Stocks Up Sharply, All Eyes On This Morning's Employment Report

Market Moves You Need to See Stocks Up Sharply, All Eyes On This Morning's Employment Report [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Up Sharply, All Eyes On This Morning's Employment Report [Stocks Up Sharply, All Eyes On This Morning's Employment Report]Image: Bigstock Stocks closed sharply higher yesterday with all of the indexes solidly in the green. What a week it's been so far. Thru yesterday the Dow is up 4.38%, the S&P is up 4.86%, and the Nasdaq is up 5.54%. And there's still one more day to go. The day started off with big earnings surprises from Starbucks (+9.28% positive EPS surprise), Shopify (+60.0% positive EPS surprise), and Eli Lilly (+225% positive EPS surprise), amongst others. And those beats were cheered heartily by the market with gains of 9.48%, 22.4%, and 4.66% respectively. After the close Apple reported earnings and posted a positive EPS surprise of 5.04%, and a positive sales surprise of 9.52%. That translated to a quarterly EPS increase of 13.2% vs. this time last year, but a sales decline of -0.72%. Revenue for iPhones and services soared with iPhone sales setting a record for a September quarter, and services hitting an all-time high. But Apple's revenue guidance for the December quarter is expected to come in flat vs. last year in contrast to expectations for a 5% increase. Apple was up 2.07% in the regular session before earnings. But was down roughly -3.5% in after-hours trade. Today we'll hear from another 145 companies including Berkshire Hathaway, Dominion Energy, and Cardinal Health to name a few. In other news, yesterday's Factory Orders report was up 2.8% m/m vs. last month's 1.0% and views for 1.6%. Weekly Jobless Claims were up 5,000 at 217K vs. the consensus for 213K. The 4-week moving average came in at 210K vs. last month's 208K. And the Challenger Job-Cut Report came in at 36,836 vs. last month's 47,457. But the jobs report everybody is really waiting for is this morning's Employment Situation report. The consensus is calling for 179,000 jobs to have been created in October (143K in the private sector and 36,000 in the public), while the unemployment rate stays the same at 3.8%, and average hourly earnings declines to 4.0% from 4.2%. A strong but moderating number should be cheered as it would underscore the resiliency of the economy, without appearing overly hot as to suggest another rate hike would be needed. A blowout number on the other hand would likely be looked at negatively and suggest more rate hikes might be needed. That report comes out at 8:30 AM ET. We'll also get the PMI Composite report, and the ISM Services Index. Stocks are on pace for a solid up week. And could very well be the beginning of the Q4 rally we’ve all been waiting for. Best, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [Deadline to See Top 5 Electric Vehicle Stocks]( Zacks Special Report reveals 5 must-buys in an electric vehicle industry predicted to account for more than 50% of global car sales by 2035. To say this is a disruptor to the automotive industry couldn't be more of an understatement. Included is one "Sleeper Stock" still under Wall Street's radar. The earlier you get in, the greater your potential gain. Report distribution is limited - no extensions. Deadline is Sunday, November 5. [See Stocks Now »]( Most Popular Articles from Zacks.com [Resuming the Bull Market: 3 Top Ranked Stocks Investors Can Buy Now]( Following yesterday's Fed meeting, the market looks ready to rally. [Read More »]( [Semis: 5 Factors Suggest the Correction is Over]( Semiconductor stocks stormed back in the first half of 2023 before pulling back over the past few months. Can they regain their mojo? 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