Wall Street markets are pricing for perfection after record-setting day

4 minutes
Wall Street markets are pricing for perfection after record-setting day

Stock futures rose Friday morning after a record-setting day on Wall Street, poised to add to the market gains after data revealed the U.S. economy created 916,000 jobs last month.

The U.S. stock market will not take place on Friday in observance of the Good Friday holiday, and equity futures trading will close 9:15 am. However, investors are likely to take heart from the weekly jobs report on Monday, which gave a massive hint that economic rebound is about to regain momentum even before massive fiscal stimulus takes root. Payrolls have blown the consensus estimate of 916,000 jobs and the highest since August. The new unemployment rate edged downwards by 0.2 percentage points to a new pandemic-era low of 6.0%.

While we still have a long way to go to repair the damage that was done to economy last year, we 're making good progress, Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance, said in an email Friday morning. The improving economy will increase consumer spending and that coupled with the twin tailwinds of continued monetary and fiscal stimulus is what is going to propel the stock market higher this year.

Contracts on the S& P 500 closed higher on Thursday after the index opened for the first time at 4,000. Technology stocks led the gains, and Nasdaq pushed out with a gain of 1.8% during the session.

What is happening is markets are pricing for perfection right now. And when I say perfection, perfection in the sense that we 're going to have a smooth reopening of the economy and that we are going to have some hiccups, Kevin Nicholson, Global Fixed Income co-chief investment officer at Yahoo Finance, told the chamber of commerce. But I think that the second quarter earnings are going to be good, and it is set up that there's momentum going into the first quarter.

Despite the recent rotation into cyclical and value stocks with small caps as well as the energy, financial and industrial sectors outperforming for the year to date, Big Tech stocks were in fact the biggest contributor to the blue-chip index's recent milestone. According to an analysis by S& P Dow Jones Indices, Amazon and Alphabet contributed 43.8% of the latest 1,000-point gain in the S& P 500. And Thursday's tech-led session could be a harbinger of corporate trends in the stock market, according to Chris Konstantinos, RiverFront chief investment strategist.

I think Q 2 is going to be driven more by corporate earnings and less by some sort of deep mean reversion in valuation multiples off positives, Konstantinos told Yahoo Finance. So what we 're recommending is a barbell of cyclical growth stories and some value and secular plays, but not going whole-hog into cyclicals because we believe that a big part of this move already happened.

Tesla made first-quarter deliveries that easily exceeded consensus expectations, building momentum after the electric car maker handed over a record number of vehicles in 2020.

In the first three months of 2020, the deliveries totaled 184,800. According to data from Refinitiv, this exceeded consensus expectations for 177,822 vehicles. It has also more than doubled the 88,400 vehicles that the company delivered in the same quarter last year.

Lets be clear, with chip shortages and related production issues the street was thinking a 160 k -- 165 k numbers in the cards with this quarter a massive home run in the eyes of the bulls, Wedbush analyst Dan Ives wrote in a Friday morning note. We believe China and Europe were particularly robust in this quarter as the trajectory puts Musk Co. to reach 850 k for the year, which is well ahead of the whisper expectations. With a green tidal wave which started off with Biden in the US this week, and global EV demand going after a$ 5 trillion TAM total addressable market over the next decade, we think these delivery numbers are a paradigm and sentiment shifter for the space going forward.

Futures have gains after employment data is published. 7: 16 a.m.

ET: Futures trade higher, and hold on to overnight gains Stock futures drop as the 7 day session starts. 6: 00 p.m.

ET Thursday: Stock prices rise and close as stocks sell overnight Emily McCormick is a reporter for Yahoo Finance and you can follow her on Twitter: emily mcck. Charlie Munger on Robinhood and GameStop frenzy: It's a dirty way to make money' None says Amazon has one thing that Charlie Munger does n't have.

None of the labor market weakness could last 'for several years' in pandemic's aftermath: economists None Credit Suisse boosts S& P 500 price target to 4,200 by 2021 with more stimulus expected What happened in the economy in 2020? None These jobs may disappear in the face of automation.

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