Stock prices rise following February employment statistics

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Stocks rose after Friday’s February jobs report showed an increase in the unemployment rate, boosting investor confidence that the U.S. Federal Reserve will cut interest rates after its June meeting.

The S&P 500 (^GSPC) rose 0.2% after setting a new record close on Thursday, while the Dow Jones Industrial Average (^DJI) was flat. The tech-heavy Nasdaq Composite Index (^IXIC) rose 0.3% following the previous day’s sharp rise.

Friday’s nonfarm payrolls report showed the U.S. economy added 275,000 jobs in February, again well ahead of Wall Street expectations. However, the unemployment rate rose to 3.9%, the first increase in four months. Ahead of the employment report, futures prices for the three major averages were trading in the red.

This week, Chairman Jerome Powell told lawmakers it is “not long” before the Fed is confident that inflation is in the right conditions for the central bank to start lowering borrowing costs. The market was pushed up.

With inflation falling faster than expected, European Central Bank policymakers lined up to support interest rate cuts ahead of the summer break, showing the wind is blowing elsewhere. Meanwhile, Bank of Japan officials are said to be open to the idea of eventually raising interest rates from negative territory.

On the corporate side, Costco (COST) shares fell 5%, overshadowed by quarterly sales growth that outpaced profits. Broadcom (AVGO) failed to impress investors after sales exceeded expectations for $10 billion in AI-related chip sales, sending its stock down more than 2%.

In the commodity market, gold futures (GC=F) continued to rise as spot gold prices aimed for their biggest weekly gain in five months amid optimism about a mid-year Fed rate cut.

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Friday, March 8, 2024, 8:59 PM GMT+5:30

Stock prices rise in morning trading

Below are some of the stocks that topped Yahoo Finance’s trend ticker page during Friday morning trading.

Rivian (Riven): The all-electric vehicle company rose 6% in morning trading after announcing two new low-cost SUVs. The first of his two cars is a midsize SUV called the R2, priced from about $45,000, which Rivian says he plans to ship in the first half of 2026. The move, similar to Tesla’s Model 3, is aimed at attracting a broader consumer base.

Costco (Fee): The company’s stock price fell sharply on Friday after the company reported mixed second-quarter results.

Gap (GPS): Clothing companies rose 3% on Friday after reporting fourth-quarter profits that beat expectations on both sales and bottom line. The latest quarterly results were released about six months after CEO Richard Dixon was appointed with the mission of turning the company around.

Broadcom (AVGO): Shares of the semiconductor maker fell 3% after reporting first-quarter results that beat analysts’ expectations for both sales and bottom line. However, the news was not as explosive as many investors had expected, and the stock price fell slightly.
Friday, March 8, 2024, 8:06 PM (GMT+5:30)

Stocks heading for a strong week after employment report

Wall Street traded on a positive note today, with stock prices rising after the February employment report showed an increase in the unemployment rate. A slightly weaker job market has strengthened the case for the Federal Reserve to cut interest rates this summer, increasing investor optimism.

The S&P 500 (^GSPC) rose 0.2%, while the Dow Jones Industrial Average (^DJI) was flat. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, rose 0.3%.
Friday, March 8, 2024, 6:00 PM GMT+5:30

Costco is Costco

Costco (COST) is Costco and has historically performed very well for investors.

The company sells $1.50 giant hot dogs in its food court (and they’re super tasty, as you can see in this 2022 photo with outgoing CEO Craig Jelinek). In the most recent quarter, online sales rose 18% due to demand for gold bars. To my surprise, I found (and bought) two tomahawk steaks at my local Costco for $40 (about 5 pounds of meat) a few weeks ago.

Costco just does things differently, and it’s in its DNA. The stock price has increased by +245% over the past five years as members are happy with their purchases.

So I wasn’t surprised when Costco’s longtime CFO, Richard Galanti (who will soon be retiring), announced during last night’s earnings call that the company is getting into the sushi business.

“We recently opened our first fully-operated sushi restaurant in Issaquah, Washington, across the street from our headquarters, and we plan to open two more locations in the near future. It has been successful for many years.”

Sign me up for a California roll, Rich.

I recommend Costco’s hot dogs. On the right is now retired Costco CEO Craig Jelinek. (Yahoo Finance)