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Stocks rise slightly as employment data shows further strength

Max SmithBy No Comments9 Mins Read


Stocks edged higher on Friday, on track to avoid losses, as nervous investors digested the important monthly jobs report and kept an eye on rising oil prices.

The Dow Jones Industrial Average (^DJI) rose about 0.1% (20 points) and the S&P 500 (^GSPC) rose 0.3% following its biggest single-day decline since February. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, rose 0.4%.

As Yahoo Finance's Josh Schafer reported, the U.S. labor market remained strong in March. Employers added 303,000 jobs, far more than economists expected, and the unemployment rate fell to 3.8%. Wage growth also met expectations.

on Thursday as oil prices hit six-month highs, raising concerns about accelerating inflation and a slew of Federal Reserve speakers shaking confidence that interest rates will be cut soon. Major indicators fell.

Market tensions are rising following this week's turbulent stock market movements. Investors are juggling economic announcements with corporate news amid rising tensions in the Middle East.

Oil prices remained near multi-month highs on Friday, rising sharply amid rising tensions between Israel and Iran. International benchmark Brent crude oil futures (BZ=F) remained just below $91 a barrel, while West Texas Intermediate futures (CL=F) traded at $86.60.

live10 updates

  • Tesla ends low-cost car plan

    Plans for a more affordable Tesla (TSLA) model that investors have been counting on to widen the all-electric car maker's appeal are on track, Reuters reported on Friday, citing people familiar with the matter and a company message. It was reported that it had been withdrawn.

    Tesla shares fell more than 3% on the news.

    The company will continue to develop self-driving robotaxis using the same vehicle platform, according to the report. But the failed initiation marks a major setback for the automaker, which has long promised affordable electric vehicles for mainstream customers.

    Tesla's Model 3 sedan is its cheapest vehicle, retailing for just under $40,000. The previously planned entry-level vehicle was expected to cost around $25,000.

    As foreign automakers compete to supply low-cost EVs, fierce competition from China will make supplying such vehicles even more difficult.

  • One thing I'm curious about when it comes to retail stocks this spring and summer

    Every retail executive I talk to over the next month will be asked the same question.

    If oil prices return to near $100 per barrel, what impact will this have on margins and the outlook? From shipping charges to gasoline price shocks on the consumer side, this progress is factored into the outlook. I don't think so.

    I now have the first answer on this point from Levi's (LEVI) CFO Harmit Singh on the New York Stock Exchange.

    Here's what he said on Yahoo Finance Live:

    “Where our costs are really affected by the commodity is mainly cotton. In terms of transportation rates, we have long-term contracts, so we are not feeling any pressure at the moment regarding the oil situation. “If prices go up, we'll survive because we have opportunities in other areas. But for now, we're not worried about that.”

  • Magnitude 4.7 earthquake hits East Coast

    A preliminary magnitude 4.7 earthquake struck the east coast of the United States on Friday morning.

    The earthquake was reported around 10:23 a.m. ET about 5 miles east of Lebanon, New Jersey, according to the U.S. Geological Survey (USGS).

    New York Governor Cathy Hochul said: “My team is assessing the impact and possible damage that may have occurred and will provide updates to the public throughout the day.” Said in X's postconfirmed that the shaking was felt across the state, including Manhattan.

    Rumors were also reported in areas from Philadelphia to Boston.

    In response to the earthquake, the US Federal Aviation Administration (FAA) issued ground stops at New York City's John F. Kennedy International Airport and Newark Liberty International Airport.

    The FAA warned that the quake could also affect other air traffic facilities throughout New York, New Jersey, Philadelphia and Baltimore.

  • Stock prices rise in morning trading

    Below are some of the stocks that topped Yahoo Finance's trend ticker page during Friday morning trading.

    Johnson & Johnson (JNJ): Shares of the healthcare giant fell 0.3% on Friday morning after announcing it would acquire Shockwave Medical (SWAV) for $12.5 billion to expand its portfolio of medical devices used to treat heart disease. did. Shockwave rose nearly 2% on the news.

    Crispy cream (DNUT): The donut and coffee house chain benefited from Piper Sandler's upgrade, sending its stock up nearly 5%. The upgrade comes after the announcement of a national partnership with McDonald's (MCD). Piper Sandler analysts called the partnership a “game changer” and raised their price target for Krispy Kreme from $14 to $20.

    Solana (Sol – US dollar): With just over two weeks left until Bitcoin and other digital currencies reach their “halving'' event, in which Bitcoin's mining rewards will be cut in half, Bitcoin and other digital currencies have been hit by price fluctuations. fell 7% on Friday. Halvings reduce the rate of new coin creation, which reduces the amount of new coins available.

    HubSpot (hub): The online marketing software company's stock rose 3% after Reuters reported that Google's parent company Alphabet was in talks with advisers about a possible acquisition. The potential deal would be Alphabet's largest acquisition and would give HubSpot a market value of about $35 billion.

  • Stock prices rose slightly following strong March employment statistics

    Stocks rose at the open on Friday as investors digested an impressive March jobs report that showed more than 300,000 jobs added while monitoring higher oil prices.

    The Dow Jones Industrial Average (^DJI) rose about 0.1% (20 points) and the S&P 500 (^GSPC) rose 0.3% following its biggest single-day decline since February. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, rose 0.4%.

  • This is Wall Street's new top price target for Netflix

    The bull market for Netflix (NFLX) is just beginning, argues Pivotal Research analyst Jeffrey Rodarchuk.

    This morning, Wrodarczak raised his price target on Netflix stock by $65 to a street high of $765, predicting an upside of about 24% from current levels. The stock is up 27% since the beginning of the year.

    At the core of the revised price target are higher assumptions regarding subscriber growth and average revenue per user. Wrodarczak believes there is “certain momentum” in each metric given the unparalleled content Netflix offers. Wrodarczak's comment:

    “At the end of the day, our positive investment view remains. Netflix is ​​winning the streaming wars, and continued strong average revenue per subscriber/user and free cash flow generation should support the stock. Netflix What keeps the flywheel moving is that the bigger the company, the more influence it has over its fellow content creators, the better its product (and the more subscribers it gets). /drive higher average revenue per user) and create a larger moat around the core business. model. “

  • PepsiCo attracts attention as a safe haven

    One stock that hasn't been in trouble over the past month is PepsiCo (PEP).

    The stock has risen 2.6% over the past four weeks, outpacing the S&P 500's 0.3% rise. Coca-Cola (KO) fell 0.9%.

    Jefferies analyst Kaumil Gajrawala seems even more invested in the stock's performance today, adding PepsiCo to his list of “franchise picks” (excluding Colgate).

    Gajrawala sees several factors driving the share price. 1) International business has the potential for unexpected upside given its size and accounts for approximately 40% of PepsiCo's total business. 2) A long runway for the snacking category. 3) Potential for above-average profit margins due to beverage and snack operations and cost reductions.

    “There are so many things I like,” Gajrawala says.

    I spoke to PepsiCo Chairman and CEO Ramon Laguarta at the World Economic Forum in late January. The video below gives a good idea of ​​what his team is trying to do this year.

  • Jefferies' big request to Uber

    Jeffries believes Uber stock will continue to rise.

    Uber's price target was raised this morning by analyst John Colantuoni from $95 to $100, projecting an upside of about 33% from current levels.

    This call seems logical to me as it focuses on Uber's ability to acquire new customers by offering new mobility product tiers. Colantuoni's comment:

    “Uber has dramatically expanded its mobility offering in recent years, growing its portfolio from just two products (UberX/Black) in 2011 to up to 20 products today.Addressing more use cases This allows Uber to acquire new users, drive increased frequency through the introduction of multiple products, and expand its overall addressable market by providing more driving alternatives. Expand.”

    The statistics that support Colantuoni's call are that bookings for new mobility products reached $8.5 billion in 2023, up from $2.3 billion in 2021.

  • Goldman Sachs says to keep an eye on this area of ​​employment statistics

    Impact of immigration.

    Goldman Sachs has done some good research recently on the economic impact of immigration on the US economy, and its team is continuing that analysis ahead of today's March jobs report.

    Chief economist Jan Hadzius estimates that nonfarm payrolls rose by 240,000 in March, above the consensus of 213,000, due in part to the increased supply of migrant workers.

    Here are Hadzius' thoughts on the issue:

    “Last year, the labor supply increased by about 80,000 people per month due to an increase in immigration compared to previous years, and we expect the tailwind to continue this year by an average of 50,000 people per month.Especially in March, the labor supply will increase by about 80,000 people per month. Further significant increases are expected due to the influx of job seekers.'' People who did not find work as of February (241,000 new unemployed people since November).

    “Given the still high level of recruitment and the active spring hiring season, we estimate that many of these labor force entrants found jobs during the March survey period. Tomorrow's report is expected to increase employment compared to normal. ”

    The influx of immigrants affects the US labor market.The influx of immigrants affects the US labor market.

    The influx of immigrants affects the US labor market. (Goldman Sachs)

  • And we're watching Nvidia

    Focus on market leader Nvidia (NVDA).

    The stock price fell below the 20-day moving average as the overall market declined. Naturally, it's always cause for concern when an investor-favorite company like Nvidia lags. Many on the street will say things like, “As Nvidia goes, so goes the market.”

    They wouldn't be wrong.

    Great chart in this thread by Julian Emanuel of Evercore ISI. He highlighted how Nvidia's stock underperformed last summer, weighing on the overall market. He suggests this pattern could start again.

    So is Nvidia and the market.So is Nvidia and the market.

    So is Nvidia and the market. (Evercore ISI)





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