Stocks climbed higher on Friday after the February jobs report showed an uptick in the unemployment rate and bolstered investor confidence that the Federal Reserve will cut rates following its June meeting.
The S&P 500 (^GSPC) rose 0.2% on the heels of another record close logged Thursday, while the Dow Jones Industrial Average (^DJI) was flat. The tech-heavy Nasdaq 100 (^NDX) gaines 0.3% after a sharp gain Thursday.
Friday’s non-farm payrolls report showed the US economy added 275,000 jobs in February, once again zooming past Wall Street expectations. However, the unemployment rate ticked up to 3.9%, its first increase in four months. Futures on the three major averages had all traded in red figures ahead of the jobs report.
The market recieved a boost this week as Chair Jerome Powell told lawmakers the Federal Reserve is “not far” from being confident inflation is in the right place for the central bank to start bringing down borrowing costs.
Showing how the wind is blowing elsewhere, policymakers from the European Central Bank lined up to support a rate cut there before their summer break as inflation falls faster than expected. Meanwhile, Bank of Japan officials are said to be warming to the idea of finally lifting rates out of the negative zone.
On the corporate front, Costco (COST) shares slipped after its quarterly sales miss overshadowed an earnings beat. Broadcom’s (AVGO) revenue beat and forecast for $10 billion in sales of AI-linked chips failed to impress investors, sending the stock lower.
In commodities, gold futures (GC=F) continued to rally, as spot gold eyed its biggest weekly jump in five months amid optimism for a mid-year Fed rate cut.
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Fri, March 8, 2024 at 1:30 PM GMT+1
Costco being Costco
Costco (COST) being Costco has historically worked very well for investors.
The company sells giant $1.50 hot dogs at its foodcourt (they taste great, as you can see below in my 2022 photo with retired CEO Craig Jelinek). In the most recent quarter, an 18% online sales increase was fueled by gold bar demand. I surprisingly found (and bought) two…
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