Stocks make new highs – Here’s what traders are focusing on right now…

Stock Market Update Sunday, April 7th, 2019

Helped out by a strong Jobs Report, stocks were up again on Friday, 

With Friday’s gains, the S&P closed higher for the 7th day straight! This is the longest win streak since 2017.

The DOW joined the party as well.

The blue-chip index has been held back over the last few weeks because of losses in Boeing (BA). But with Friday’s gains, the DOW joined the S&P and NASDAQ at new highs for the year.

Here’s what traders were focused on last week:

  • The March Jobs Report – Friday’s report showed Average Hourly Earnings up 0.1% (vs. 0.3% forecast), Non-Farm Employment adding 196k jobs added (vs. a 172k forecast), and the Unemployment Rate unchanged at 3.8%.

    After February’s disappointing report, this was a big win for traders. Not only does the better than expected non-farm addition show that we have strong job market, the lower than expected average hourly earnings number shows that inflation is under control (inflation rising is a concern for the Fed and can lead to rate hikes).

  • Trade Hopes – Vice Premier Liu He was in the U.S. last week working on a trade deal. And although there’s still room for negotiations, it sounds like the meeting was positive.

    According to Xinhua, an official state news agency, “new consensus had been reached by both countries on the text of a trade agreement.” But President Trump made it clear that there’s still some time to iron things out. Trump said “we’ll know over the next four weeks” if there will be a deal.

Here’s where the major indices ended the week:

  • The S&P finished with a 2.1% gain. Up 58 points, the S&P ended at 2,893.
  • The DOW ended higher by 1.9%. Adding 496 points, the DOW closed at 26,425.
  • The NASDAQ was up 2.7%. With a 209 point gain, the NASDAQ finished at 7,939.

Crude Oil (CL) finished above the $63 mark for the first time since early November. Up 4.8%, CL ended at $63.10 a barrel. 

Boeing (BA) and Lyft (LYFT) remained in the spotlight last week. And for good reason.

On Thursday, Boeing (BA) closed at its best level since the day after the 737 MAX crash in Ethiopia. Traders were optimistic after initial tests of a software upgrade.

But Boeing was down 1.0% on Friday, and it could be a rocky Monday for the stock. In after-hours trading, Boeing was down 4.0% after the company announced it was cutting production of their 737 MAX planes by 20%.

Early in the week, Lyft (LYFT) was trading well below its IPO price of $72 a share, hitting $66.10 on Tuesday. But the stock was trading at $74.45 a share by the end of the week. 

This upcoming week earnings will be back in the spotlight, with some big banks reporting. JP Morgan Chase (JPM) and Wells Fargo Bank (WFC) are set to report on Friday.

Here is the economic calendar for the week:

Real Time Economic Calendar provided by Investing.com.

This Stock Market Update was provided by Rockwell Trading Services LLC.

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