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Market Rips on Okay Jobs Report, Shake Shack Survives Fried Chicken Attack


Today's financial recap and tomorrow's financial outlook.

The S&P 500 spiked this morning on a disappointing, but not too disappointing, jobs report.

Nonfarm payrolls rose 223,000 in April, slightly missing the 228,000 consensus. Additionally, February and March's numbers were revised down by at total of 39,000.

The unemployment rate fell to 5.4% from 5.5%, in-line with expectations.

Average hourly earnings rose 2.2% year-over-year, just slightly below the expected 2.3% gain.

Despite the numbers missing expectations, markets were up sharply.

Investors viewed the data as not strong enough to support Fed rate hikes in the near future, but not bad enough to imply ecoomic problems.

Immediately following the release, S&P 500 futures rose sharply while US treasury yields and the US dollar fell.

All S&P 500 sectors finished up today, with the index up 1.3% to 2116.09.

The Russell 2000 underperformed today after outperforming two days in a row.

Biotech lead the way, with the SPDR S&P Biotech ETF (XBI) finishing up 3.0%. The Nasdaq Biotechnology ETF (IBB) was up 2.3%.

Cybersecurity also performed well. The Purefunds ISE Cyber Security ETF (HACK) rallied 2.2%. The Department of Justice reported attempted cyberattacks on energy grids.

Real estate, aerospace, and health care also performed well.

Most of this morning's major pre-market earnings announcers peformed well today.

AOL (AOL) shares finished up 10.2% after the company reported better than expected earnings and revenues.

CST Brands (CST) fell 3.0% after reporting misses on both EPS and revenues.

Yelp (YELP) finished up 6.2% as the market was still digesting rumors that the company may be taken over. Shares soared 23% yesterday on the initial chatter.

Shake Shack (SHAK) finished up after shares took a dramatic dip from $79.50 Wednesday to $61.50 this morning. Some speculated that traders were taking profits to put money to work in today's IPO of fried chicken chain Bojangles (BOJA). Shack Shack posted an impressive comeabck, finishing up 3.0% at $68.00.

European stocks rallied after British Prime Minister David Cameron won a majority in yesterday's election. The british pound soared against the euro and the dollar, and Britain's FTSE 100 index jumped 2.3%. France's CAC 40 finished up 2.5%, and Germany's DAX gained 2.7%.

Asian markets were also up.

Monday's Financial Outllook

In US economic news, Labor Market Conditions Index Change for April will be announced.

Overseas, the Bank of England will be annoucing its Rate Decision and Asset Purchase Target, and Australia will be annoucing Home Loans. 

For Monday's pre-market earnings reports, we have Mobileye (MBLY), Actavis (ACT), AerCap (AER), AES (AES), Centerpoint (CNP), Dean Foods (DF), and DISH Networks (DISH). After the close, Diplomat Pharmacy (DPLO), MBIA (MBI), McDermott (MDI), MasTec (MTZ), and Stifel Financial (SF) will be reporting.
No positions in stocks mentioned.
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