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US Job Growth Beats Expectations And What That Means For You - Market Review

Published 08/04/2024, 16:15
Updated 08/04/2024, 17:40
© Reuters.  US Job Growth Beats Expectations And What That Means For You -  Market Review
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Benzinga - by The Traders Tribune, Benzinga Contributor.

Summary

  • Poor week for stocks
  • Jobs Report exceeds expectations
  • GE outperformed market downturns
The market had a rough trading week with the S&P dropping 1.02% and the Dow Jones dropping 2.27%. This downtrend is reflected in almost every stock. At the end of the trading day on Thursday the 4th, stocks took a huge downturn after the Minneapolis FED President, Neel Kashkari, said that the central bank may not cut interest rates at all; this is contradictory to what Simon Powell said a couple of weeks ago. However, stocks rallied at the end of the week with a great jobs report.

One stock that beat out the rest of the market was General Electric Co (NYSE: GE) (now GE Aerospace). Among the chaos that was in the market this week, GE grew 12.50%. GE Aerospace separated from parent General Electric, which relieved it of all the debt baggage that the other sectors of the company carried with it. This fact caused GE Aerospace to be more attractive to prospective investors. In the long term, there’s a lot of growth in store for GE Aerospace, causing us to be bullish on it.

On Friday 4/5/2024, the Bureau of Labor Statistics released their monthly jobs report. This report showed that employment increased by 303,000 in March, which decreased unemployment by 3.8%; this news completely beat out economists' expectations. This positive news is the biggest reason behind stocks rallying to finish up a turbulent week. However, this good news for our economy may give the FED another excuse to keep interest rates high. These two contrasting views on the economy make it hard to predict how this report will affect the markets in the upcoming week. We suggest waiting it out and seeing what happens in the next few trading days. The news of continued high interest rates can be taken two ways. On one side, keeping your money in a CD or other type of account is a good choice where the higher interest rates will give you a higher return on your deposit. On the other hand, it makes it a bad idea to apply for any loans right now. It would be a good idea to see what the FED has to say about interest rates next before deciding on whether you take out a loan.

Disclaimer:

The information provided in this article is for educational and informational purposes only. It is not intended to be, and should not be construed as, investment or financial advice.

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Readers should conduct their research and due diligence before making investment decisions. Past performance is not indicative of future results.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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