Inventories opened lower on Friday after the release of the monthly US employment report, which showed massive job losses in March, before the extent of the economic devastation from the coronavirus pandemic was over. fully realized.
What do the main indexes do?
Dow Jones industrial average
open 60 points, 0.3%, down, near 21,353, while the S&P 500
lost 5 points, 0.2%, to open near 2521. The Nasdaq Composite index lost 10 points or 0.1% to open at around 7,477.
The Dow Jones closed Thursday up 469.93 points, or 2.2%, to 21,413.44 in an unstable trade. The S&P 500
finished 56.40 points, or 2.28%, up to 2,526.90, while the Nasdaq gained 126.73 points, or 1.72%, to close at 7,487.31.
What drives the market?
The March Jobs Report found that 701,000 Americans lost their jobs in March, which dispels assumptions that the impact of coronavirus shutdowns will not be felt for another month. This is the first drop in the wage bill since September 2010 and not far from the worst month of job losses in the 2008-2009 financial crisis.
Unemployment rate rose to 4.4% as employers just started cutting hiring and cutting wages before social distancing practices that shut down large swathes of the US economy to stop the spread of the virus .
The report fails to capture all the damage caused by the virus, as the Bureau of Labor Statistics collected its data during the week ending March 12, just as the nation began its near-closure.
Actions on Thursday rocked more timely weekly jobless claims data, which showed the number of first jobless claims jumped 6.6 million previously.
However, futures stocks cut losses Friday after the employment data. Markets had sold off sharply while a “vertical downturn” in the economy was underway, economist David Rosenberg told MarketWatch. “Now the problem is less about depth than duration. Indeed, investors believe there is a V to come with the stimulus that will kick in in the coming weeks. “
Oil futures continued to rise overnight, with Saudi Arabia, Russia and other major producers to debate production cuts of at least 6 million barrels a day on Monday, the Wall reported. Street Journal. Oil jumped about 25% on Thursday, lifting shares of battered energy companies after President Donald Trump said Saudi Arabia and Russia were on the verge of cutting production, ending a war devastating prices that sent the American benchmark for crude
to an 18-year low, with oil falling more than 60% in the first quarter.
The IHS Markit US Service Purchasing Managers’ Index for March is expected at 9:45 a.m. (Eastern time), and the Institute for Supply Management non-manufacturing index is expected to be released at 10:00 a.m. ( Eastern time).
On Friday in Europe, the IHS Markit Composite Purchasing Managers Index fell from 51.6 in February to 29.7 in March, the lowest level since the start of the survey in 1998, which means that the GDP of the eurozone could already fall at an annualized rate of almost 10%.
Which companies are targeted?
Actions of Citrix Systems Inc.
down 0.4% despite an increase in Raymond James’s price target.
Bloomin ‘Brands Inc.
Executives will forgo wages to try to manage cash flow, the company announced on Friday. Bloomin ‘, whose brands include Outback Steakhouse, has seen its stocks lose nearly 70% of their value in the past year. Stocks jumped more than 3% after the bell.
lululemon athletica inc.
The shares were down at the start of the session after the company announced on Thursday evening that it would continue to pay sales workers until June 1, whether or not the stores reopen.
The shares rose Friday after an upgrade from Goldman Sachs.
How are other markets trading?
Government bond yields continued to decline, with the 10-year US Treasury yield
down about 3 basis points to 0.59%.
Oil markets rebounded from hopes that production would soon be curbed, with the price of a barrel of West Texas Intermediate crude oil for delivery in May
up over 9% to $ 27.70 a barrel on the New York Mercantile Exchange.
In precious metals, gold
For June, deliveries fell to $ 1,620 an ounce in volatile top-to-bottom trading on Comex.
The US dollar
continues to climb, up 0.5% against a basket of major trading partners, according to the ICE US Dollar index.
European stocks mixed with the Stoxx Europe 600 index
0.4% less and the FTSE 100
See: As the Fed enters the municipal bond market, will that be enough?