Could Tomorrow's Jobs Report Spur July Rate Cut? GME Soars 47% On Livestream News

The market slowed down today after it hit new all-time highs yesterday.

And Nvidia shareholders are probably about to panic sell after the stock dropped a massive -1% which is just unheard of for the chip giant.

Today’s post-mortem discusses Lululemon taking a healthy sprint in the right direction, traders on edge in anticipation for tomorrow’s jobs report, and Roaring Kitty’s livestream announcement cause and effect with GME.

But first, let’s start with today’s heatmap.

Thursday ended with the S&P 500 stepping back from its record-breaking high, leaving traders on the edge of their seats, eagerly anticipating the next scene—a pivotal U.S. economic report.

The grand market index took a minuscule 0.02% bow, closing the curtain at 5,352.96, after a dazzling performance earlier in the day that saw it reach an all-time intraday high. Meanwhile, the Nasdaq Composite did a subtle shuffle, lowering itself by 0.09% to 17,173.12. Not to be outshined, the Dow Jones Industrial Average took a star turn, rising 78.84 points, or 0.20%, to bask in the limelight at 38,886.17.

In the spotlight, Lululemon stole the show, leaping 4.8% as if springing from a yoga mat, surpassing expectations in its fiscal first quarter. However, Five Below stumbled, falling 10.6% as its performance failed to dazzle both in results and guidance. Chipmaker Nvidia also took a slight stumble, slipping 1.1% from its lofty heights earlier in the week.

Investors and economists alike are nervous, eagerly awaiting May's nonfarm payrolls report which will be released tomorrow, a critical piece in the puzzle of the U.S. economy and the Federal Reserve's next moves.

Economists surveyed by Dow Jones are placing their bets, predicting a modest increase of 190,000 jobs in May, a slight uptick from April's 175,000. Of particular interest are the wage numbers, where average hourly earnings are expected to nudge up by 0.3%, maintaining a steady annual pace of 3.9%, presenting ongoing challenges for the central bank.

However, recent employment indicators suggest a possible slowdown, with ADP's report of 152,000 new private payrolls and a slight rise in initial filings for unemployment benefits. Citigroup economist Andrew Hollenhorst underscores the significance of this report, noting that a weaker reading could signal a continued slowdown, while unexpected strength might delay rate cuts.

Citi forecasts a more conservative 140,000 new jobs and predicts a 4% unemployment rate, a scenario that could prompt the Fed to act sooner than expected. Currently, the market anticipates a rate cut in September, though Citi suggests a potential start in July, while Goldman Sachs anticipates modest job gains with seasonal adjustments.

Meanwhile, the anticipation for the report is palpable. As the audience eagerly awaits Friday’s release, they hope for clues of a weakening labor market—a twist that could potentially lead to rate cuts from the Federal Reserve.

Ross Mayfield, investment strategy analyst at Baird, weighs in on the market's signals, suggesting that while whispers of a cooling job market abound, the overall sentiment suggests that the economy is still humming along, not yet singing a somber recessionary tune. However, he cautions that the Fed's grip might have been too tight for too long, and once the momentum of a cooling job market gains traction, it could prove challenging to reverse.

Adding to the intrigue, the European Central Bank's recent rate cut—a move not seen since 2019—puts pressure on the Federal Reserve to potentially adjust its own policy. With the Fed's rate decision looming next week, speculation runs wild, with odds of a September rate cut gaining momentum faster than a speeding bullet. The Bureau of Labor Statistics is set to unveil the report at 8:30 a.m. ET tomorrow, so we will all have an answer soon enough.

Cat's Out of the Bag: Roaring Kitty's Comeback Sends GameStop Soaring

GameStop's stock experienced a remarkable surge of 47% following the exciting announcement that Keith Gill, famously known as "Roaring Kitty," is making a livestream appearance on his YouTube channel for the first time in four years. This news has reignited interest and speculation in the market, reminiscent of the fervor seen during the peak of the 2021 meme stock craze.

For those unfamiliar, Keith Gill played a pivotal role in the GameStop saga last year, where his bullish videos and social media posts were credited with fueling the unprecedented rise in GameStop's stock price. Now, with Gill back in the spotlight, investors are eagerly awaiting his insights and commentary.

However, Gill's return comes amidst heightened scrutiny. Recently, there have been reports of E*Trade considering kicking him off the platform due to his alleged involvement in the market frenzy. Additionally, the Massachusetts Secretary of State is investigating Gill's trades, adding another layer of intrigue to his return to the public eye.

The anticipation surrounding Gill's livestream has sent shockwaves through the market, with traders scrambling to secure a front-row seat to what promises to be an eventful session. It's like the hottest ticket in town, and everyone wants a piece of the action.

But amidst all the excitement and speculation, there's a lingering question on everyone's minds: will this event serve as the catalyst for the next massive GameStop move? Some are hopeful that Gill's return will reignite interest in the stock, while others remain cautiously optimistic.

Regardless of the outcome, Gill's livestream has certainly stirred up buzz in the investment community. As traders eagerly await the event, all eyes will be on GameStop's stock price to see how it reacts to Gill's much-anticipated return.

Stock Spikers of the Day

FibroBiologics, Inc.: [FBLG] [+53.88%]

GameStop Corp.: [GME] [+47.45%]

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