Stocks notched solid gains in April, as REITs, consumer discretionary names and communications services companies outpaced the broader market, all more than 7% higher.
“Since November, there’s been a 30% rally,” said Jimmy Chang, chief investment officer at Rockefeller Global Family Office.
Economists say payrolls in April could easily reach 1 million, after 916,000 jobs were added in March.
The chairman emphasized that the Fed is not close to tapering back its bond-buying program, a surprise to some investors.
“Next week is all about the jobs number, because as part of the Fed’s path to ‘substantial progress’ on their two roles, we’ll see how much further along that path they are next Friday” said Peter Boockvar, chief investment officer at Bleakley Advisory Group.
The Fed has expected a temporary period of high inflation which it anticipates to see subside later in the year though Boockvar and others say inflation could be hotter than the central bank expects.
If the central bank starts to taper back those asset purchases, it would then signal it would be on the path toward raising interest rates.
Powell is among Fed speakers in the coming week, but he is not expected to provide any new views when he participates in a National Community Reinvestment Coalition conference Monday afternoon.
“We are raising our 2021 S&P 500 price target to 4600 from 4300, representing 9.2% upside from current levels, and 22.5% for the year,” he wrote.
A host of travel-related companies issue results, including Booking Holdings, Hilton Worldwide, Marriott Vacations and Caesars Entertainment.
“In spite of the really strong reports from the bellwether companies, you’re seeing some of the names starting to peter out a little bit,” said Chang.
The Dow rose 2.7% in April, to 33,874, and the Nasdaq gained 5.4% in April, ending Friday at 13,962.