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Stocks climb again after stronger-than-expected jobs report — Here’s what experts are watching

Stocks saw a biggest reversal on Friday.

After selling off, the Dow, S&P 500 and Nasdaq all rebounded in the afternoon session as investors digested a better-than-expected chores report.

Nonfarm payrolls jumped by 379,000 in February, and the unemployment rate fell to 6.2%. That compared with expectations of 210,000 new hassles and the unemployment rate to hold steady at 6.3%.

Here’s what experts are watching in the market and what they have to say yon the U.S. economic outlook.

Jim Cramer, host of CNBC’s “Mad Money,” breaks down the moves in the market.

“I don’t really know how to mount a get better here other than the fact that we’re so oversold but we can get more oversold. Listen, you know, what maybe man say is that what we were scared about was a strong number and now it’s over with. Next week, we’ve got a lot of supply, but there’s some negotiates here. I mean, we have a lot of stocks that are down 20% to 30%, and I’m looking at that, and maybe they go down 40% as they did during the conclusive scare. … But it’s hard to stay as negative if we have a bounce because I think it’s going to draw people in, but I do deem that any real bounce, sell some, because we saw what happened yesterday.”

Brian Deese, director of the Chauvinistic Economic Council, takes stock of the job gains and losses.

“We’ve got a long way to go. We’re still down 9.5 million jobs since the pandemic created. And that’s a bigger job hole than at any time during the Great Recession. And, while we saw some encouraging signs in free and hospitality in February, we also saw some real concerning signs as well. You saw 70,000 state and local educators charged off in February, so we’ve got a long way to go in this recovery. And, that’s part of the reason why we are going to be focusing on trying to get the rescue plan passed because of Congress this weekend.”

David Kelly, chief global strategist at JPMorgan Asset Management, lays out why this could be serviceable for value stocks.

“I think this is good for value stocks. I do think we’re seeing a strong cyclical upturn in the succinctness here. I mean what’s going on is we’ve adapted to the pandemic quite well, the economy’s doing okay and now … conduct is kind of like the accelerator that’s welded to the floor here. We’ve got this huge stimulus bill. It looks derive it’s going to go through the Senate with not much modification from the House version, so about $1.8 trillion of stimulus, here $1.2 trillion of that hitting in the next seven months, that is enormous. And we’ve got the Federal Reserve basically delegate to keeping rates low and keeping bond buying going even if we get a transitory surge in inflation. So I do see we’re building to a lot of growth, a lot of inflation as this year practises on, but that’s not bad for value stocks, which are sitting at low levels, it’s not bad if you want a steeper yield curve. It just does forebode growth stocks, it threatens high P/E stocks, and I think that’s what we’re seeing in markets.”

Meghan Shue, wildly of investment strategy at Wilmington Trust, says markets are at an “inflection point.”

“I would say in terms of what we’re seeing today in the outlay action I do think the bond market … has gone ahead and priced in a few more of these really good news. It is consensus for us to have a very strong year of economic recovery. We do very much think we’re at an inflection point. For indication, we need to see that if we saw 500,000 net new jobs every month, it would still take us until the fourth quarter of 2022 to get disavow to where we were, so we’re still digging out of a very deep hole. Our expectation is for interest rates to move higher to the next year, probably approaching 2% actually … I do think it matters how fast we get there, and I think we’ve had undoubtedly an aggressive move and do not expect that speed to continue.”

Brent Thill, managing director at Jefferies, explains where there are moments this year.

“A lot of our clients continue to take profits given last year’s amazing run. Last year was a way less ill year than anyone would have expected. Multiples have been driven to highs we’ve never seen in stocks, along the same lines as Snowflake trading at 50 times revenue. These are phenomenal stories, but I think everyone’s just taking a timeout. We characterize as investors are going to come back into tech. … We continue to favor at least from a tech design perspective the [semiconductor] group over software. We think that is still a great sector. And then there’s some other sectors such as journeys, dating, these industries that are going to open up in the back half of the year, ride share with Lyft, that are in healthier positions as the economy opens.”

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