By William Watts and Mark DeCambre, MarketWatch
The U.S. generated 263,000 jobs in April, Labor Department data
showed
Stock benchmarks headed firmly higher Friday morning after a key
reading of April employment came in hotter than expected, with
unemployment falling to a nearly 50-year low, underscoring the
health of the U.S. job market.
How are benchmarks performing?
The Dow Jones Industrial Average rose 163 points, or 0.6%, to
26,468, the S&P 500 index climbed 18 points, or 0.6%, at 2,935,
while the Nasdaq Composite Index advanced 58 points, or 0.7%, at
8,094.
For the week, all three main benchmarks were poised for weekly
skid of at least 0.2%, with the Nasdaq poised to halt a weekly win
streak at five with a 0.7% five-session drop.
What's driving the market?
The April jobs report underscored a healthy labor market that
produced a stronger-than-expected
(http://www.marketwatch.com/story/us-creates-263000-jobs-in-april-unemployment-falls-to-36-2019-05-03)
263,000 new jobs in April, helping to drive down the unemployment
rate to a 49-year low of 3.6%, topping economists' estimates polled
by MarketWatch for monthly job gains of 217,000.
The jobless rate slid from 3.8% in March to hit the lowest level
since December 1969. The average wage paid to American workers rose
6 cents, or 0.2%, to $27.77 an hour, while the 12-month rate of
hourly wage gains was unchanged at 3.2%. Hours worked each week
fell 0.1 hour in April to 34.4.
Read:The jobs report might be incredibly strong for an unusual
reason
(http://www.marketwatch.com/story/why-the-april-jobs-report-could-be-unusually-strong-and-not-reflecting-underlying-economy-2019-05-02)
The labor market data appeared to help stock-market bulls
momentarily shake off a two-day skid for the S&P 500 and Dow,
widely blamed on disappointment with remarks by Federal Reserve
Chairman Jerome Powell on Wednesday. Powell offered no indication
the central bank was eager to move rates either direction
(http://www.marketwatch.com/story/fed-sticks-with-patient-policy-notes-weaker-core-inflation-2019-05-01),
appearing to disappoint investors who had hoped the central bank
would indicate it was tilting toward a rate cut.
A heavy week of earnings results is set to draw to a close.
What stocks are in focus?
Amazon.com Inc.(AMZN) stocks were rising in premarket activity
after billionaire investor Warren Buffett told CNBC late Thursday
that Berkshire Hathaway (BRKA) (BRKA) had bought shares of the
e-commerce giant. Shares of the e-commerce giant rose 2.1%.
Read:Berkshire buying Amazon is a wake-up call for individual
investors, says this portfolio manager
(Berkshire%20buying%20Amazon%20is%20a%20wake-up%20call%20for%20retail%20investors,%20says%20this%20portfolio%20manager)
Shares of Newell Brands(NWL) may be in focus after topping Wall
Street expectations for earnings and sales. The company's stock
surge more than 12%.
Shares of Beyond Meat Inc. , the alternative meat company,
extended its gains after its initial public offering on Thursday.
Shares were up about 6.8% on Friday.
What are analysts saying?
"This is another loud and clear signal that the economy is in
really good shape. Jobs--check, wages--check, earnings--check, and
tame inflation--check," wrote Mike Loewengart, v.p. investment
strategy at E-Trade Financial Corp., in a Friday note after the
jobs report.
"We're getting to a point where it's hard to find something to
be concerned about. But that's not an excuse for complacency. As we
enter the back nine of earnings season, traders will likely turn
their attention to potential trade resolutions coming out of
Washington next week. And despite the murmuring of positivity on
that front, there are more than a few questions marks in the air,"
he said.
What else is on the economic calendar?
A reading of advance trade deficit in goods rose 0.7% to $71.4
billion, according to the government report. Economists polled by
MarketWatch expected a $72 billion trade gap.
Looking ahead, Markit is set to release its April services
purchasing managers index at 9:45 a.m. Eastern Time, while the
Institute for Supply Management releases its April nonmanufacturing
index at 10 a.m.
Investors will also hear from a range of Fed speakers. Chicago
Fed President Charles Evans is set to speak at 10:15 a.m., while
Fed Vice Chairman Richard Clarida makes an appearance at 11:30 a.m.
New York Fed President John Williams is set to speak at 1:45
p.m.
How did other markets trade?
China's markets were closed for a holiday, and Japan's Nikkei
remained closed for a 10-day holiday commemorating the installation
of a new emperor earlier this week. Hong Kong's Hang Seng Index
advanced on the day.
European stocks were broadly higher
(http://www.marketwatch.com/story/strong-banks-and-weak-miners-tug-europe-markets-in-opposite-directions-2019-05-02)
as reflected by a 0.6% gain in the Stoxx Europe 600. .
Crude-oil prices traded mixed Friday, while gold prices edged
higher in early trade after settling at its lowest level in about
four months on Thursday. The U.S. dollar index , meanwhile, edged
slightly higher.
(END) Dow Jones Newswires
May 03, 2019 09:44 ET (13:44 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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