U.S. stocks have continued to rally after the release of April non-farm payrolls showed a better-than-expected increase of 165,000 jobs. The increase, coupled with higher revisions for February and March and a tick down in the unemployment rate to 7.5%, helped sentiment that the economy could continue to improve. As a result, the market has cheered the news, hitting new intra-day highs. The PHLX HOUSING SECTOR INDEX (HGX) rose 4.4% over the past 5 days and is up 18.2% year-to-date.
"The jobs number, coupled with increases in housing values, continues to add to market confidence that economic conditions are improving. These factors added to the Fed's free money policy are combining to power the market to all-time highs," said Dave Gedeon, Managing Director, NASDAQ OMX Global Indexes. "Given these highs, the baton seems to be getting passed from defensive names like utilities to consumer discretionary, industrial and energy names. Oil and copper also moved higher as the possibility of growth gets priced in, but in general commodities were mixed to weaker."
TOP WEEKLY INDEX MOVERS (+ / -)
TOP 5 EQUITY INDEXES:
PHLX HOUSING SECTOR
PHLX OIL SERVICE
NASDAQ EM EUROPE
PHLX DEFENSE SECTOR
TOP 5 COMMODITY
Other Notable Index Moves This Week
- Investors will be watching Initial Jobless Claims and Continuing Claims data Thursday for a confirmation of the optimism generated by the Payrolls data. Watch the NASDAQ-100 Index® (NDX), post announcement for a broad view of larger, non-financial names.
- March Consumer Credit rose less than expected yesterday. This number is notably volatile. Still, a future confirmation of slower credit card borrowing could be an indicator of constraints due to payroll tax increases and low income growth. The NASDAQ US Large Cap Retail Index (NQUSL5300) might be an indicator of a broad market move.
- Merchant Wholesale Inventories will be out Friday. Watch the NASDAQ Commodity Industrial Metals ER Index (NQCIIMER) for any early indications of inventory re-stocking.