• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Jobs In the Spotlight: Stock Market Reverses Course After Massive Selloff
Stock

Jobs In the Spotlight: Stock Market Reverses Course After Massive Selloff

by April 5, 2024
by April 5, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

One day doesn’t make a trend—that’s one lesson we learned from this week’s stock market action. 

The March non-farm payrolls data revealed that the US economy added 303,000 jobs, which is higher than the estimated 200,000. The unemployment rate dropped to 3.8%, down from 3.9%. 

After yesterday’s massive sell-off—mainly due to comments from Fed officials suggesting interest rate cuts may not happen this year—you’d think today’s strong jobs report would have made investors jittery. It would extend the narrative that interest rates will remain on hold for longer. But that’s not what happened. Investors celebrated the strong jobs report, with equities and Treasury yields rising.

The broader indexes closed higher, and the VIX pulled back to 16.13, which was a little high but not too alarming. Although the indexes were down for the week, seeing the broader markets close higher was encouraging after the selling pressure we saw on Thursday. 

It’s possible the stock market was blowing off some steam. Nothing goes up in a straight line and investors should expect an extended market to pull back. Yesterday’s pullback, although massive, was only about a 1% decline. Given that economic data is healthy, investors have no reason to worry. This week, we had good manufacturing and jobs data, so there’s no reason for any panic.

Several stocks made all-time highs as can be seen by the extensive list of stocks that made the StockCharts New All-Time Highs scan. Some notable names filtered in the scan are Meta Platforms (META), ConocoPhillips (COP), and Exxon Mobil (XOM). Several companies in the Energy sector were filtered in this scan. 

Energy stocks have been on a tear. The Energy Select Sector SPDR ETF (XLE) reached a new high again, and its steep ascent is still in play. And it’s not just oil prices that are going up. The SPDR Gold Shares ETF (GLD) and iShares Gold Trust ETF (IAU) hit new all-time highs. Commodities continue to show strength, as seen in the Invesco DB Commodity Index Tracking Fund (DBC).

CHART 1. COMMODITY PRICES CONTINUE TO RISE, ESPECIALLY OIL AND GOLD. Oil prices have climbed higher in a short time. Gold and other commodity prices are also rising.Chart source: StockChartsACP.com. For educational purposes.

But it wasn’t a great day for all stocks. One stock that got hit hard today was Tesla Inc. (TSLA). It was one of the most active stocks in the S&P 500, closing lower by 3.59%. The stock is trading below its 200-day simple moving average with a declining relative strength index (RSI), which is getting close to oversold territory. Looking at the weekly chart of TSLA below, the stock is at a support level, but there’s room for it to drop much further before seeing any signs of reversal. 

CHART 2. TSLA STOCK COULD BREAK SUPPORT. TSLA’s stock price could fall to its next support level at around $102. Chart source: StockCharts.com. For educational purposes.

It’s encouraging to see a recovery at the end of the trading week, but what would be even better would be to see a broad-based rally. We may get that as earnings week kicks off. A rotation into Industrials, Financials, and Materials would positively impact the stock market. So watch the StockCharts Sector Summary panel to identify when the rotation begins.

Earnings Showdown

Earnings season kicks off at the end of the week of April 8, starting with the big banks. That means the focus will be on corporate earnings in the next few weeks. According to FactSet, Q1 year-over-year earnings growth rate for the S&P 500 is expected to be 3.6%. If companies report higher-than-expected earnings and revenues, the market will probably continue trending higher. 

As long as companies generate positive cash flow and show higher profit margins, investors have no reason to sell their investments. 

Important inflation data will also be released next week. The March CPI and PPI will be reported on Wednesday and Thursday. 

Fasten your seatbelts! Next week could see some choppy trading activity. But don’t let a little choppiness make you change your investment strategies unless there’s catastrophic news beyond anyone’s control. 

End-of-Week Wrap-Up

S&P 500 closes up 1.11% at 5,204.34, Dow Jones Industrial Average up 0.80% at 38,904; Nasdaq Composite up 1.24% at 16,248.52$VIX down 1.96% at 16.03Best performing sector for the week: EnergyWorst performing sector for the week: Health CareTop 5 Large Cap SCTR stocks: MicroStrategy Inc. (MSTR); Super Micro Computer, Inc. (SMCI); Coinbase Global Inc. (COIN); Vistra Energy Corp. (VST); Vertiv Holdings (VRT) 

On the Radar Next Week

March Consumer Price Index (CPI)March Producer Price Index (PPI) More Fed speeches Earnings from Citigroup (C), JP Morgan Chase (JPM), Wells Fargo (WFC), Delta Airlines (DAC)

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

You Might Also Like
  • Why This S&P Support Level is SO IMPORTANT
  • Technology Shares SOAR to New All-Time Highs
  • What Can the VIX Reveal To Us In November 2023?
  • It’s Really All About the Retail Sector Now
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Energy is on Fire
next post
Israelis fear Biden’s ‘intolerable’ cease-fire demand means victory for Hamas

You may also like

The Halftime Show: Are Broadline Retailers Starting to Turn?

August 9, 2023

3 Unique RSI Techniques to Maximize Your Investments

February 22, 2024

Is This a Market Bubble – or Investor MANIA?

June 26, 2024

The BULL Case for BITCOIN

May 3, 2024

This S&P 500 Rally is Defying the Experts – Here’s...

September 19, 2024

Are Extremely Overbought Conditions Good or Bad for Stocks?

November 13, 2024

Bitcoin Futures Open Interest Spike

November 4, 2023

MEM TV: New Uptrends Amid Sector Rotation!

June 10, 2023

DP Trading Room: Finding Pocks of Strength in Financials

August 7, 2023

Macro Market Outlook and Best Options Trade Ideas!

November 19, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,632 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    The Top Three Indicators Pressuring Earnings...

    October 5, 2023

    Why Sector Rotation Matters NOW! And...

    July 26, 2023

    The Ord Oracle October 10, 2023

    October 11, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here