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In a busy week of economic reports, investor Stephanie Link is focusing her attention on key jobs data – including April’s nonfarm payrolls. In particular, Link, chief investment strategist and portfolio manager at Hightower, said that initial jobless claims will be a big focal point this week — even more so than the Federal Reserve’s expected quarter-point rate hike due Wednesday. “Initial claims, I think, is going to be even more important because they have been increasing,” she said Tuesday. “Expectations are for another rise this week versus last week.” Link added that 370,000 is a “recessionary level” for initial jobless claims. This unemployment data will be out on Thursday morning. April’s jobs report, which is out on Friday, is also another key indicator. Link estimates that nonfarm payrolls grew by around 200,000, but she’s focusing on average hourly earnings. “People are expecting about 4.2% [growth in average hourly earnings] year over year — still too high relative to the Fed,” she said. Separately, Link is looking ahead to Apple ‘s earnings report, due on Thursday after the market’s close. She anticipates that the company will do well in its iPhone and services segments. Link added that she sees Apple announcing an $80 billion stock buyback program while dividends increase by 5%. Still, Apple’s forward guidance could be lower than expected due to the company’s exposure to consumers, she added. Ahead of Warren Buffett’s Berkshire Hathaway earnings on Saturday, Link said she cares more about “what Berkshire says about the companies that they own,” including their railway businesses, as well as Apple and Occidental Petroleum . Link added that she’s taken a new position in UPS after the company lowered guidance on lower volumes in the U.S. Shares of UPS are up nearly 3% from the start of the year. See the video above for Link’s perspectives on upcoming economic data and her earnings season picks.
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