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Wake Up Wall Street (SPY) (QQQ): Jobs report eases fears of stagflation, yields drop so equities pop

Ivan Brian FXStreet

Here is what you need to know on Friday, November 5:

Boom! Just like that the economy is back on track as a strong jobs report puts fears of stagflation to bed, and bulls are likely to roam the higher record-breaking plains again. Is there anything that can stop this market juggernaut? Well, China may have a trick or two up its sleeve as another property developer is in trouble. Kaisa this time joins Evergrande in the dodgy debt debacle. Investors are not giving any heed, but keep an eye on this one. We feel this one may return on a grande scale.

Tech stocks continued to set the pace on Thursday as the Nasdaq outperformed the other indices. The Russel 2000 (IWM) was again the laggard as it finished in the red.

The dollar remains strong with the joint headwinds of potentially higher rates and now higher growth, with that jobs report seeing it push to 1.1525 versus the euro. Oil is below $80 for the first time in a while at $79.69, Bitcoin still steady at around $61,500, and Gold is at $1,790.

See forex today

European marklets are all higher: EutoStox +0.9%, FTSE +0.5% and Dax +0.3%.

US futures are higher: S&P and Dow are +0.4%, while the Nasdaq is +0.3%.

Wall Street (SPY) (QQQ) stock news

US nonfarm payrolls +531k versus 450k estimate and previous 194k.

Peloton (PTON) shares collapse in premarket after weak earnings last night. See here.

Tesla (TSLA) raises prices by $1,000. See more here.

Shake Shack (SHAK) up 9% on EPS beat but revenue miss. BTIG upgrades with a $100 price target.

Pfizer (PFE) says its experimental covid pill reduced the risk of hospitalization and death by 90%. Up 9% premarket.

DraftKings (DKNG) drops 8% on guidance and earnings.

CanopyGrowth (CGC) beats on EPS, but revenue misses, stock falls 3%.

Emergent Bio (EBS) falls 17% as the US government ends contract.

Nvidia (NVDA) soars to record highs on QCOM earnings and Wells Fargo article, see here.

Expedia (EXPE) up over 10% on strong EPS beat, over double.

AirBnB (ABNB) also beats as travel is back on.

BigCommerce (BIGC) up 16% on earnings beat.

UBER beats on EPS, up 1%.

Datadog (DDOG) beats on EPS, up 14%.

Pinterest (PINS): EPS beat of 5 cents with revenue also ahead. Up 3% premarket.

BioNTech (BNTX) down 11% and Moderna (MRNA) down 15% on data from competitor Pfizer (PFE), see above. Goldman also lowered price target on Moderna.

Square (SQ) sees Bitcoin helping out as EPS matches forecasts but revenue misses.

Canada Goose (GOOS) up 12% on earnings.

Upgrades, downgrades

Source: Benzinga Pro

Economic releases

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.

AUD/USD keeps range near 0.6950 after Australian trade data

AUD/USD consolidates near a two-month low, trading around mid-0.6900s in the Asian session on Thursday amid a bullish US Dollar. The US PCE data tempered October Fed hike bets, though oil-driven inflation fears remain supportive of elevated US bond yields. Meanwhile, Australia's trade surplus shrank sharply in August to AUD495M, having limited impact on the Aussie Dollar and the pair.

USD/JPY sits at weekly top above 158.00 as bullish USD counters intervention risks

USD/JPY is sitting at the top end of its weekly range above 158.00 in the Asian session on Thursday. Despite the softer US PCE data, oil-driven inflation risks keep US bond yields elevated near multi-year highs. Moreover, the US-Iran standoff benefits the safe-haven US Dollar and supports the pair. Broad US Dollar strength counters hawkish BoJ expectations and Japanese intervention risks.

Gold alternates gains with losses below $4,200

Gold trades without a clear direction on Thursday, always below the key $4,200 mark per troy ounce. The yellow metal’s vacillating price action comes amid the marked advance in the US Dollar coupled with steady effervescence in the Middle East conflict.

Crypto Today: Bitcoin, Ethereum, XRP struggle to regain momentum amid returning ETF outflows

Bitcoin trades broadly between support at $82,500 and resistance at $85,000. Ethereum similarly remains under pressure, trading below $2,700 while the $2,600 level provides immediate support. At the same time, Ripple has slipped below the pivotal $1.50 level.

Markets are pricing a Fed pause. The jobs data says the hike is still coming

The market has rapidly changed its mind about the Fed. Only a week ago, investors saw an October interest-rate hike as the most likely outcome. However, softer inflation and cautious comments from policymakers have since turned a pause into the dominant scenario.

Markets are pricing a Fed pause. The jobs data says the hike is still coming

The market has rapidly changed its mind about the Federal Reserve (Fed). Only a week ago, investors saw an October interest-rate hike as the most likely outcome. However, softer inflation and cautious comments from policymakers have since turned a pause into the dominant scenario. Yet beneath that dramatic repricing, the US economy is sending a considerably less dovish message.