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06012019

Wall St. rebounds on robust jobs report, dovish Powell remarks

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At the session symbolizing increased volatility, which swept the markets for several weeks, all three major US stock indexes rose by more than 3 percent in one of the most significant gains in recent years. The profit more than wiped out the losses of the previous session and was due to the technology sector, which rebounded from its largest one-day decline in the last seven years after Apple Inc. (AAPL.O) cut its sales forecast.

Since Christmas’s 20-month low, on the eve of Christmas, due to rounding errors, which are considered to be a bear market, the S & P 500 .SPX index has grown by 7.7%. Friday's advance, measured by the number of stocks rising against falling, was the largest in eight years.
The main catalysts for growth were the monthly wage report in the United States, which surpassed economists' estimates, according to which the largest number of jobs was created in 10 months, and the comments of the Fed Powell.

In comments to the American Economic Association, Powell reassured market nerves with assurances that the central bank is sensitive to the risks that worry investors, and is not on a given path of raising interest rates.

Speaking after months of instability in the global bond and equity markets, Powell avoided some communication errors that worried rather than reassured investors in the past. He also promised to stay in his post, even if asked by President Donald Trump, who repeatedly scolded the person he appointed to work, for repeated increases in the Fed rate.
"(Powell) says the right thing: that the Fed is ready to change, that it listens carefully, that it is sensitive to the messages that the market sends,” said James Eti, senior investment manager at Aberdeen Standard Investments in London. "This is good news for a market that is beginning to absorb itself out of fear."

However, others have warned that the rollercoaster ride this week could be a new norm.

"Despite the fact that today such days seem good, we still foresee further economic weakness and expect the market to continue to grow," said Eric Friedman, investment director at the American bank Wealth Management in Minneapolis.

News that China and the United States will hold trade talks in Beijing next week helped tariff-vulnerable industrial leaders lead the Dow rally, led by Caterpillar Inc. (CAT.N), United Technologies Corp (UTX.N), 3M Co ( MMM.N). ) and Boeing Co (BA.N).
The Dow Jones Industrial Average .DJI rose 746.94 points, or 3.29 percent, to 23.433.16, the S & P 500 .SPX added 84.05 points, or 3.43 percent, to 2.531.94, and The Nasdaq Composite .IXIC index added 275.35 points, or 4.26 percent, to 6,738.86.

All 11 major sectors of the S & P 500 ended the session in positive territory: technology, communication services .SPLRCL, materials .SPLRCM and industrial shares .SPLRCI showed the largest percentage increase.

Apple shares rose 4.3 percent and led to an increase in the technical sector, as the company began to recover positions lost after a warning about a decrease in revenue in the holiday quarter on Wednesday.

Each of the FAANG impulse promotions, a group that includes Facebook Inc (FB.O), Apple, Amazon.com Inc (AMZN.O), Netflix Inc (NFLX.O) and the parent company Google Alphabet Inc (GOOGL.O), traded above.

Netflix jumped 9.7 percent after Goldman Sachs added streaming service to its "belief list.”

The number of advanced issues exceeded the number of recessions on the NYSE at a ratio of 7.64 to 1; on the Nasdaq, a ratio of 6.22 to 1 favored advancement.

The S & P 500 did not publish new 52-week highs and 1 new minimum; The Nasdaq Composite has recorded 5 new highs and 19 new lows.

Volume on US exchanges was 8.68 billion Shares compared with an average of 9.14 billion. Over the past 20 trading days.



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