Stocks End Lower After Strong Jobs Report, More Earnings On Deck For This Week

Market Moves You Need to See Stocks End Lower After Strong Jobs Report, More Earnings On Deck For This Week [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks End Lower After Strong Jobs Report, More Earnings On Deck For This Week [Stocks End Lower After Strong Jobs Report, More Earnings On Deck For This Week]Image: Bigstock Stocks closed lower on Friday with the big three indexes also closing lower for the week. But the small-cap Russell 2000, and mid-cap S&P 400 both closed higher for the week with gains of 0.30% and 1.42% respectively. It was the 2nd up week in a row for the Russell 2000, and the 9th (yes, the ninth), up week in a row for the S&P 400. Friday's Employment Situation Report came in better than expected with 275,000 new jobs being created last month (223K in the private sector and 52K in the public), vs. the consensus for 190,000 (150K private and 40K public). The unemployment rate ticked up to 3.9% vs. the previously reported 3.7% and views for the same. Average hourly earnings rose less than expected at 0.1% m/m vs. estimates for 0.3% and the previous month's 0.5% pace. On a y/y basis it came in at 4.3%, in line with expectations, and under the previously reported 4.4%. Revisions to previous months, however, were lower with December being revised down by -43,000 to 290,000 (from 333,000), and January revised down by -124,000 to 229,000 (from 353,000). Stocks rallied right out of the gate on the news with the S&P 500 and Nasdaq making new all-time intraday highs. But by early afternoon all the indexes had reversed and fell into the red. The amazing resiliency of the jobs market is one of the data points that gives pause to the Fed in regard to cutting rates too soon. A hot jobs market, to some, suggests that interest rate cuts may not have slowed the economy down sufficiently to bring inflation down to 2%. Of course, just because the labor market is hot, doesn't mean inflation can't keep falling. Because so far, that's exactly been the case – interest rates have gone up, inflation has fallen quite a bit, while unemployment remains near record lows. The so-called soft landing appears to be unfolding right before everyone's eyes. But it also affords the Fed time from having to move too hastily, for fear of undoing what's already been done. But the Fed still seems intent on cutting rates later in the year. Fed Chair, Jerome Powell said as much last week to both the House and Senate in his semiannual testimony to Congress. All in all, it was another strong jobs report. The industries with the biggest jobs gains were: Health Care with 67,000 new jobs; Food Services and Drinking Places with 42,000 new jobs; Social Assistance jobs grew by 24,000; Transportation and Warehousing rose by 20,000 jobs; Construction was up 23,000; and Retail Trade added 19,000 new jobs. We'll get our usual slate of economic reports this week. And then next week is the FOMC meeting on March 19-20. Nobody is expecting the Fed to cut rates next week. But they are expected to begin talking about when cuts might begin and how big. In the meantime, we'll get plenty more earnings with another 756 companies on deck to report this week, including 155 today alone, with Oracle, Casey's General Stores, Legend Biotech, and Vail Resorts in queue today. YTD, stocks are up solidly with the Dow up 2.74%, the S&P 500 up 7.42%, the Nasdaq Composite up 7.15%, the small-cap Russell 2000 up 2.74%, and the mid-cap S&P 400 up 6.14%. Whether we see a bit of a pause here or not, it looks like there's a lot more upside to go this year. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [Turn Time Into Income Without The Hustle]( How To Improve Your Trading by Investing The easy way to turbocharge your passive investing plans using what Einstein coined as "the eighth wonder of the world" [Get Your Passive Income Accelerator]( Today's Top Research [5 Biotechnology Stocks to Buy for a Stable Portfolio in 2024]( We have narrowed our search to five biotech stocks with strong potential this year that have a Zacks Rank #2 (Buy). [Read More »]( [Time for a Big Small-Cap Run? Zacks March 2024 Strategy]( Zacks Chief Equity Strategist and Economist John Blank breaks down why investors should watch for an unpredictable, but possibly explosive, return on Russell 2000 (RUT) stocks. 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