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Stocks held on to their gains Thursday, rallying ahead of the April jobs report. The 10-year Treasury yield fell to 4.569% and the 2-year fell to 4.875%. Peloton stock dropped after it announced layoffs and said its CEO was stepping down. And Carvana is in the midst of a turnaround, with shares rallying more than 1,000% over the past 12 months. After the bell, Apple reports earnings. It could be a little dicey.Key Events
The S&P 500 held on and closed higher Thursday ahead of a key employment report and Apple's earnings.
The Dow Jones Industrial Average was up 322 points, or 0.9%. The S&P 500 was up 0.9%. The Nasdaq Composite was up 1.5%.
The 2-year Treasury yield fell to 4.889% while the 10-year yield was down to 4.58%.
"Powell and short covering have gotten us to resistance on the 2 year at 4.875... 5 year and 10 years are at new low yields for the week," writes Andrew Brenner, head of international fixed income at NatAlliance Securities. "But we sense we will need more to keep this rally going."
Bond yields retreated and stocks rallied after Federal Reserve Chair Jerome Powell sparked renewed optimism the Federal Reserve will be able to cut interest rates this year, even if it takes longer than traders had hoped back in January.
Odds of at least one interest rate cut through September were up to 61.3% from 54% on Wednesday, according to the CME FedWatch Tool.
Friday's jobs report will be a major test for such hopes. Apple's earnings are also imminent, which could sway markets on Friday given the stock's weight in the S&P 500 and what its results say about the global economy.
For now though, market observers will celebrate the big indexes holding onto gains. The S&P 500 had fallen 0.6% in the final ten minutes of Tuesday and Wednesday's sessions. It also closed lower after opening higher seven times in April.
By
Anthony Harrup, Dow Jones Newswires
Oil futures struggle to recover from the previous session's selloff, with Brent edging higher and WTI ending the day lower.
Friday's payrolls report "will likely determine how the complex finishes this week," Ritterbusch says in a note.
The U.S. employment report rounds out a bearish week for oil in which the Fed confirmed it could take longer to cut interest rates, and the EIA reported a surprisingly large build in U.S. crude stocks that raised concerns about demand with a month to go before the summer driving season.
WTI settles down 0.1% at $78.95 a barrel, and Brent rises 0.3% to $83.67.
By
Kirk Maltais, Dow Jones Newswires
SPDR Gold shares to fall 0.3% as traders continue to mull Fed chairman Powell's rejection of any possibility of new rate hikes while indicating that cuts were not imminent.
Underlying front-month gold futures slip less than 0.1% to $2,299 per troy ounce.
Investors are looking toward tomorrow's jobs report to get updated on the current status of the economy, which affects demand for precious metals as a safe financial haven.
"I suppose if the jobs data were to fall off aggressively tomorrow, sparking genuine fears of stagflation, then another increase would be in the cards," Robert Yawger of Mizuho Securities USA says in a note.
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