S&P 500 (SPX), Nasdaq (QQQ) Day Ahead: Can the Fed pump anymore after weak jobs report
Here is what you need to know on Friday, May 7:
Well, that was an interesting jobs report. Not too many people were forecasting that one. In case you missed it, nonfarm payrolls were forecast to come in around the 1 million jobs gained but instead the US only added 266K.
Markets swung around after the release, the 10-year yield dumped to 1.5%, Gold popped to $1,840, and the dollar slumped to $1.2140 versus the euro.
There are two ways of looking at this. First, rates are set low forever, there is certainly no chance of a taper, funds keep flowing to equities. The Nasdaq certainly is following this logic with futures and QQQ jumping 1% straight after the jobs report. The more pessimistic or realistic among you may be thinking: Wow, all that Fed stimulus is still not creating jobs! How bad would it be if the Fed steps away? Hmmm, sobering.
European markets are all higher, FTSE +0.1%, Eurostoxx +0.1%, and Dax +0.9%.
US futures are also higher with the Nasdaq +1.4%, S&P +0.4%, and the Dow +0.1%.
Wall Street top news
Nonfarm payrolls increase by a disappointing 266K versus an expected gain of 1 million.
UK and EU continue to haggle over the Northern Ireland BREXIT compromise. UK and France haggle over Jersey, and Scottish parliament vote revolves around independence this weekend.
ECB says a decision may be made in June to slow bond purchases. The Fed says please do not!
Pfizer (PFE) and BioNTech (BNTX) have started the application process with US FDA for full covid vaccine approval.
Tesla (TSLA) tells California regulators it may not have self-driving cars by end of 2021.
TWTR: suspends several accounts linked to share statements from former President Trump's website.
Kansas City Southern (KSU): US regulator approves voting trust for Canadian Pacific's proposed acquisition of KSU.
Peloton earnings not as bad as feared post treadmill recall. Shares jump 3% premarket.
AIG beat earnings estimates after the close on Thursday.
Expedia (EXPE): beats earnings estimates, shares up 6% premarket.
AMC earnings after the close were worse than expected, but the bullish conference call (is there any other type?) sees shares gain 3% premarket.
Roku: beats earnings estimates, shares jump 11% premarket.
BILL.com beats earnings, shares jump 11% premarket.
Datadog (DDOG): beats earnings estimates, shares jump 11% premarket.
Cloudflare (NET): beats earnings estimates, shares up 8%.
Shake Shack (SHAK): misses earnings estimates, shares down 7% premarket.
Cinemark (CNK): follows AMC lead and talks bullishly on cinema reopenings, stock up 1% premarket.
DraftKings (DKNG): reports a smaller than expected loss, shares up 4% premarket.
Dropbox (DBX): beats earnings estimates, shares up 3% premarket.
Ups and downs
ConocoPhilips (COP): Raymond James upgrades.
ViacomCBS (VIAC): Wells Fargo and RBC upgrades.
Funko (FKNO): DADavidson upgrades.
Tapestry (TPR): BTIG upgrades.
ETSY: Stifel upgrades.
Tupperware (TUP): Citi upgrades.
Manulife (MFC): RBC downgrades.
Tilray (TLRY): Jefferies upgrades.
ROKU: Loop Capital upgrades.
Economic releases
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
