5 Stocks to Watch After Thursday's Inflation, Unemployment Data: Why Netflix and 2 Gold Miners Are Moving

Economic figures released in early trading on Thursday showed producer price inflation (PPI) fell 0.5% in March, below expectations for a flat figure, and that weekly UI claims rose more than expected by 11,000 to 239,000. Both readings suggest that a moderating trend in price and labor market pressures is already underway.

The market's interpretation of these two data releases has revived hopes of a pause in interest rate hikes after the Federal Reserve's May meeting, the bets on lower rates having risen from the July meeting.

The stock market reacted positively, with major U.S. and global stock markets all in green, celebrating growing belief that the rate hike cycle that began in March 2022 is soon to end. its end. The SPDR S&P 500 Trust ETF SPY and the Dow Jones Industrial Average ETF DIA rose 0.3%, while the technology-heavy Invesco QQQ Trust Series 1 QQQ gained 1%.

US Stock Indices Jump After Thursday's PPI, Unemployment Data - Chart: TradingView

5 stocks to watch

These five stocks react strongly to economic data.

1) NEM from Newmont Corporation

The world's largest gold mining company was among the top performers in the S&P 500 midday Thursday, up more than 3%. The precious metal gained more than 1.4%, approaching $2050/oz on rising expectations of a change in Fed policy. Newmont has gained 10% so far this year, but is up more than 20% in the past month. The stock trades at a forward P/E ratio of 17.18x and offers a forward dividend yield of 3.22%, according to professional data from Benzinga. Date of the next results: April 27, 2023.

2) Freeport McMoran, Inc. FCX

The Arizona-headquartered metal miner was up 2.7% on Thursday. Freeport McMoran is benefiting from widespread increases in the prices of key base metals the company explores, such as gold, silver, copper and platinum. Freeport McMoran has gained 12% so far this year. The stock trades at a forward P/E ratio of 24.2x and offers a forward dividend yield of 1.46%, according to professional data from Benzinga. Date of the next results: April 21, 2023.

3) Netflix, Inc. NFLX

The streaming platform is up 3.4% on Thursday, reversing two losing sessions. Netflix thrives when projections of future interest rates fall as the company's valuations rise. Netflix has gained 17% so far this year, with all of the increase occurring in the previous month. The stock is trading at a forward P/E ratio of 28.7, according to data from Benzinga Pro. This metric is well below the five-year average, which sits at 60x. Date of the next results: April 18, 2023.

4) Old Dominion Freight Line, Inc. ODFL

The carrier lost 3% on Thursday, marking the worst day of trading so far in 2023. A decline in producer inflation has a negative impact on freight carriers as their margins begin to shrink. Bank of America Securities, Morgan Stanley, Wells Fargo, and Susquehanna recently cut their price targets for the stock. Old Dominion Freigh Line has gained 17% so far this year, but the company is down 3% year-to-date. The stock trades at a forward P/E ratio of 27.4 according to professional data from Benzinga. Date of the next results: April 18, 2023.

5) Marathon Digital Company, ...