Stocks waver, yields inch higher after strong jobs report: Stock market news today

U.S. stocks wavered Monday as stocks reversed early-session losses after the release of Friday's jobs report showed continued strength in the labor market.

The S&P 500 (^GSPC) climbed 0.1%, while the Dow Jones Industrial Average (^DJI) added 0.3%, ending the day on an upbeat note.The technology-heavy Nasdaq Composite (^IXIC) dipped just below the flatline.

Government bonds yields were higher. The yield on the 10-year note climbed to 3.42%, while rate-sensitive two-year note yields gained to 4.01% Monday.

Crude oil (CL=F) slipped below $80 a barrel Monday after hovering around that level most of the last few days.

Wall Street last Thursday wrapped up a short but volatile week, ending on a modestly upbeat note ahead of Friday's jobs report. Stocks had been wobbly earlier in the week in response to signs of a slowing economy, including weak data on private payrolls and job openings.

The stock market was closed for Good Friday. Still, the Labor Department on Friday reported that nonfarm payrolls rose by 236,000 in March, slightly below consensus estimates for 240,000 and down from February's revised 326,000. The unemployment rate was steady at 3.5%, while the labor force participation rate climbed to a post-COVID era high of 62.6%.

Hourly earnings rose 0.3% compared to February’s figures. The annual gain cooled to 4.2%, below February’s 4.6%.

“The March jobs report suggests the US labor market is moving into a healthier balance as softer employment growth and cooler wage inflation suggest we're nearing the end of the Fed's rate hiking cycle,” Ryan Sweet, Chief US Economist at Oxford Economics, wrote after Friday’s report.

Following the release, markets are now pricing in a 65% probability that the Federal Reserve will raise interest rates by another 0.25% in May, according to data from the CME Group.

Meanwhile, this week Wall Street will be closely paying attention to March’s consumer price index report out Wednesday. Economists surveyed by Bloomberg expect the index to rise 0.3% from February, lowering the year-over-year headline inflation rate to 5.2%.

“Thinking about the near-term setup, investors remain bearish, and the recession narrative was the dominant narrative last week as bad news was treated as bad news,” wrote the U.S. market intelligence team at JPMorgan in a note. “The CPI print should give more certainty around the terminal rate.”

Minutes from the Fed’s late-March meeting will be released on Wednesday, giving more insight into the central bank’s policy moves.

Another potential catalyst for markets could come at the end of the week. Some of the bank heavyweights including Wells Fargo (WFC), JPMorgan (JPM), and Citi (C) will report earnings.

Under this backdrop, commercial lending has fallen more than $100 billion over the last two weeks of March, the largest dip on record, heightening the focus on bank earnings this week.

Meanwhile, as corporate earnings season kicks off, analysts anticipate companies in the S&P 500 to post a second consecutive slide in quarterly profits. First-quarter estimates have been sharply reduced to 6.8% from the same period a year ago, according to FactSet.

On the economic front, wholesale inventories were $919.2 billion at the end of February, up 0.1% from January's level, and below consensus estimates of 0.2%. Sales for the month rose 0.4%, lower than the expected 0.6% gain, the Commerce Department reported.

Separately, households project that inflation a year from now would stand at 4.7% compared February's reading of 4.2%, the first increase since October, according to a report from the New York Fed's March Survey of Consumer Expectations.

Meanwhile, New York Fed President John Williams is expected to take part on Monday in moderated discussion hosted by The Economics Review at New York University.

In single-stock moves, Tesla, Inc. (TSLA) shares moved down after the EV maker confirmed plans to build a major battery production site in Shanghai.

Pioneer Natural Resources Company (PXD) shares soared after a report from The Wall Street Journal hinted that Exxon Mobil held talks with the shale driller about a possible acquisition.

Shares of Apple Inc. (AAPL) fell 1.6% Monday after the company reported that their personal computer shipments tanked by 40% in the first quarter, signaling a bumpy start to the year for PC makers.

Micron Technology, Inc. (MU) shares surged 8% after Samsung Electronics said it plans to make meaningful cuts to chip production amid hammered prices across the industry.

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Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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