U.S. markets ended the week higher as U.S. Treasury yields fell after a weaker-than-expected April jobs report, giving investors hope that the Fed could cut rates sooner rather than later. finished.
The Dow Jones Industrial Average rose 450 points to close more than 1% higher, while the Nasdaq rose 2%. The S&P also ended the day up more than 1%.
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Labor data for April released on Friday showed that employment increased by 175,000 in the month, well below the expected 250,000, while wage growth slowed. The unemployment rate rose to 3.9% from 3.8% in March.
Stocks soared on weak labor market data, as the Fed was trying to see if the job market calmed down before starting to cut interest rates.
One of the most actively traded stocks of the day was Apple, which soared 6% after the company announced better-than-expected earnings Thursday afternoon. The iPhone maker also announced a staggering $110 billion stock buyback, the largest corporate acquisition in history.
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GameStop, one of the original meme stocks, has also soared nearly 30% despite a lack of fundamental news, as video game retailers fluctuate wildly for no apparent reason amid a pandemic-era trading boom. This brought investors back to a period of instability.
On the downside, despite better-than-expected profits, shares of cybersecurity company Cloudfair fell 16% after the company issued cautious guidance.
Similarly, travel booking giant Expedia fell 15% after strong results and disappointing guidance.
All three major indexes emerged victorious in a week filled with strong corporate earnings.
Earnings season continues next week — until the weekend, to be exact, with Warren Buffett’s Berkshire Hathaway set to report its quarterly results on Saturday morning. Automakers and media conglomerates will also take notice.
Earnings highlights to watch next week
- Monday: Palantir, Minute Maid parent company J&J Snack Foods, Tyson Foods, and 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
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