Poor Jobless Claims Send Stocks Soaring Once Again, All Eyes On Today's Employment Report

Plus 5 New Strong Buys for Today [Kevin Matras] Profit from the Pros By Kevin Matras Executive Vice President [Zacks Investment Research] Poor Jobless Claims Send Stocks Soaring Once Again, All Eyes On Today's Employment Report Image: Bigstock Stocks closed higher yesterday after another poor Weekly Jobless Claims report. It was like "deja vu all over again." Last week's Jobless Claims report showed a shockingly large 3.28 million people filing for unemployment, and stocks soared on the news. This week's Jobless Claims report showed an even bigger number with 6.64 million people filling for unemployment, and stocks soared once again. How is this possible? Because the market is forward looking and those terrible numbers were largely already priced in. Plus, we all know why this is happening. This is not a surprise. And it's a temporary event. That doesn't mean stocks can't go back down again. Volatility is here to stay for a while. But stocks were grossly oversold, and were primed for a rebound. We'll get another look at the jobs market this morning with the Employment Situation report. The consensus is calling for a loss of -150,000 jobs. But nobody really knows how to even guesstimate these numbers. We've seen that with the Jobless Claims and we're seeing that with this report as well. For example, the consensus range is crazy large with estimates as low as -1.27 million on one end and +50,000 on the other. We'll see what the number comes in at and how the market reacts. Nobody knows for certain what the market will do on any given day. But it's important to know that these numbers are backward looking. And many traders are turning their attention to the future. And the buzz that we could see the outbreak peak over the next two weeks, with hopes that the social distancing measures are flattening the curve, have many optimistic that we can get on the other side of this having dodged the worst case scenario. And if that comes to pass, we could begin to open up our economy sooner rather than later. The worst is not yet behind us. But when it is, stocks are expected to soar as things begin to get back to normal, and pent-up economic demand is unleashed. In the meantime, support for all three indexes come in at their gap left on their charts from March 23rd. For the Dow that's 19,121.01; for the S&P that's 2,300.73. And for the Nasdaq that's 6,984.94. On the upside, however, the Dow has already exited its bear market when it closed up by 20% from its lowest close. And technically, they have already begun a new bull market. For the S&P, we need to see a close at or above 2,877.72 for their bear market to end and a new bull to begin. For the Nasdaq, it's 8,285.51. Set yourself an alert. When we close above those levels, it will definitely be cause to celebrate. Best, Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Alert: Buy These 4 Stocks Now]( There's still time to get in early on our just-released Ultimate Four. These aren't just 4 promising stocks. They were handpicked from hundreds of strong companies by Zacks' experts because they present the greatest upside for Q2 -- through today's stay-at-home economy and the coming rebound. 1. Recent IPO online retailer that's virtually immune to the coronavirus and primed for tremendous growth. 2. Tech giant with big work-at-home market, high earnings, and a share price that looks way too low. 3. Cybersecurity firm riding a trend that's doubling from $3 trillion in 2015 to an expected $6 trillion by 2021. 4. Semiconductor innovator with great leadership and now in the right place at the right time. Deadline to download this Ultimate Four Special Report is midnight Sunday, April 5. [See Stocks Now >>]( Most Popular Articles from Zacks.com Image: Bigstock [Bullish Market Signals]( The markets aren't concerned about short-term unemployment because workers are being taken care of with the new stimulus plan. [Read More »]( Image: Bigstock [5 Cloud Stocks Likely to Rally as Coronavirus Drives Remote Working]( The cloud is helping organizations remotely process information, build and run crucial applications and services and helping employees work together from anywhere. [Read More »]( Image: Bigstock [4 Consumer Discretionary Stocks Rallying Despite Coronavirus Woes]( When this sector's stock prices rally despite severe market mayhem, it indicates an established business model, strong future prospects and solid financial strength. [Read More »]( Image: Bigstock [U.S. Oil Stocks Rise Sharply, Coronavirus Chokes Gasoline Demand]( The fast-spreading novel coronavirus outbreak has triggered an unprecedented selloff in the commodity. [Read More »]( Image: Bigstock [Can Buffett-Style Investing Succeed Today? Stocks & ETFs to Consider]( Companies with a strong competitive advantage are expected to succeed in this challenging environment. [Read More »]( Sponsor [Increase Investment Returns with Free Zacks' Portfolio Tracker]( Follow your investments easily in one place. Get free email updates that alert you to major events affecting your stocks and funds, including timely recommendation changes, earnings announcements and, most importantly, earnings estimate revisions. [Click to Learn More>>]( Image: Bigstock [Bull of the Day: Regeneron Pharmaceuticals, Inc. (REGN)]( Regeneron's shares have surged 30% in 2020 as investors clamor for stocks that appear immune to the coronavirus economic downturn. [Read More »]( [New Zacks Strong Buys for April 3rd]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( 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]( 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 and Conditions of Service" disclaimer. [www.zacks.com/disclaimer](. 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 March 2, 2020. 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