STOCK MARKET TODAY: SHARES RIP HIGHER AFTER WEAK JOBS REPORT
U.S. markets ended the week on a high note as treasury yields fell after the April jobs report came in weaker-than-expected, giving hope to investors that the Fed could cut rates sooner rather than later.
The Dow jumped 450 points to close higher by more than 1%, while the Nasdaq gained 2%. The S&P also ended higher by more than 1%.
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Friday's labor report for April showed 175,000 jobs added for the month, significantly below estimates of 250,000, while wage gains moderated. The unemployment ticked up to 3.9% from 3.8% in March.
The Fed had been looking to see the job market cool before it could start cutting interest rates, which is why the soft labor market data sent stocks surging.
Among the day's most actively traded stocks was Apple, which popped 6% after reporting stronger-than-expected earnings on Thursday afternoon. The iPhone maker also announced a staggering $110 billion in share repurchases, the largest corporate buyback in history.
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GameStop, one of the original meme stocks, also surged nearly 30% on no underlying news, giving investors flashbacks to the volatile period when the video-game seller would swing wildly for no apparent reason during the pandemic-era trading craze.
On the downside, shares of the cybersecurity company Cloudfare fell 16% after the company put out cautious guidance — even as earnings beat expectations.
Similarly, Expedia fell 15% following strong earnings coupled with disappointing guidance for the travel booking giant.
All three major indexes notched a winning week that was chock full of strong corporate earnings.
The earnings season continues next week — technically, it keeps going through the weekend, with Warren Buffett's Berkshire Hathaway set to announce its quarterly results Saturday morning. Automakers and media conglomerates will also be in focus.
Earnings Highlights To Watch Next Week
- Monday: Palantir, Minute Maid parent J&J Snack Foods, Tyson Foods, electric-vehicle maker Lucid
- Tuesday: Disney, Ferrari, Electronic Arts, Telefonica, BP
- Wednesday: Toyota, Uber, Airbnb, Shopify
- Thursday: Honda, ING, Warner Bros. Discovery, Warner Music Group
- Friday: Canadian energy multinational Enbridge, Soho House
