Daily markets: Markets feel bullish after Friday’s US jobs report
The big picture of today
Markets are in a festive mood as the 3-day Easter weekend returns, thanks to the strong March employment report for the United States which came out on Friday. Japan’s Nikkei 225 rose 0.8% and South Korea’s Kospi rose 0.3%, while markets in China, Hong Kong, Australia and Europe were closed for the day for the holidays. . India Nifty 50 and BSE Sensex both fell more than 1% compared to the increase in Covid-19 cases. US equity futures are showing positive moves at the open.
The yield on US Treasury bonds edged up this morning, with the 10-year hitting 1.7181% and the 30-year hitting 2.374%.
First of all, good news: The United States reported a new record of 4 million new Covid-19 vaccines on Saturday, bringing the weekly average of new vaccines per day to more than 3 million. United States, United States!
More than a year after the start of the pandemic in Europe, Covid-19 infections, hospitalizations and deaths are on the rise again. According to French Prime Minister Jean Castex, “The epidemic is spreading rapidly, and it is spreading everywhere. Over the past two weeks, the number of new cases registered in the country has increased by around 55%, 75% in Germany and 95% in Belgium.
Johnson & Johnson (JNJ) began vaccinating adolescents in an ongoing Phase 2a clinical trial for its COVID-19 vaccine candidate.
The Centers for Disease Control and Prevention has released new guidelines for domestic travel, saying people fully immune to COVID-19 can travel to the United States and do not need to be tested or self-quarantined . As part of the new guidelines for international travel, the CDC also said fully vaccinated Americans can travel abroad without needing a COVID-19 test prior to their departure, unless required by that country and do not need to self-quarantine upon return, unless required by their condition. However, they should have a negative test result before returning to the United States and be tested within five days of their return.
China’s central bank has asked lenders to restrict credit supply amid concerns over asset bubbles and financial stability after new loan growth spikes 16% in first two months of 2021 .
Today brings some other final PMI estimates for March from around the world:
- Jibun Bank Services in Japan fell from 46.3 to 48.3, an improvement but still in contraction mode (less than 50).
- India’s Markit Manufacturing slowed to 55.4 from 57.5, but marked the eighth consecutive month of expansion in the country’s manufacturing sector, but the lowest reading since last August, amid the disruptions from the coronavirus.
The United States added 916,000 in March, crushing the consensus of 675,000, and the unemployment rate fell to 6% from 6.2%. Job growth was widespread in March, driven by gains in recreation and hospitality, public and private education, and construction.
FedEx (FDX) will release its April monthly economic update on Thursday. Last month, the company forecast U.S. GDP to grow 5.7% in 2021 and 4.1% in 2022 amid improving trends in COVID-19 infection rate, rising rates vaccination program and a substantial budgetary boost.
According to credit reporting firm TransUnion, 10.9% of at-risk borrowers with outstanding auto loans or leases were more than 60 days past due in February, up from 10.7% in January and 8.7% in February 2020. This was the sixth consecutive increase in MoM and the highest level in monthly data dating to January 2019.
Later today, Markit Services PMI, ISM Non-Manufacturing PMI and Factory Orders for February.
The US stock markets were closed on Friday for the Easter holidays.
Actions to watch
Data of 533 million Facebook (FB) users, including phone numbers, Facebook IDs, full names, locations, birthdays, and in some cases email addresses, were posted free on a “low-level” hacking forum. Apparently, the information available includes the cell phone number of CEO Mark Zuckerberg.
GameStop (GME) announced that its sales were up 11% year-on-year for the first nine weeks of its 2021 fiscal year. In the four-week period for February, total global sales increased by approximately 5.3%, while for the five-week period of March, total world sales increased by about 18%.
You’re here (TSLA) produced just over 180,000 vehicles and delivered nearly 185,000 vehicles.
Li Auto (LI) reported that its March deliveries increased 239% year-on-year to 4,900 Li ONE, bringing its March quarter deliveries to 12,579, up 334.4% year-over-year.
Apple (AAPL) announced the introduction of two entirely new game categories – Timeless Classics and App Store Greats – and the addition of over 30 “amazing” titles to Apple Arcade.
IMAX (IMAX) marked its biggest national opening weekend in over a year as “Godzilla vs. Kong” won $ 4.5 million across 284 screens.
IHS Markit has estimated that the global chip shortage could cost automakers 1.3 million production vehicles in the second quarter, and that the shortage could extend into the fourth quarter, a quarter later than expected.
Honda engine (HMC) is expected to resume normal production today at its North American auto, engine and transmission plants after production cuts affected all of its US, Mexican and Canadian auto plants.
During the bank holiday weekend, General Motors (DG) unveiled a fully electric Hummer SUV that will exceed $ 110,000 when it goes on sale in 2023.
After today’s market closes, Duck Creek Technology (DCT) is expected to publish its quarterly results. Investors looking to learn the details of this report as well as those that will become available in the coming days should visit Nasdaq earnings calendar page.
On the horizon
- April 6: JOLTS Jobs, IBD / TIPP Economic Optimism, API Crude Oil Inventories
- April 7: Trade balance, EIA energy stocks, FOMC report
- April 8: Weekly unemployment claims
- April 9: PPI, Inventories of wholesalers
- April 12: Monthly budget statement for March
- April 13: Inflation, API Crude Oil Inventory Report
- April 14: Import / Export Prices, EIA Energy Stock Reports
- April 15: Retail Sales, NY Empire State Manufacturing, Philadelphia Fed Manufacturing, Weekly Unemployment Claims, Industrial Production, Business Inventories, NAHB Housing Market Index, Net Equity and ICT Flows, Foreign Bond Investment
- April 16: Housing starts, building permits, Michigan consumer sentiment
Thought of the day
“Science has never found a tranquilizer as effective as a sunny spring day.” Wilton Room E
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.