Here are the top news, trends, and analysis investors need to get their trading day started:
1. Dow futures fell on poor jobs report
Traders on the floor of the New York Stock Exchange.
Source: NYSE
Dow futures turned negative and 10-year government bond yields briefly fell below 1.5% after the government’s April employment report fell well below estimates. The economy hired only 266,000 non-agricultural workers last month, the Labor Department said on Friday morning. It is estimated that 1 million new additions were required. The Nasdaq, which recently moved in the opposite direction from bond yields, should open significantly higher.
The Dow Jones Industrial Average rose nearly 1% on Thursday to another record high. A similar rise in the S&P 500 resulted in the index falling within 10 points of last month’s record close. The Nasdaq rose 0.4%, breaking a four-session loss but still more than 3.5% from the record close of April. Ahead of Friday’s Wall Street opening, the tech-heavy Nasdaq fell over 2.3% for the week. The Dow and S&P 500 rose nearly 2% and nearly 0.5%, respectively, over the week.
Pfizer’s shares were unchanged, while BioNTech rose 5% on the Friday before entering the market after the two companies announced they would file for full approval of their Covid vaccine in the United States. Full approval would allow companies to market the two-shot regimen directly to consumers. The FDA granted emergency approval status in late December.
April 2nd jobs really win the mark
Server Adrian Almanza brings appetizers to a table at the Satay Thai Bistro and Bar in Las Vegas, Nevada, March 28, 2021.
Bridget Bennett | Reuters
The hiring of staff in April was a huge disappointment. The number of non-farm workers rose much less than expected and the country’s unemployment rate rose to 6.1% as business reopenings struggled with an escalating shortage of available labor. The originally estimated 916,000 new jobs in March have been revised significantly to 770,000, despite a sharp upward revision to 536,000 in February.
Investors are watching these employment numbers closely as the Federal Reserve has pledged to maintain its extraordinarily simple monetary policy, including near zero interest rates, until the job market heals and inflation picks up. However, many traders believe that inflation will quickly become a problem and the Fed may need to rethink its highly accommodative stance and make adjustments earlier than forecast.
3. The Fed warns of possible “significant declines” in asset prices
The Federal Reserve building can be seen in Washington, DC on March 19, 2021.
Daniel Slim | AFP | Getty Images
Rising asset prices in stock markets and elsewhere pose a growing threat to the financial system, the Fed warned. In its semi-annual financial stability report, the central bank said the danger lurks on Thursday should market sentiment change. “High asset prices reflect in part the persistently low levels of government bond yields. However, valuations of some assets are elevated from historical norms even when measures are applied that take government bond yields into account,” the report warns. “In this environment, asset prices may be vulnerable to significant declines should appetite decline.”
4. India reports more than 400,000 new daily cases for the third time in a week
Health care workers and health care workers transport a woman out of an ambulance for treatment at a COVID-19 care facility amid the spread of coronavirus disease (COVID-19) in Mumbai, India on May 4, 2021.
Niharika Kulkarni | Reuters
Daily India has seen new cases of Covid in India for the third time this month as the South Asian country battled a devastating second wave. Health ministry data released on Friday showed 414,188 new Covid infections over a 24-hour period, in which at least 3,915 died from the disease. However, reports of overwhelmed crematoriums and cemeteries, as well as a growing number of obituaries in newspapers, suggest that the official numbers underestimate the real death toll. Many places have tightened covid containment measures despite the Indian government resisting a national lockdown.
5. Peloton hits $ 165 million as a result of a recall of its treadmills
A monitor displays the signage of Peloton Interactive Inc. during the company’s IPO across the Nasdaq MarketSite in New York, the United States, on Thursday, September 26, 2019.
Michael Nagle | Bloomberg | Getty Images
Peloton anticipates fiscal fourth quarter revenue to decrease $ 165 million due to a recall of its treadmills. Peloton’s shares fell nearly 15% on Wednesday after the company announced a voluntary recall after a child died and dozens were injured in accidents involving the Tread + machine. The stock rose 1.4% on Thursday.
Shares rose nearly 7% on the Friday before going public, the morning after the fitness equipment company reported third-quarter sales up 141% to a better-than-expected $ 1.26 billion. Demand for cycles, which make up most of the business, remained strong. Peloton’s adjusted loss per share of 3 cents for the third quarter of fiscal year was well below estimates.
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