US STOCKS-Wall Street indexes rise after strong jobs data

Shockwave Medical

05/04/2024 21:28

* 
      Tesla falls on report automaker scrapping low-cost car
plans 
    

        * 
      March nonfarm payrolls stronger than expected
    

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      Indexes up: Dow 0.8%, S&P 500 1.1%, Nasdaq 1.2%
    

  
 (Updates to 1610 ET)
    By Chibuike Oguh
       NEW YORK, April 5 (Reuters) - U.S. stocks finished
higher on Friday after a strong jobs report reinforced the view
that the economy remains healthy even as it suggested the
Federal Reserve could delay cutting interest rates.
    All major S&P 500 sectors advanced, with communication
services  .SPLRCL , industrials  .SPLRCI  and technology
 .SPLRCT  the top gainers.
    U.S. Labor Department data showed employers hired far more
workers in March than expected and kept steadily lifting wages,
suggesting the economy ended the first quarter on solid ground.
    The data stoked expectations the Fed will likely delay
cutting interest rates given that a recession is nowhere in
sight, said Tom Plumb, president and portfolio manager at Plumb
Funds in Madison, Wisconsin.
    "What we are continuing to see is that a robust economy is
not necessarily inflationary, and this labor report, even though
it's just for one month, reinforces that there's less likelihood
of a recession, which is more important than the expectations of
the timing of interest rate reductions," Plumb said. 
    The Dow Jones Industrial Average  .DJI  rose 307.06 points,
or 0.80%, to 38,904.04, the S&P 500  .SPX  gained 57.13 points,
or 1.11%, to 5,204.34 and the Nasdaq Composite  .IXIC  gained
199.44 points, or 1.24%, to 16,248.52.
    Indexes posted declines for the week, however, following
mixed economic data during the week including a soft services
activity report and a stronger manufacturing report.
        For the week, the Dow fell 2.3%, the S&P 500 dropped 1%
and the Nasdaq declined 0.8%.     
    Money markets are now pricing in around two rate cuts this
year, down from three a few weeks ago, according to LSEG.
    Tesla  TSLA.O  bucked the day's broader market trend, with
its shares ending down 3.6% following a Reuters report that the
electric carmaker had canceled its inexpensive car that was
expected to drive its growth into a mass-market automaker.
    Among the day's gainers, Krispy Kreme  DNUT.O  rose 7.3%
after Piper Sandler analysts upgraded the doughnut chain to
"overweight" from "neutral". Shockwave Medical  SWAV.O  gained
2% after Johnson & Johnson  JNJ.N  agreed to buy the medical
device maker for $12.5 billion.
    Volume on U.S. exchanges was 10.11 billion shares, compared
with the 11.76 billion average for the full session over the
last 20 trading days.  
        Advancing issues outnumbered declining ones on the NYSE
by a 1.44-to-1 ratio; on Nasdaq, a 1.13-to-1 ratio favored
advancers.
  
        The S&P 500 posted 20 new 52-week highs and 5 new lows;
the Nasdaq Composite recorded 67 new highs and 136 new lows.
  

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US wages growth    https://reut.rs/3VM1MIs
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 (Reporting by Chibuike Oguh in New York, additional reporting
by Shristi Achar A and Shashwat Chauhan in Bengaluru; Editing by
David Gregorio)
 ((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters
Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))