Stock Markets Rise as Labor Market Exceeds Expectations with 196,000 New Jobs in March

US employers added 196,000 jobs last month, ahead of economists' forecasts.

And President Donald Trump is assured that the country knows it.

He praised the good news with a tweet of three words echoing what he said in 2016: three most important performance indicators: "JOBS! JOBS! ! JOBS & # 39;

When he left the White House for California, he said that the United States "is doing incredibly well."

"We have a lot of things very exciting. Many companies will soon announce their return to the United States, "he said. They all come back. They want to be where the action is.

The stronger-than-expected jobs report eased worries about the economy, after the February report initially indicated that only 20,000 jobs were created during the month, well below the recent pace . The government revised Friday this number to a growth of 33,000.

Average hourly earnings increased 3.2% in March from the previous year, which was lower than expected by economists. Markets are very sensitive to the numbers, because higher wages help workers buy more things, but they also reduce business profit margins.

The S & P 500 has climbed every day this week, although most gains have been modest; it is only 1.4% of the last peak in September.

The index has risen again since the close of its best quarter in nearly 10 years, rising 13.1% in the first three months of the year. If the index finished higher on Friday, he would win a seven-day winning streak, his longest in a year and a half.

Inventories around the world have also increased, with the United States and China stating that they are making progress in the negotiations to mitigate their trade war. President Donald Trump said Thursday that the United States and China "turned the corner" in the talks, which resumed Wednesday in Washington. After talks with Chinese Vice Premier Liu He, "nothing monumental" could be announced within a few weeks.

However, the market continues to face challenges, including expectations for the weakest corporate earnings reporting group in years. Economists also expect growth in the global economy to slow in 2019.

Apache, EOG Resources and Anadarko Petroleum all rose by at least 3%, as energy-related stocks rose due to the price of crude oil.

Good employment results helped to anticipate demand for oil and US benchmark crude rose 38 cents to 62.48 dollars a barrel. Its highest settlement price since November is near. The barrel of Brent, the international standard, rose 27 cents to 69.67 dollars.

Energy stocks in the S & P 500 jumped 0.9%, the largest gain among the 11 sectors in the index.

Profitability is one of the main concerns of the market as companies line up to start reporting their first quarter results next week.

Analysts expect the S & P 500 companies to record a decline of nearly 4% in earnings per share from the previous year, which would be the first drop since spring 2016 .

The expected decline in earnings is almost entirely due to weak profit margins. Analysts expect S & P 500 corporate revenues to grow nearly 5% in the quarter. According to analysts, companies retain less than 1 dollar of income as a profit compared to a year ago.