Asia Morning: US Stocks Higher Despite Ugly Jobs Report

On Friday U.S. stocks continued their rally despite a loss of over 20 million jobs and jobless rate soaring to 14.7%...

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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.

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