Stocks are higher Friday as investors digested both the latest corporate earnings and jobs report. A stronger than expected employment report has some questioning the timing of an anticipated first rate cut, though surprisingly, it did not concern investors it would appear. Domestic stocks are looking to break a 4-day losing streak this week.
For economic data today, nonfarm payrolls rose 253,000 in April, easily beating expectations of 180,000. The prior month was revised lower down to 165,000 from 236,000. The unemployment rate fell to 3.4%, tied for the lowest level since 1969, versus expectations of rising to 3.6%. Average hourly earnings were up 0.5% for the month, above expectations, and earnings were up 4.4% YoY, another unexpected increase over the prior reading.
Treasury yields are higher, with the 2-year T yield up 16.6 basis points to 3.89%, the 5-year T yield up 12.8 basis points to 3.40%, and the 10-year T yield up 8.3 basis points to 3.44%. The shortest-term advance rates are lower today, while the rest of the curve is higher.