Asia Morning: US Stocks Higher Despite Ugly Jobs Report
Ming Lam May 11, 2020 1:34 AM
On Friday U.S. stocks continued their rally despite a loss of over 20 million jobs and jobless rate soaring to 14.7%...
On Friday U.S. stocks continued their rally as the April jobs report was not as ugly as expected.
The Dow Jones Industrial Average advanced 455 points (+1.9%) to 24,331, the S&P 500 rose 48 points (+1.7%) to 2,929, and the Nasdaq 100 was up 118 points (+1.3%) to 9,220.
Souirce: GAIN Capital, TradingView
Automobiles & Components (+6.24%), Energy (+4.34%) and Consumer Durables & Apparel (+3.3%) sectors were market leaders.
Helmerich and Payne (HP +13.5%), News Corp (NWSA +13.3%), Noble Energy (NBL +13.2%) and United Airlines (UAL +11.7%) were top gainers.
Biotech firm Moderna (MRNA +11.4%) charged higher following a Thursday report of positive development of its experimental COVID-19 vaccine.
On the technical side, about 25.2% (25.0% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average, and 57.2% (46.5% in the prior session) were above their 20-day moving average.
The U.S. Labor Department reported that the economy shed 20.500 million Nonfarm Payrolls in April (-22.000 million expected) with the jobless rate soared to 14.7% (16.0% expected) from 4.4% in March. In fact, the U.S. economy had never lost over 2 million jobs in a single month, and the highest jobless rate on record is 24.9% marked in 1933.
European stocks remained on the upside, with the Stoxx Europe 600 Index adding 0.9%. Germany's DAX gained 1.4% and France's CAC was up 1.1%. The U.K.'s FTSE 100 was closed for a bank holiday.
U.S. Treasury prices eased, as the benchmark 10-year Treasury yield climbed to 0.679% from 0.630% Thursday.
Spot gold price lost 14 dollars or 0.8% to $1,700 an ounce.
Oil prices rebounded, achieving a two-week back-to-back increase. Traders kept expecting a recovery in oil demand. U.S. WTI crude oil futures (June) jumped 5.1% on day to $24.74 a barrel, and Brent crude oil futures were also up 5.1% to $30.97 a barrel.
On the forex front, the ICE U.S. Dollar Index slipped 0.1% on day to 99.73, as the April nonfarm payrolls report was not worse than expected.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.