$DIA, $SPY, $QQQ, $RUTX, $VXX
FLASH: The S&P 500 gained 0.5% Friday in a broad-based advance that was supported by a Goldilocks Employment Situation Report for March. The benchmark index advanced for the 7th session running, increasits its weekly gainer to 2.1%, and closed within 10 points of the 2900 level.
The US labor market sprang back to hit the Fed’s sweet spot, alleviating concern about a downturn.
Better-than-expected hiring in March and unemployment hanging near 50 yr lows signal worker demand remains robust even as employers confront economic crosscurrents.
Wage gains eased, reinforcing the Fed’s message that interest rates are on hold, while the NFPs figures indicate February’s weakness was an anomaly.
“This report was welcome evidence that the economy is not falling off a cliff, there’s not a recession coming. This is the kind of report that we needed after such an eye-popping number in February,” said the chief US economist at Morgan Stanley. “I would call this a normalization, after very volatile numbers in the first part of the year.”
The report aligns with Fed officials’ views that while the job market remains tight, global growth concerns weigh on the outlook and inflation is subdued. Despite signs of recent weakness in manufacturing and retail sales, and reduced labor-force participation, the report shows the economy is broadly intact.
Payrolls rose 196,000 after a 33,000 advance, Friday’s Labor Department report showed, topping the 177,000 forecast, and boosting the February tally from an initially reported 20,000 gain.
Job growth is not so strong that 1 starts wondering if there will be inflationary pressure and not weak enough to signal a far more significant slowdown. It is neither worrisome from a recession point of view, nor from an inflationary POV.
White House economic adviser Larry Kudlow reiterated that the Fed should cut interest rates to preempt any potential threats to the economy amid muted inflation.
President Trump took that a step further, saying the Fed should cut rates and reverse the shrinking of its balance sheet, stepping up pressure on the FOMC on monetary policy. “They should get rid of quantitative tightening” and instead restore quantitative easing, President Trump told reporters at the White House Friday.
Friday, the major US stock market indexes finished at: DJIA +40.36 at 26424.99, NAS Comp +46.91 at 7938.69, S&P 500 +13.35 at 2892.74
Volume: Trade on the NYSE came in at 755-M/shares exchanged
- NAS Comp +19.6% YTD
- Russell 2000 +17.4% YTD
- S&P 500 +15.4% YTD
- DJIA +13.3% YTD
HeffX-LTN’s overall technical outlook for the US major stock market indexes is Bullish to Very Bullish at the week ending 5 April 2019.
Have a terrific weekend.