(Bloomberg) — Wall Street traders gearing up for Friday’s jobs report sent stocks higher, with some of the world’s largest technology companies driving gains. Treasuries also rose, while the dollar retreated.
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Just 24 hours ahead of key payrolls data, a reading on jobless claims topped estimates — consistent with an uptick in the number of job cuts that would help make the case for the Federal Reserve to start lowering rates. While the numbers wouldn’t necessarily set the tone for trading, they also didn’t add more noise — especially after recent signs of labor-market strength.
“As always, the monthly jobs report will have the final say,” said Chris Larkin at E*Trade from Morgan Stanley. “Investors will be looking for a ‘Goldilocks’ number that won’t give the Fed any reason to delay rate cuts, but also doesn’t suggest the labor market is taking a serious downturn.”
The government’s monthly employment report due Friday is expected to show a roughly 215,000 gain in nonfarm payrolls, which include private- and public-sector jobs. That pace, the median estimate in a Bloomberg survey, would be the slowest since November, following three solid months averaging 265,000.
The S&P 500 almost wiped out its weekly losses, while the tech-heavy Nasdaq 100 outperformed — with Microsoft Corp. and Nvidia Corp. leading gains in megacaps. Treasury 10-year yields fell three basis points to 4.32%.
A survey conducted by 22V Research shows there is no clear consensus on the market reaction to payrolls on Friday.
Among the investors surveyed, 29% think the response will be “risk-on,” 32% said “risk-off,” and 39% are betting on a “mixed/negligible” reaction.
Traders will also keep a close eye on a slew of Fed speakers after Jerome Powell signaled Wednesday that policymakers will wait for clearer signs of lower inflation before cutting interest rates, even though a recent bump in prices didn’t alter their broader trajectory.
“Powell set the tone. He wants to ease, the question is when will he have enough cover to justify that ease and move forward without multiple dissents?” said Andrew Brenner at NatAlliance Securities. “June still looks like the odds favorite, but barely.”
Corporate Highlights:
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Ford Motor Co. is delaying the roll out of an electric three-row sport utility vehicle by two years, extending the layoff of 2,700 workers in Canada who were set to begin building it in 2025.
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Boeing Co.’s latest 737 Max crisis has worsened an airline shortage of popular narrowbody aircraft, sending the cost of used-jet rentals to the highest level in years.
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Levi Strauss & Co. reported higher-than-expected sales and profit in the first quarter that helped fuel a more optimistic full-year outlook.
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Amylyx Pharmaceuticals Inc. will pull its drug for a progressive, fatal nerve disease from the market after a trial showed that patients taking it fared no better than those getting a placebo on a variety of measures.
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Block Inc. was cut to underweight at Morgan Stanley, which said the downgrade reflects limited additional opportunity for the company’s Cash App to expand banking and credit services.
Key events this week:
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Eurozone retail sales, Friday
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US unemployment, nonfarm payrolls, Friday
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Fed’s Michelle Bowman, Thomas Barkin and Lorie Logan speak, Friday
Some of the main moves in markets:
Stocks
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The S&P 500 rose 0.7% as of 9:44 a.m. New York time
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The Nasdaq 100 rose 0.9%
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The Dow Jones Industrial Average rose 0.5%
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The Stoxx Europe 600 rose 0.2%
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The MSCI World index rose 0.8%
Currencies
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The Bloomberg Dollar Spot Index fell 0.2%
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The euro rose 0.3% to $1.0873
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The British pound rose 0.2% to $1.2679
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The Japanese yen rose 0.1% to 151.53 per dollar
Cryptocurrencies
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Bitcoin rose 2.5% to $67,383.6
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Ether rose 2% to $3,372.67
Bonds
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The yield on 10-year Treasuries declined three basis points to 4.32%
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Germany’s 10-year yield declined five basis points to 2.34%
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Britain’s 10-year yield declined seven basis points to 3.99%
Commodities
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West Texas Intermediate crude fell 0.2% to $85.27 a barrel
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Spot gold fell 0.5% to $2,287.50 an ounce
This story was produced with the assistance of Bloomberg Automation.
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