Schwab IMPACT Conference: Jobs Data, Tech Earnings, Bitcoin Rebound

Market Overview - The market has shown signs of recovery after a challenging overnight trading session, particularly with technology stocks experiencing significant sell-offs, including Nvidia dropping below $200 [2][3] - Soft Bank also faced a sell-off of over 10% at one point, but there is a current recovery trend [3] Economic Data - The ISM services prices index came in at 70, exceeding street expectations of 68, indicating inflationary pressures [4] - New orders in the ISM services data rose significantly to 56.2%, surpassing the expected 51, suggesting increased economic activity [5] - The ADP report indicated the addition of 42,000 jobs, better than the anticipated 32,000, with a revision of previous job losses to a smaller decline [7][8] Labor Market Insights - The labor market is showing signs of resilience, with fewer concerns about employment despite inflationary pressures [10] - The immigration policy is estimated to have removed around 1.5 million jobs from the market, affecting small businesses significantly [12][13] - Small businesses, which account for the majority of hiring in the U.S., are experiencing a decline in hiring activity [14] Earnings Season - Over 80% of companies have beaten earnings expectations, surpassing the five-year average for revenue and adjusted earnings per share [16][17] - The positive earnings reports are primarily driven by technology companies, although the overall earnings growth may not be as pronounced on an equal-weighted basis [18] - Analysts are increasing their guidance, which is contributing to higher equity market valuations [19] Cryptocurrency Market - Bitcoin is currently consolidating around the psychological level of $100,000, with signs of buyer interest emerging [21] - Other cryptocurrencies like Ethereum and Ripple are also showing upward movement, indicating potential risk-on sentiment in the broader market [22]