Stocks Accelerate Gains Ahead of Jobs Report and Fed Comments

Barry Adams
06 Mar, 2023
New York City

Stocks advanced in morning trading ahead of the release of economic data on employment and comments from the Federal Reserve. 

Economic reports on the U.S. labor market and jobless rate survey are expected to impact market sentiment later in the week. 

Federal Reserve Chairman Jerome Powell is scheduled to offer his views to congressional lawmakers and investors on Tuesday and Wednesday. 

The U.S. Labor Department is scheduled to release the February jobs report on Friday and economists polled by Ticker.com are estimating net payroll additions between 265,000 and 295,000. 

January's payrolls increase by 517,000 is viewed by most economists as an anomaly, despite the tight labor market conditions. 

The U.S. labor market is expected to add less than 260,000 jobs a month, slower than 401,000 in 2022 and 600,000 in 2021.     

Investors are looking ahead to the release of the Euro Area GDP data and comments from the European Central Bank policymakers. 

Crude oil traded with a downward bias after China forecasted a modest increase in economic growth in 2023.  

New orders for manufactured goods in January fell $8.9 billion or 1.6% to $542.8 billion, following the downwardly revised 1.7% rise, the U.S. Census Bureau reported Monday. 

New orders declined in two of the last three months but shipments declined for the third month in a row in January by 0.7% following the fall by 0.6%.  

 

China Sets Modest Economic Growth Target In 2023 

China lowered its economic growth target in 2023 to 5% after missing the 5.5% in the previous year. 

China's economy expanded at 3.3% in 2022 and is likely to advance at a slower pace on the weak export growth and falling property prices.  

Outgoing Premier Li Keqiang announced the target rate at the annual legislative conference on Sunday and the party officials focused on reviving growth through other measures.

 

Indexes & Yields 

The S&P 500 index increased 0.7% to 4,072.31 and the Nasdaq Composite index added 1.0% to 11,805.63. 

The yield on 2-year Treasury notes edged lower to 4.88%, 10-year Treasury notes to 3.96% and 30-year Treasury bonds eased to 3.88%. 

Crude oil increased 55 cents to $80.21 a barrel and natural gas eased 39 cents to $2.60 a thermal unit. 

 

Stock Movers 

Snap Inc gained 13% to $12.03 as the U.S. lawmakers make progress in advancing a bill to provide an authority to President Joe Biden in banning TikTok, the company's main competitor. 

Credit Suisse declined 0.7% to $3.01 after the company's main shareholder Harris Associates sold its entire stake in the company. 

The news was first reported by the Financial Times and independently verified by Ticker.com. 

Chicago-based Harris Associates reportedly owned as much as 10% last year but sold its entire stake in the last two months. 

"There is a question about the future of the franchise. There have been large outflows from wealth management," deputy chair and chief investment officer David Hero said to Financial Times. 

Ciena Corporation rose 4% to $51.14 after the networking equipment maker reported revenue in the last quarter increased 25.1% to $1.06 billion from $844.44 million a year ago. 

Net income increased to $76.24 million or $0.51 per share from $45.82 million or $0.29 per share in the prior-year quarter.