Stocks Closed Higher On Friday And For The Week, More Earnings On Tap This Week

Market Moves You Need to See Stocks Closed Higher On Friday And For The Week, More Earnings On Tap This Week [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Closed Higher On Friday And For The Week, More Earnings On Tap This Week Stocks closed higher on Friday and for the week. That makes it 3 up weeks in a row for the Dow, and 2 up weeks in a row for the S&P 500, the Nasdaq, the small-cap Russell 2000, and the mid-cap S&P 400. Last week's FOMC announcement gave the market what it was looking for: the Fed acknowledged the progress that's been made in bringing down inflation over the last two years, but also noted that progress has recently stalled. Nonetheless, they are still expecting to cut rates later this year. In the meantime, they announced they would be slowing down the shrinking of their balance sheet (reducing the amount of Treasuries they let mature without being reinvested), starting in June. Stocks on Thursday soared on the news. The rally continued on Friday after the lighter than expected Employment Situation Report. The consensus was calling for 243,000 new jobs being created last month (190,000 in the private sector, and 53,000 in the public). Instead, we got 175,000 (167,000 private and 8,000 public). The unemployment rate rose to 3.9% vs. last month's 3.8% and views for the same. The participation rate was steady at 62.7%. And average hourly earnings rose 0.2% m/m vs. the consensus for 0.3%, while the y/y rate came in at 3.9% vs. last month’s 4.1% pace and estimates for 4.0%. Additionally, February's jobs tally was revised down by -34,000 to 236K from 270K, while March was revised up by 12,000 to 315K from 303K. Combined, the revisions were -22,000 lower than previously reported. The market cheered the softer numbers because it shows the labor market, and thus the economy, is doing just fine, but not overheating, which could reignite inflation. At this stage of the game, a slower growth rate should help weaken inflation. That in turn benefits the economy, and if this continues, can give the Fed the confidence to begin cutting rates. I hesitate to say we have entered the period where bad news is good, because it's hard to make the case that 175,000 jobs is bad. But these numbers are soft-landing type numbers, and bodes well for the market. For those interested, the biggest job gains came from Healthcare with 56,000 new jobs; Social Assistance jobs increased by 31,000; Transportation and Warehousing were up 22,000; Retail Trade was up 20,000; Construction picked up 9,000; and Government Employment added 8,000 jobs. In other news, the PMI Composite report saw the Composite Index come in at 51.3, down from last month's 52.1, but up from views for 50.9, while the Services Index also came in at 51.3, down from last month's 51.7, but up from the consensus for 50.9. And the ISM Services Index slipped to 49.4 vs. last month's 51.4 and estimates for 52.0. We've got another busy week of earnings this week with over 1,900 companies on deck to report including Palantir and Vertex Pharmaceuticals on Monday, Disney and Datadog on Tuesday, and Uber, Airbnb, and Arm Holdings on Wednesday, amongst many others. After another week's worth of gains, it appears the worst of the pullback is behind us as the big three indexes are within striking distance of their all-time highs. The Dow is just -2.78% below their all-time high, the S&P 500 is just -2.41% below theirs, and the Nasdaq Composite is only -1.74% away. We'll see if the markets can build upon their recent gains and add another week to their winning streak. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Why Haven't You Looked at Zacks' Top Stocks?]( Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year. Today you can access their live picks without cost or obligation. [See Stocks Free »]( Today's Top Research [Mag 7 Leadership Reflects Earnings Power]( Had it not been for the substantial earnings contribution from the Mag 7, Q1 earnings growth for the rest of the S&P 500 index would be in negative territory. [Read More »]( [4 Factors Point to a Sunny Future in Solar]( After years of frustrating action, the solar industry is poised to move higher. [Read More »]( [These 3 Companies Shattered Quarterly Records]( We've seen many positive quarterly prints so far into the Q1 earnings cycle, including record-breaking numbers from these three companies. [Read More »]( [The Underrated Global Consumer: Zacks MAY Strategy]( The strength of the global consumer, including the now-traveling Mainland Chinese population, remains an underrated force for global growth. [Read More »]( [The Best Dirt-Cheap Stocks to Buy Now]( These five stocks are Zacks Strong Buys and have the top Zacks Style Scores for value. [Read More »]( [Start Every Day Ahead of Wall Street]( Before you make a trade, get today's market news from Zacks' latest Ahead of Wall Street article. With timely information from Zacks analysts, each daily article features a preview of where the market is headed. Plus, Zacks #1s on the move, stock research reports, earnings and economic news, and a top-headline analyst blog. All of it in one easy-to-follow place to give you the edge. [Get the latest news »]( [Bull of the Day: Netflix (NFLX)]( Netflix recently enjoyed a solid quarter, posting $2.1 billion in free cash flow and seeing meaningful margin expansion. [Read More »]( [New Zacks Strong Buys for May 6th]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( More Zacks Resources Mobile App Download our app for convenient on-the-go access to even more—daily and weekly newsletters published by Zacks experts, proprietary research and tools, and Portfolio Tracker on Zacks.com. [Download our Zacks App for Apple iOS]( [Download our Zacks App for Android]( Zacks Members' Success Stories Visit [Success Stories]( to hear how Zacks research, tools and portfolios help our members outperform the market. Get all of our market insights and much more when you connect with us. [Visit Zacks on Facebook]( [Follow Zacks on Twitter]( [See Zacks videos on YouTube]( [Join Zacks on LinkedIn]( [Read Zacks Commentary on StockTwits]( This free resource is being sent by [Zacks.com](. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms of Service". [www.zacks.com/terms_of_service]( Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through April 1, 2024. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank #1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit [( for information about the performance numbers displayed above. Zacks Emails If you would prefer to not receive future profit-producing emails from [Zacks.com]( the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please [click here]( and confirm your request. If you have trouble with the unsubscribe link, please email support@zacks.com. Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606