Stocks were choppy after the December employment report showed that the labor market remains strong (good news), although this could keep interest rates higher for longer (bad news).
Before the opening, the Bureau of Labor Statistics jobs
Markets recovered strongly in late 2023 on expectations that the Federal Reserve will begin to cut Interest rates
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This, in turn, adds to the inflationary pressures that the Federal Reserve is trying to reduce. Following today's employment data, CME Group
Analyst Sets Big Free Cash Flow Target for Nvidia
In individual stock news, NVIDIA NVDA ) gained 2.3% after BofA Values
NVDA's mastery in generative AI (artificial intelligence) can potentially help the company generate approximately $100 billion in free cash flow (FCF) over the next two years, the analyst writes in a note to clients. As a reminder, free cash flow is the money left over after a company has paid its expenses, interest on debt, taxes, and the long-term investments needed to grow its business.
"Of the roughly $100 billion in FCF, we estimate that only $30 to $35 billion could go toward buybacks, leaving $65 to $70 billion in ammunition for new organic and inorganic growth initiatives." says Arya, adding that this generation of free cash flow can help address uncertainty over the company's growth prospects.
Elsewhere, Interactive Platoon (PTON ) continued to rise after the fitness company said Thursday morning that it is teaming up with TikTok . The partnership will bring short-form fitness content to the social media platform. Consumer discretionary stocks rose 9.9% on Friday, bringing their two-day gain to more than 25%.
Regarding the main indices, the Dow Jones Industrial Average S&P 500 gained 0.2% to 4,697, and the Nasdaq Compound
CPI and fourth quarter earnings season underway
Looking ahead to next week, there is much to keep investors on their toes. On the economic front, the month of December Consumer Price Index (CPI)
Furthermore, the beginning of the fourth quarter Profits earnings recession John Butters senior earnings analyst at FactSet Research Systems, the upward estimate for fourth-quarter earnings per share fell 6.8% from September 30 to December 31.
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