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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Return to Sender who wrote (85027)

5/9/2020 12:08:30 PM

From: Return to Sender

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Stocks rally to end week, as investors see silver lining in jobs report
08-May-20 16:15 ET

Dow +455.43 at 24331.32, Nasdaq +141.66 at 9121.34, S&P +48.61 at 2929.80

briefing.com

[BRIEFING.COM] U.S. stocks extended weekly gains on Friday, as the market saw reasons to stay positive on the economic outlook despite the dismal employment report for April. The S&P 500 (+1.7%), Dow Jones Industrial Average (+1.9%), and Nasdaq Composite (+1.6%) advanced more than 1.5%, while the Russell 2000 rose 3.6%.

The gains were broad, with all 11 S&P 500 sectors and all 30 Dow components closing in positive territory. Relative strength was found in the S&P 500 energy (+4.3%), industrials (+2.5%), materials (+2.4%), and consumer staples (+2.3%) sectors, while stocks in the health care sector (+0.5%) underperformed.

In April, nonfarm payrolls declined by 20.5 million (Briefing.com consensus -21.00 million), and the unemployment rate increased to 14.7% (Briefing.com consensus 16.2%). Those were the worst readings in the post-World War II era, but the number of unemployed persons said to be on "temporary layoff" increased about ten-fold to 18.1 million in April.

The latter is noteworthy because its shows that most workers who were recently laid off are optimistic in being reemployed. That sentiment would be consistent with 1) the market's view that the jobs data can't get any worse and 2) news that more companies are restarting operations as states move along with their reopening plans.

Apple (AAPL 310.13, +7.21, +2.4%) plans to reopen stores in several U.S. states next week. Boeing (BA 133.44, +4.79, +3.7%) plans to reopen its 737 MAX factory later this month. Uber (UBER 32.79, +1.86, +6.0%) observed ride-sharing growth over the past three weeks, and tickets to Walt Disney's (DIS 109.16, +3.59, +3.4%) Shanghai theme park sold out within minutes.

Separately, U.S.-China tensions appeared to simmer today after the two sides reportedly pledged to make progress on their Phase One trade deal.

U.S. Treasuries retreated throughout the day and closed near their session lows. The 2-yr yield increased three basis points to 0.14%, and the 10-yr yield increased five basis points to 0.68%. The U.S. Dollar Index declined 0.1% to 99.78. WTI crude futures rose 4.5%, or $1.06, to $24.71/bbl.

Reviewing Friday's economic data:

April nonfarm payrolls declined by 20.5 million (Briefing.com consensus -21.00 million). April private sector payrolls declined by 19.52 million (Briefing.com consensus -21.30 million). April unemployment rate was 14.7% (Briefing.com consensus 16.2%), versus 4.4% in March. April average hourly earnings were up 4.7% (Briefing.com consensus +0.4%) after increasing an upwardly revised 0.5% (from 0.4%) in March.
- The key takeaway from the report is that there is a lot more to it than meets the headline eye, most of which speaks to the depth of the country's economic problems and the challenges in bouncing back from them in rapid-fire fashion.
Wholesale inventories declined 0.8% in March (Briefing.com consensus -1.0%) after declining 0.7% in February.

Investors will not receive any notable economic data on Monday.

Nasdaq Composite +1.7% YTD
S&P 500 -9.3% YTD
Dow Jones Industrial Average -14.7% YTD
Russell 2000 -20.3% YTD

Market Snapshot

Dow	24331.32	+455.43	(1.91%)
Nasdaq	9121.34	+141.66	(1.58%)
SP 500	2929.80	+48.61	(1.69%)
10-yr Note	-25/32	0.681

NYSE	Adv 2455	Dec 468	Vol 908.7 mln
Nasdaq	Adv 2459	Dec 792	Vol 3.7 bln

Industry Watch

Strong: Energy, Industrials, Materials, Consumer Staples

Weak: Health Care

Moving the Market

-- Stocks extend weekly gains despite dismal employment report for April

-- Nonfarm payrolls decline by 20.5 million (Briefing.com consensus -21.0 million), unemployment rate increased to 14.7%

-- Most workers see layoffs as temporary

-- More companies announced plans to reopen or saw improving business conditions

WTI crude rises more than 4% to end the week
08-May-20 15:30 ET

Dow +382.04 at 24257.93, Nasdaq +120.93 at 9100.61, S&P +41.57 at 2922.76
[BRIEFING.COM] The S&P 500 is up 1.4% and near session highs.

One last look at the S&P 500 sectors shows ten of the 11 sectors trading higher by at least 1.0%. The energy (+3.7%) and industirals (+3.3%) sectors lead the advance, while the health care sector (+0.5%) underperforms.

WTI crude futures settled up $1.06 (+4.5%) to $24.71/bbl.