October 4, 2024

Markets:

U.S. stock futures rallied on Friday after the all-important jobs data came in much stronger than economists expected.

Futures tied to the Dow Jones Industrial Average gained 201 points, or 0.5%. S&P 500 futures and Nasdaq 100 futures climbed 0.7% and 1%, respectively.

Nonfarm payrolls grew by 254,000 jobs in September, far outpacing the forecasted gain of 150,000 from economists polled by Dow Jones. The unemployment rate ticked down to 4.1% despite expectations for it to hold steady at 4.2%.

Friday’s premarket advances mark a turn after mounting geopolitical tensions in the Middle East gave way to a shaky start in October for the stock market. Friday’s report appeared to shift investor focus back to the outlook for the U.S. economy.

Crude prices rose another 1.6% on Friday, adding to the 5% jump seen in the previous day. Oil has been pushed higher as a result of intensifying conflict in the Middle East after Iran launched a missile attack on Israel. Week to date, the price has risen nearly 9%.

To be sure, one overhang has been removed after a closely watched port strike ended Thursday night, as the International Longshoremen’s Association and the United States Maritime Alliance reached a tentative agreement on wages. The parties also agreed to extend their existing contract into January to allow more time for further negotiations.

Portfolio:

In a matter of a day the headlines risk and narrative are completely gone once again! Nas is ripping this morning and the jobs report and we enter the session holding set-ups in APLD, TSLL, APA, and LUMN. We might add as the queue is igniting with force now. If this market does not excite you and the potential you have for the coming months to make so much money than I'm not sure what will. The greatest period has yet to begin, that will start after the elections. One more headline to get through. Be ready.

Trendlines to watch:

SPY 575 is next hurdle to the upside. We have downside line printed and higher lows continues.

QQQ 492 to the upside, downside line printed. Higher lows as we stated yesterday.