Stocks Closed Higher On Friday After A Better Than Expected Jobs Report

Plus 5 Just-Added Strong Buys Stocks Closed Higher On Friday After A Better Than Expected Jobs Report [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Closed Higher On Friday After A Better Than Expected Jobs Report [Stocks Closed Higher On Friday After A Better Than Expected Jobs Report]Image: Bigstock Stocks closed sharply higher on Friday after a better than expected jobs report. On Friday, the Employment Situation report showed there were 253,000 new jobs created in April (230K in the private sector and 23K in the public) vs. the consensus for 178,000 (153K in the private sector and 25K in the public), while the unemployment rate declined from 3.5% to 3.4%, beating expectations for an increase to 3.6%. We saw some negative revisions from prior months with February revised lower by -78,000 jobs (326K to 248K), and March revised down by -71,000 jobs (236K to 165K). Combined, that shaved off -149,000 jobs we thought were created in prior months. But traders appeared to like that as well. Why? Because it shows that the economy and the labor market are still growing, but not as fast as had been thought. And that is more evidence that the Fed rate hikes have been working to slow down the economy (and thereby inflation), without crashing it. As for April, the industries seeing the biggest job growth were: Professional and Business Services with 43,000 new jobs, Health Care with 40,000 new jobs, Leisure and Hospitality increased by 31,000 jobs, Social Assistance jobs grew by 25,000, Government Employment was up 23,000, and Mining, Quarrying, and Oil and Gas Extraction gained 6,000 new jobs. All in all, it was a fine report that the market interpreted bullishly. We also saw the regional banks soar on Friday after getting pummeled the day before. PacWest, which was down by more than -50% on Thursday, jumped by 81% on Friday; Western Alliance, which was down -38% on Thursday, was up 49% on Friday; Zions Bancorp, down -12% on Thursday, was up 19% on Friday; and Comerica, down -12% on Thursday, rose 16% on Friday. We also got a lift from Apple. Thursday afternoon's better than expected earnings led to a 4.69% gain on Friday. This week will be the busiest earnings week with 1,971 companies set to report. Year to date, the major indexes are up, but have put in an uneven performance with the Dow up 1.59%, the S&P up 7.73%, and the Nasdaq up 16.9%. From last year's lowest close, however, they are all up double-digits and pacing about the same with the Dow up 17.2%, the S&P up 15.6%, and the Nasdaq up 19.8%. The Dow actually exited their bear market back on 11/30/22 when they closed up by 20% (20.4%) from their lowest bear market close. Granted, they are trading under that threshold at the moment (albeit not by much, i.e., 2.8%), but it doesn't change the fact that, technically, the Dow is no longer in a bear market, but a new bull market. The S&P has just under 4.5% more to go to exit their bear market, while the Nasdaq needs only 0.20% to officially get out of their bear market and enter a new bull market. Of course, that doesn't mean stocks will go straight up once they do. Just look at the Dow, which pulled back by roughly -8% after crossing that line, before getting back within striking distance as they are now. But all bull markets start by first getting past that mark. So those milestones will be watched closely. In the meantime, stocks are in the plus column, inflation is on the decline, interest rates look like they are on pause, and the economy, while slowing, continues to grow. All bullish signs. And that's good news for the market. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [Why Haven't You Looked at Zacks' Top Stocks?]( Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation. [See Stocks Free »]( Most Popular Articles from Zacks.com [Anatomy of a Trade: 3 Key Considerations for Buying a Stock]( Here are three critical variables to consider when making an investment. [Read More »]( [Why Are Tech Stocks Doing So Well This Year?]( With tech up more than 18% this year, we take a closer look at what is driving the sector. [Read More »]( [5 Attractive Large-Cap Stocks to Buy Despite Recession Fears]( We have narrowed our search to five large-cap stocks currently trading at a deep discount to their 52-week highs. 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