Stocks rise as disappointing jobs report fuels hopes of a Fed rate cut

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Stocks post gains as investors wager rate cut is likelier after weak jobs report

U.S. stocks rose modestly Friday, following a weaker-than-expected jobs report, which supports the case for the Federal Reserve to ease interest rates in the near future, amid fears that the U.S. economy is decelerating as trade tensions between the U.S. and counterparts Mexico and China persist.

For the week, the Dow is set to gain 3.7%, which would be the best weekly gain since the period ended Nov. 30, according to FactSet data as of Thursday’s close. The S&P 500 looks likely to return 3.3 % for the week, which would also represent its best such gain since November, while the Nasdaq was set for a weekly climb of 2.2%, its best weekly gain since March.

While stock index-futures initially sold off on the news, markets could be entering a period in which bad economic news is good for stock markets, analysts said, as it would increase the chances that the Federal Reserve would move to lower interest rates in the coming months. Mexico has also emphasized the need for more U.S. economic aid to potentially subsidize Mexican interdiction efforts, and to support economic development in migrants’ home countries. It remains to be seen, however, whether a deal can be reached in time to avoid the imposition of a 5% tariff on all Mexican imports, set to go into effect Monday. Talks are set to resume Friday.

What are the analysts saying? “This is the type of [jobs report] the doves will really take to, as it supports the argument for cutting rates beyond politics or trade issues, which were never part of the Fed’s mandate to begin with,” Mike Loewengart, vice president of investment strategy at E-Trade wrote in an email.

Which stocks are in focus? Barnes & Noble Inc. BKS, +10.99% shares could be in focus Friday, after a report in the Wall Street Journal indicated the bookseller is nearing a deal to be bought by hedge fund Elliot Management Corp. The stock rose 10.8% Friday

 

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Thanks to short selling any news is an excuse for market activity. Wild swings up & down do not help the average retiree or saver. This nonsense only benefits a few. More presidential candidates will sign on for a tax on micro trades like other EU nations have.

That patient is sick and going to the doctor, but that just means he's healthy. lol

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