year T-note yield rose +8.1 basis points to 4.390%. June T-note prices fell on Friday after a stronger-than-expected rise in U.S. nonfarm payrolls in March, reinforcing expectations that the Fed is in no hurry to cut interest rates. Rising inflation expectations also pushed T-note prices lower as the 10-year breakeven inflation rate rose to 2.399% on Friday, its highest level in 4-1/2 months. The T-Note continued to fall following hawkish comments from Dallas Fed President Logan and Bowman that it was “too early” to consider rate cuts.Friday's T-note showed some support as wage pressure eased in the US, with average hourly wages slowing to +4.1% year-on-year in March, the slowest pace of increase in two to three quarters. Collected.European government bond yields rose on Friday. The 10-year yield on German federal bonds rose 3.8 basis points to 2.399%. The UK 10-year bond yield rose 4.8 basis points to 4.069%.
Eurozone retail sales in February fell -0.5% month-on-month, lower than expectations of -0.4% month-on-month.Germany's factory orders in February increased by 0.2% month-on-month, lower than the expected +0.7% month-on-month increase.Germany's February import price index was -0.2% from the previous month and -4.9% from the previous year, which was unchanged from the previous month and below the -4.6% from the previous year.US securities companyNewmont (Nemu) closed more than +5% higher after gold prices recovered to record highs and silver prices rose to two-year highs.Western Digital (WDC) The stock closed more than +3% after Rosenblatt Securities upgraded the stock from Neutral to Buy with a price target of $115.
Arch Capital Group Ltd (ACGL) closed more than +3% after the company's insurance arm announced it would acquire Allianz Global's U.S. Midcorp and Entertainment Insurance businesses for $450 million.Uber Technologies (Uber) Shares closed up more than 3% after Jefferies raised its price target from $95 to $100.Eaton Corp Plc (ETN) closed over +3% after RBC Capital Markets upped the stock to outperform sector performance with a price target of $371.Chip stocks rose on Friday, supporting gains in the technology sector. Nvidia (NVDA), Advanced Micro Devices (AMD), ASML Holding NV (ASML), Applied Materials (Amat) It closed at more than +2%. Also, Broadcom (AVGO), Marvell Technology (MRVL), KLA Corp (KLAC), Lam Research (LRCX), and microchip technology (MCHP) closed by more than +1%. Crispy cream (donut) The stock closed more than 7% higher after Piper Sandler upgraded the stock from Neutral to Overweight and set a $20 price target.
Vertive Holdings (VRT) Oppenheimer closed up more than +5% after initiating coverage on the stock with an outperform recommendation and a $96 price target.Shockwave Medical (SWAV) Johnson & Johnson closed more than +1% after agreeing to buy the company for $13.1 billion at $335 a share. Tesla (TSLA) led the Nasdaq 100's decline by more than -3% after Reuters reported that the company had scrapped plans to build low-cost, entry-level Tesla cars. Paramount Global (para) after CNBC reported that Skydance Media will retain a substantial minority or majority stake in the company by keeping its shares publicly traded and consolidating assets to raise new equity. The stock closed down more than 3%.Lamb Weston Holdings (LW) Shares closed down more than 2% after Citigroup lowered its price target from $132 to $106.
Intel (INTC) closed down more than -2%, leading the decline in the Dow Jones Industrial Average and Nasdaq 100, due to a negative carryover from Wednesday's bleak outlook for factory operations. Defensive packaged food makers fell on Friday as the broader market rallied. As a result, Campbell soup (CPB), Hormel Foods (HRL), JM Smucker (S.J.M.), Hershey (HSY), and McCormick & Company (MKC) ended trading down more than 1%. CCC Intelligent Solutions (CCCS) closed more than -1% lower after announcing plans to sell 20 million shares of its common stock.Earnings Report (April 8, 2024)Eagle Pharmaceuticals Inc/DE (EGRX) and Waldencast plc (WALD).more stock market news from bar chart
On the date of publication, rich asplund I had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. Please see the Barchart Disclosure Policy for more information. here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
https://www.nasdaq.com/articles/stocks-settle-higher-as-a-strong-us-labor-market-powers-the-economy Stock prices remain on the rise as the robust US labor market drives the economy
