Futures Rise Amid Anticipation of Jobs Report; J&J Announces Major Acquisition

Dow Jones futures saw a modest rise early Friday, alongside S&P 500 and Nasdaq futures, as investors awaited the March jobs report. Johnson & Johnson (J&J) announced its acquisition of Shockwave Medical, adding to the day’s significant market movements.

Key Takeaways

• Futures Rise: Dow Jones, S&P 500, and Nasdaq futures all saw modest gains.
• J&J Acquisition: Johnson & Johnson to acquire Shockwave Medical for $13.1 billion.
• Jobs Report: March jobs report expected to show a rise in nonfarm payrolls by 200,000.
• Market Reversal: Key indexes reversed gains due to Mideast tensions.
• Stock Movements: Notable movements in stocks like Google, Tesla, and Nvidia.

Market Overview

The stock market rally began strong on Thursday, buoyed by higher-than-expected jobless claims. However, key indexes reversed their gains in the afternoon due to rising Mideast tensions. Israeli Prime Minister Benjamin Netanyahu’s aggressive stance against Iran and its allies contributed to the market’s downturn.

J&J’s Major Acquisition

Early Friday, Johnson & Johnson announced its acquisition of Shockwave Medical for $13.1 billion, or $335 per share. Both J&J and Shockwave Medical stocks saw slight increases following the announcement. Shockwave Medical had already surged 68% to $319.99 as of April 4, 2024, driven by takeover speculation.

Anticipation of Jobs Report

The Labor Department is set to release the March jobs report at 8:30 a.m. ET. Economists predict a rise in nonfarm payrolls by 200,000, following February’s gain of 275,000. The jobless rate is expected to hold steady at 3.9%, with average hourly earnings projected to rise by 0.3% compared to February.

Stock Market Reversal

The stock market experienced a significant reversal on Thursday. The Dow Jones Industrial Average fell 1.35%, marking its fourth consecutive session of decline and dropping below the 50-day line for the first time since November 2. The S&P 500 index declined by 1.2%, closing below its 21-day line for the first time in three months. The Nasdaq composite, which was up 1.2% intraday, closed down 1.4%.

Notable Stock Movements

• Google: Google parent Alphabet is reportedly considering a bid for marketing software maker HubSpot. Google stock fell 2.8% to 150.53, while HubSpot stock closed up 4.9% to 657.68.
• Tesla: Tesla stock rebounded, paring weekly losses from poor delivery figures. However, it remains below key levels.
• Nvidia: Nvidia stock fell 3.4% to 859.05, finishing below the 21-day moving average for the first time in three months.
• AMD: Advanced Micro Devices suffered major losses, plunging 8.3% to 165.83.

ETFs and Sector Performance

• Growth ETFs: The iShares Expanded Tech-Software Sector ETF fell 1.2%, while the VanEck Vectors Semiconductor ETF slumped 2.7%.
• Speculative Stocks: ARK Innovation ETF fell 1.4%, and ARK Genomics ETF was down 1.6%.
• Sector ETFs: The SPDR S&P Metals & Mining ETF retreated 1.6%, and the SPDR S&P Homebuilders ETF stepped down 1.4%.

What to Watch

Investors should keep an eye on the market’s reaction to the jobs report. A positive reaction could present fresh buying opportunities, while a negative reaction might trigger sell signals. It’s crucial to have watchlists and exit strategies ready.

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Sources

• Dow Jones Futures Rise With Jobs Report Due After Ugly Market Reversal; J&J To Buy Shockwave | Investor’s Business Daily, Investor’s Business Daily.