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Wall Street Opens Mostly Higher as Job Shock Banishes Tapering Fears; Dow Flat

Stock MarketsMay 07, 2021 09:41AM ET
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© Reuters

By Geoffrey Smitth 

Investing.com -- U.S. stock markets opened mostly higher on Friday thanks to the "bad news is good news principle", as a shock shortfall in job creating reassured market participants that the Federal Reserve will not withdraw any monetary stimulus for the foreseeable future. 

By 9:40 AM ET (1340 GMT), the Dow Jones Industrial Average was effectively unchanged on 34,552 points, underperforming as the government's labor market report suggested that only a slow pickup in employment despite the broad reopening of the economy. The S&P 500 was up 0.4%, and the Nasdaq Composite, many of whose components are highly sensitive to expectations of future interest rates, was up 0.8%.

Earlier, the Bureau of Labor Statistics had said that the U.S. economy created only 266,000 nonfarm jobs in the month through mid-April, well short of the 978,000 expected and also well short of the 742,000 gain in private payrolls reported earlier this week by ADP. To make matters worse, the government also revised down its March number by nearly 150,000 to 770,000. The one bright spot was a sign of people re-entering the workforce as the service sector started to reopen after a winter spent locked down. The labor participation rate rose to 61.7% of the working-age population, from 61.5% in March.

Among individual stocks, Roku  (NASDAQ:ROKU) was an early and sharp gainer,. after the maker of streaming devices posted strong quarterly results on Thursday evening. After losing 40% from its peak in February, the stock rebounded by 15% after the company said advertising revenue grew 79% in the first quarter, giving the company its strongest overall revenue growth since it went public.

Peloton (NASDAQ:PTON) stock rose 4.6% after the maker of high-end exercise bikes said the recall of its treadmills due to safety concerns would cost it only $165 million. The stock has been hammered this week by the recall news, which came after the company initially refused to acknowledge a problem with the equipment.

Elsewhere, Square (NYSE:SQ) stock rose 7.6% after disclosing a sharp rise in the proportion of its revenues tied to processing Bitcoin-related payments. The news attracted inflows from people seeking an equity market proxy for the growing interest in crypto assets. Coinbase Global (NASDAQ:COIN), the digital asset exchange group seen by some as the closest proxy for that trend,. bounced 2.0% after finding support just above the reference price at which it went public last month.

Wall Street Opens Mostly Higher as Job Shock Banishes Tapering Fears; Dow Flat
 

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Comments (19)
Adam Paine
Adam Paine May 09, 2021 11:58PM ET
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The markets are sick
Nicholas J Loveless
Nicholas J Loveless May 07, 2021 6:52PM ET
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“Banishes tapering fears”.... Missed by +700k.
Adam Paine
Adam Paine May 07, 2021 12:02PM ET
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The FED broke the markets. Powell will be the scape goat when this comes crashing down. Hence us gulping and sweating at every FOMC talk. He's scared of the monster he's created. Not good.
Adam Paine
Adam Paine May 07, 2021 12:02PM ET
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*his
Steve Lora
Steve Lora May 07, 2021 11:28AM ET
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Biden jobs only missed by 700,000 lol
Nicholas J Loveless
Nicholas J Loveless May 07, 2021 11:28AM ET
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ONLY?!
Larry DeAngelis
Larry DeAngelis May 07, 2021 11:28AM ET
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It would have been interesting to see how much the market would have gone up if the report showed 1.5. CNBC has there cheerleaders say everything is bullish. Ponzi scheme! Maduff was an amateur
Jouni Matero
Jouni Matero May 07, 2021 11:15AM ET
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Futures go up expecting some specific good news and when the expected news are Totally disappointing, analysts twist the news to be good news. Whatever is only good news in this carneval fake market.
Paul Richard
Paul Richard May 07, 2021 11:06AM ET
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whoomp there it is. haters in here are going to post about ponzie scheme soon.
Paul Richard
Paul Richard May 07, 2021 11:06AM ET
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between stocks and real estate be doing smack
Steffen vdm
Steffen vdm May 07, 2021 11:06AM ET
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This is all one big Ponzie scheme! Come on everybody, repeat after me
UK DAS
UK DAS May 07, 2021 10:44AM ET
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Any news is good news
St Af
St Af May 07, 2021 10:36AM ET
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Bad Covid21 news out of India. Those who stay alive to reap the benefits of government giving.
Corrupt Fed
Corrupt Fed May 07, 2021 10:32AM ET
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Yep now they throw it in our faces. No jobs is actually good for the economy now people...What upside down world are we living in? If this report came out in the 80's we'd be heading to all time lows, not all time highs. Federal Reserve is a joke, should be abolished, and Epstein didn't kill himself.
Arul Alagan
Arul Alagan May 07, 2021 10:32AM ET
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TRUE ?.... Very Well Said... God Only Knew Where The Fake Market Will End... Now A Days I Got Fear To Invest In Stock Market
John Klan
John Klan May 07, 2021 10:32AM ET
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no it's good for stocks especially tech stocks because it keeps interest rates from being raised any time soon. As for the economy, being 30 TRILLION in debt is pretty much going to do us in anyhow in the long run.
adam vandervelde
adam vandervelde May 07, 2021 10:32AM ET
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no it is a short term stat. the estimate was also wrong. nonsense.
Corrupt Fed
Corrupt Fed May 07, 2021 10:32AM ET
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Look at the overall trend. We are still at peak 2008 unemployment levels...and that was labeled the great recession...that was "saved" by ever increasing stimulus...not growth. The federal reserve is corrupt and they are breaking our nation!
Johnny Ancich
Johnny Ancich May 07, 2021 10:30AM ET
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Funny how it is called job 'growth' when it is just getting back to pre-pandemic levels (which we probably are not even close to)
Ankit Agrawal
Ankit Agrawal May 07, 2021 10:29AM ET
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Am i reading it right? Market is happy that jobs are not being created because hey, free money available now!
Kevin McCarthy
Kevin McCarthy May 07, 2021 10:24AM ET
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banishes fear of tapering, but increases need of tapering significantly.. almost ridiculous the propaganda people push these days.
Jose Mibaresh
Jose Mibaresh May 07, 2021 10:14AM ET
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What good are new jobs when the unemployed sit home getting government stimulus checks?
Laurentiu Banu
Laurentiu Banu May 07, 2021 10:11AM ET
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Wow..what good news for the market it seems..everything is upppp
Tom Car
Tom Car May 07, 2021 9:59AM ET
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Come on goverment. Stop those federal extra unemployment benefits and send those lazy sitting at home to work. Millions of job opening everywhere that companies can not fill. State benefits still will be there for those that actually can not work
Glenn Ebersole
Glenn Ebersole May 07, 2021 9:59AM ET
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Irrational exuberance for sure, right when needed.
Oliver Barasa
Oliver Barasa May 07, 2021 9:52AM ET
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I think the manufacture of alcohol brings alot of income in kenya
Aw wright
AndrewJW May 07, 2021 9:48AM ET
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if you think a few Job numbers outweigh growth and performance of Manufacturing etc; then continue to live deluded that they won't begin Taper Talks. There is a huge fundamental compartmentalization of Weak USD vs Cheap USD. FYI, don't believe the Media narrative peddling this drivel, earlier today, this site announced Credit Suisse calling GBPUSD 1.51, I've many friends on theirFX desk and nobody is calling North, aggressively South 1.25..
vaibhav sharma
vaibhav sharma May 07, 2021 9:44AM ET
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Easy money, bring it on
Oliver Barasa
Oliver Barasa May 07, 2021 9:44AM ET
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Per month, it brings 1 million.
 
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