Market Recap for 5th May 2016 – Tomorrow is the big day…

By Markus Heitkoetter

Stocks ended the session mixed after a choppy day of trading.

The major indices were off to a nice start when they opened the day higher. But a sideways morning left traders with little to get excited about.

After failing to break to the upside, the major indices dropped in the early afternoon, bringing stocks to their lows.

By the end of the session the DOW was in positive territory. But the S&P and NASDAQ closed lower for the 3rd day in a row.

Here’s where the major indices ended the day:

The S&P finished flat. Down a half point, the S&P ended at 2,051.

The DOW ended 0.1% higher. Adding 9 points, the DOW closed at 17,661.

The NASDAQ was down 0.2%. With a 9 point loss, the NASDAQ finished at 4,717.

Tomorrow it’s all about jobs.

It’s no surprise that the markets are “Fed sensitive” these days. And now traders are asking…

Will the Fed raise rates in June?

Fed members have hinted at the possibility of a June rate hike. But traders don’t seem to be biting.

The Fed plans to raise rates twice this year, but traders believe the probability of a June rate hike is just 10%. The next piece of data that MIGHT support (or kill) the possibility of a June rate hike comes tomorrow when April’s jobs data is released.

If you missed it, the talk of the day was Tesla (TSLA).

Yesterday Tesla (TSLA) released better than expected earnings numbers after the bell. With a smaller loss than expected, the early trading reaction was positive.

TSLA opened the day 2.7% higher. But in spite of a great start, TSLA reversed course and ended with a 5.0% loss. TSLA is down almost 15% over the last 5 trading days.

Crude Oil (CL) was all over the place today!

CL was up almost 5.0% when the day began. But after encountering the $46 a barrel mark, CL retreated, and continued to drop throughout the day. By the end of the session CL was up 1.3%, closing at $44.34 a barrel.

Tomorrow brings us the most anticipated report of the week…the Jobs Report. At 8:30am ET, we’ll get Average Hourly Earnings, Non-Farm Employment Change, and the Unemployment Rate.

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