Jobs report, hostilities in the Strait of Hormuz, used car prices and more in Morning Squawk

• April jobs report expected at 8:30 a.m. ET with economists forecasting just 55,000 new jobs versus March's higher number; unemployment rate projected to hold at 4.3%
• U.S. and Iran exchanged attacks in the Strait of Hormuz, threatening the fragile ceasefire, though President Trump characterized the strikes as 'just a love tap' and said the ceasefire remains in effect
• Used car prices fell 1.6% month-over-month in April per Cox Automotive, offering relief to consumers, though prices remain 1.8% higher year-over-year; average used EV listings are $9,000 above overall market

Market Summary: Jobs Report, Geopolitical Tensions, and Corporate Developments

Jobs Report Expectations

The April employment report releases at 8:30 a.m. ET Friday, with economists forecasting 55,000 jobs added—a significant slowdown from March. The unemployment rate is expected to hold at 4.3%. JPMorgan anticipates potential market volatility based on the results. Earlier ADP private payrolls data showed weaker-than-expected growth.

Corporate Earnings Impact

Major stocks experienced severe declines Thursday despite the S&P 500 reaching new highs. Planet Fitness plunged over 28% after cutting guidance and reporting weak member growth. Whirlpool posted its worst day ever, dropping 28% citing "recession-level industry decline" linked to the Iran war. McDonald's fell despite beating expectations, with concerns that the consumer environment "may be getting a little bit worse."

Strait of Hormuz Tensions

U.S. and Iranian forces exchanged fire in the strategic shipping route Thursday, with both sides blaming the other. The incident threatens the fragile ceasefire, though President Trump characterized the attacks as "just a love tap" and maintained the ceasefire remains effective. Despite the hostilities, oil prices remained flat. Shell CEO warned the oil market is deteriorating and could worsen as conflict continues.

Technology Sector

Cloudflare shares dropped 15% premarket after announcing workforce cuts despite beating Q1 earnings expectations. The company cited 600% increased internal AI usage over three months, with CEO emphasizing agentic AI is fundamentally changing required roles.

Used Car Market

April used car prices fell for the first time in 2026, declining 1.6% month-over-month per Cox Automotive's Manheim Index, though still 1.8% higher year-over-year. Electric vehicle interest increased amid rising gas prices, but used EVs average $9,000 above overall market pricing.