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S&P 500 Gains for Seventh Straight Session, Nears 2900 Level
05-Apr-19 16:20 ET
Dow +40.36 at 26424.99, Nasdaq +46.91 at 7938.69, S&P +13.35 at 2892.74

https://www.briefing.com/investor/markets/stock-market-update/2019/4/5/s-and-p-500-gains-for-seventh-straight-session-nears-2900-level.htm

[BRIEFING.COM] 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 seventh straight session, increased its weekly gain to 2.1%, and closed within ten points of the 2900 level.

The Dow Jones Industrial Average (+0.2%), the Nasdaq Composite (+0.6%), and the Russell 2000 (+1.0%) extended their weekly gains to 1.9%, 2.7%, and 2.8%, respectively.

The S&P 500 energy sector (+1.7%) led the advance as oil prices ($63.10/bbl, +0.86, +1.4%) rose on labor market strength in the U.S. and heightened geopolitical risk in Venezuela and Libya. Conversely, the materials sector (-0.1%) was the lone group that finished lower.

Stocks began the day modestly higher after the release of the employment report and proceeded to drift sideways throughout the day. The March report featured solid nonfarm payrolls growth of 196,000 (Briefing.com consensus 170,000) and no inflation pressure, as average hourly earnings growth decelerated to 3.2% yr/yr from 3.4% yr/yr in February.

In brief, this report accomplished three important things: (1) the yr/yr moderation in wage growth will keep the Fed sidelined (2) it exposed February's weak payrolls data to be an aberration and (3) it helped quiet recession concerns.

As for trade, nothing concrete came out of this week's high-level talks in Washington, although the tone remained constructive and hopeful about getting an agreement finalized. President Trump said it will be known probably in the next four weeks or so if a deal gets done.

Corporate news was light, although there were some notable analyst recommendations. Dow Inc (DOW 57.24, -2.47) lost 4.1% after JP Morgan initiated the stock with an Underweight rating; Boston Beer (SAM 268.33, -15.67) lost 5.5% after Goldman Sachs downgraded the stock to Sell from Neutral, citing expectations for slowing sales growth; and Intel (INTC 55.60, -0.32) dipped 0.6% after Wells Fargo cut its rating to Market Perform from Outperform.

U.S. Treasuries finished little changed, although they did see an uptick from early lows after the jobs report. The 2-yr yield increased one basis point to 2.34%, and the 10-yr yield decreased one basis point to 2.50%. The U.S. Dollar Index increased 0.1% to 97.39.

Reviewing Friday's economic data, which included the Employment Situation Report for March and the Consumer Credit report for February:

Nonfarm payrolls increased by 196,000 in March (Briefing.com consensus 170,000) while nonfarm private sector payrolls increased by 182,000 (Briefing.com consensus 160,000). Avg. hourly earnings rose just 0.1% (Briefing.com consensus +0.2%).
The key takeaway from the March Employment Situation Report is that it had that Goldilocks hue again of solid job growth and no inflation worries.
Total outstanding consumer credit increased by $15.2 billion in February (Briefing.com consensus $18.0 billion) after increasing an upwardly revised $17.7 billion (from $17.0 billion) in January.
Once again, credit growth was rooted in nonrevolving debt, like car loans and student loans, while revolving credit (credit cards) expanded at a more muted pace.

Looking ahead, investors will receive the Factory Orders Report for February on Monday.

Nasdaq Composite +19.6% YTD
Russell 2000 +17.4% YTD
S&P 500 +15.4% YTD
Dow Jones Industrial Average +13.3% YTD