STOCK MARKET TODAY: INDEXES UP AFTER JOBS REPORT SHOWS HIRING SLOWDOWN
All three major U.S stock indexes were up Friday morning after the April jobs report showed a slowdown in hiring.
The report from the Labor Department revealed that the U.S. economy added 175,000 jobs in April, a sharp pullback from the previous month when over 300,000 jobs were added. The unemployment figure ticked up to 3.9 percent.
"Investors will interpret today's weak jobs report as a sign that demand is slowing in the labor market," said Richard Flynn, Managing Director at Charles Schwab U.K., in a note to Newsweek.
"Both markets and central bankers have been looking for evidence that disinflation may be ahead, and today's figures could indicate that the economy is slowing down," he added.
The report suggests that elevated interest rates set by the Federal Reserve are weighing on the economy. The Fed has kept the rate at 5.5. percent since July last year with no cuts in sight.
"A dive in the labor market may be what it takes to push the Fed from a stroll to a sprint," Flynn said in his note, with regards to cutting rates.
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Meanwhile, Apple shares were up more than six percent Friday, a day after the iPhone maker announced better-than-expected quarterly results.
The tech giant saw sales and profits fall in the most recent quarter but not nearly by as much as analysts expected. Apple also revealed it would be initiating a $110 billion stock buyback scheme, reportedly the largest in the company's history, and forecast increased revenue later in the year.
In a press release accompanying the quarterly results, CEO Tim Cook said: "As always, we are focused on providing the very best products and services for our customers, and doing so while living up to the core values that drive us."
Apple's CFO, Luca Maestri said: "Our active installed base of devices has reached a new all-time high across all products and all geographic segments, and our business performance drove a new [earnings per share] record for the March quarter."
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Looking forward, Warren Buffett's multinational conglomerate Berkshire Hathaway is expected to publish earnings over the weekend, with reports being made available on Saturday, 7:00am ET.
There are multiple auto and transport related stocks for investors to track on the road ahead. Ferrari, Toyota, Uber and Honda are all set to release their quarterly earnings reports next week.
Next week also promises results from some big-name entertainment companies.
Earnings Highlights To Watch Next Week
- Monday: Palantir, Minute Maid and Slush Puppy parent J&J Snack Foods, Tyson Foods, electric-vehicle maker Lucid
- Tuesday: Disney, Ferrari, Electronic Arts Inc., Telefonica, energy giant BP
- Wednesday: Toyota, Uber, Airbnb, Shopify
- Thursday: Honda, ING, Warner Bros. Discovery, Warner Music Group
- Friday: Canadian energy multinational Enbridge, Soho House
Update, 5/3/24, 9:15 a.m. ET: This article was updated to reflect markets reaction to the April jobs report.
Update, 5/3/24, 10:25 a.m. ET: This article was updated after markets opened for the day.
2024-05-03T10:31:21Z dg43tfdfdgfd
