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Homemarket insiderMore earnings, April's big jobs report and inflation worries could swing markets...

More earnings, April’s big jobs report and inflation worries could swing markets in the week ahead

  • April's employment report Friday could show the economy added 1 million jobs, but a much "hotter" number could have investors wondering how long the Fed will stay on hold.
  • There are dozens of earnings expected in the week ahead from General Motors and Pfizer to Draftkings and Beyond Meat.
  • Some market pros wonder if investors will "sell in May" this year, while Credit Suisse strategists have gotten even more bullish, boosting their S&P 500 target to 4,600.

Traders on the floor of the New York Stock Exchange.Source: NYSE

April's jobs report and a barrage of earnings news make for another busy week for markets, as the calendar rolls into May.

Stocks notched solid gains in April, as REITs, consumer discretionary names and communications services companies outpaced the broader market, all more than 7% higher. However, April finished on a sour note, with stocks selling off on Friday.

"Since November, there's been a 30% rally," said Jimmy Chang, chief investment officer at Rockefeller Global Family Office. He noted that historically the November to April period is the strongest for stocks. "There's the adage 'sell in May, go away.' It may be somewhat appropriate this year since we've done so well in the last six months."

Big jobs report

April's employment report is schedulted to be released Friday, and the market is expecting a big number.

Economists say payrolls in April could easily reach 1 million, after 916,000 jobs were added in March. Estimates range from about 700,000 to a forecast of 2.1 million from Jefferies economists.

According to Dow Jones, there is a consensus forecast of 978,000 among the economists it surveyed and the unemployment rate is expected to fall to 5.8% from 6%.


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