How markets digested hot jobs print: Top takeaways

As the trading week draws to a close, Yahoo Finance’s Alexandra Canal breaks down the top three takeaways of the week, including stock market reactions to a hot jobs print, stocks hovering at record-high levels, and GameStop’s (GME) continued decline.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Angel Smith

Video Transcript

All of our major averages lock in a winning week as investors digest a stronger than expected jobs report.

And joining us now with our top takeaways from the trading day, let’s bring in Yahoo, finance reporter, senior reporter Alexandra Canal and uh you were there at 8:30 a.m.

So was I it was a, it was an eon ago.

Oh, yes.

I know.

I felt like a lot has happened since then, but you said it Right Jobs Day in America.

And that really dominated the story for markets.

We saw jobs come in much stronger than expected.

The unemployment taking higher at 4%.

And if we pull up an intra day chart, it seems like the markets really struggled to figure out how exactly to play this throughout the day, we saw a lot of volatility.

Exactly.

And a lot of this comes from the fact that right cut expectations are changing.

Now after this rank came, we still have most traders expecting a rate cut to come in September.

But the odds are less than what we got before this hot print.

So, so that’s something that investors, it’s top of mind for traders moving forward.

At the same time, some economists have come out and look at the end of the day, this shows underlying strength when you think about the economy at large as well as the labor market.

But I want to take a look at some other areas of the market that we saw move on the heels of this jobs report.

One is the small cap ending in the red for the week to I.

Right.

Right.

And if you take a look at, let’s look at the three month, the longer term.

So we’ve seen the small cap index remain really under pressure as we’ve gotten this higher for mantra from the fed.

And then if we take a look at a shorter term, you’ll see after that jobs report a lot, a lot of struggling there with small caps.

And then I also want to talk about the 10 year treasury yield move today crazy 15 basis points higher just around 4.43% under that critical 4.5% level.

So various moves here based on that report.

All right.

What is your next take away?

We’ve been watching a lot of things here today.

I don’t think it’s for me stocks yet, either the next one.

Ok.

Here we go.

So records j you know, they’re hovering at records.

I lost track of that for exactly the S and P was so close to noting another record there fell a bit short, obviously, the S and P, it’s been increased by those large cut names and video hitting the $3 trillion mark.

Story continues

But it’s sort of speaks to this narrative that perhaps we don’t need the fed to cut rates in order to see this resiliency and stocks.

And I love this chart.

It’s facts that earnings growth, robust earnings growth that’s been keeping this market elevated and the estimates as we had deeper into the year, they’re expected to remain elevated.

So that has been very encouraging for strategists as well.

Yeah, it’s been, it’s been nice to see us kind of climbing out of this earnings recession.

Much different from a regular recession.

All right.

Now, I think it’s time for me.

All right.

Deep t game stop.

All right.

The return of Ro Kit, he returned to the live street format the first time we all watched it, he was a little late to the party, but when he did finally show up, he was in front of a live chart from Yahoo Finance, which was really fun to see exactly right there.

Now he spoke.

It wasn’t, I don’t know what your thoughts were.

Well, you know, I think he was very conservative.

He was giving more risk disclosures than I was used to.

But I mean, I think the whole thing boiled down to trust Ryan Cohen except, except we don’t know what Ryan Cohen is thinking yet.

So, I don’t know.

I don’t know if the best buy and, or excuse me, bed bath and beyond shareholders.

Like what Ryan Cohen did with that company, you know, who knows what’s going to, what we’re going to say a year or two from now.

But he did make his return.

Exactly.

But look at the stock move.

Right.

We closed down 40%.

Let’s see what we are.

17 volatility halts.

Exactly.

That was only today, by the way, and look at, look at these wild swings that we saw just throughout the past five days.

We do know that gamestop file too.

Sell another stuff.

You put a five year chart down there and then we’ll see, we’ll see the initial ones.

What’s interesting to me is we have this kind of lower highs here and diminishing returns for all these new uh meme stock revivals and then this one right here, that’s a trend break.

So, you know, you have a higher high, that’s indicative of a trend chain.

Are we going to see a higher, higher than that?

I think that’s gonna be the big call here.

And will he keep coming back for those live streams?

I hope so.

Just try to be on time, please.

Exactly.