The anticipation was high in the bond market as Treasury yields eased ahead of the release of a crucial report from the U.S. government on Friday. This report would reveal how many jobs employers added last month, and economists were expecting to see a slowdown in hiring.
Chris Larkin, managing director of trading and investing at E-Trade from Morgan Stanley, noted that the markets were eagerly awaiting any data that could indicate the economy was not heating up as much as it did in the first quarter of 2024. This could potentially give the Federal Reserve more room to consider cutting rates.
Meanwhile, the stock market saw a boost from earnings reports of several big companies. Qualcomm saw a 9.7% rise after surpassing profit and revenue forecasts for the latest quarter. Carvana also surged 33.8% higher after reporting better-than-expected results, driven by strong sales.
MGM Resorts International and Apple also saw gains after exceeding profit and revenue expectations. However, Etsy experienced a 15.1% drop as it only met analysts’ expectations, citing a challenging consumer environment.
DoorDash faced a 10.3% decline after reporting a larger loss than expected, while Peloton Interactive announced job cuts and a change in leadership, leading to a 2.8% loss in its stock.
Linde, despite reporting stronger results than expected, saw a 5.2% decline due to falling short of revenue expectations. In the bond market, yields fell following some economic reports, including a positive sign in the job market but a potentially concerning report on labor productivity.
The economy is currently in a delicate balance, aiming to maintain strength without exacerbating inflation concerns. Federal Reserve Chair Jerome Powell’s recent comments indicated a cautious approach to interest rate cuts, with traders now expecting fewer cuts than initially forecasted for 2024.
Overall, the market remains dynamic and responsive to economic indicators, with investors closely monitoring developments to navigate the uncertain economic landscape.
