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U.S. stocks rose on Friday after the latest nonfarm jobs report was much weaker than expected.
A sharp rally in Apple (AAPL) also boosted stock prices after the world’s largest publicly traded company reported better-than-expected quarterly results. announced results and announced a record $110 billion in stock buybacks.
The Nasdaq Composite Index, which has a high proportion of high-tech stocks (Comp:IND) was 1.95% increase It rose to 16,150.12 points in morning trading. Blue-chip stock Dow (DJI) 1.19% increase The benchmark S&P 500 (SP500) rose to 38,680.56 points. Advanced 1.22% Up to 5,125.83 points.
Eight of the S&P’s 11 sectors rose, led by technology.
Prior to the start of regular trading, the stock’s stock price increased after the U.S. Bureau of Labor Statistics announced that jobs rose by 175,000 in April, well below the consensus estimate of 243,000. Index futures prices were rising significantly. The number of employees in April also slowed down significantly from the revised March figure of 315,000. On the other hand, the turnover rate rose slightly to 3.9% from the consensus of 3.8% and the previous figure of 3.8%.
The soft jobs report was welcomed by investors, especially after recent data continued to point to labor market resilience and persistent inflation clouding expectations for Federal Reserve interest rate cuts.
“Soft landing bulls will and should follow this report. Average hourly wages over the past three months are 2.8%. Given labor productivity growth, the wage inflation numbers This is consistent with our inflation target,” Renaissance said. Macro Research stated on X (formerly Twitter).
U.S. Treasury yields widened their decline as traders bought up bonds in response to the jobs report. Long-term 30-year bond yields (US30Y) fell 6 basis points to 4.67%, and 10-year bond yields (US10Y) fell 8 basis points to 4.51%. The yield on two-year bonds (US2Y), which is a short-term interest rate sensitive interest rate, also fell by 9 basis points to 4.79%.
See live data on how Treasury yields are moving across the curve on the Seeking Alpha Fixed Income page.
“We feel the April jobs report is very positive and consistent with a soft landing.The job market is strong, with underlying monthly payrolls growth nearing 200,000; “The economy is cooling down, unemployment is creeping towards 4%, and wage growth is below 4%,” says Mark, chief economist at Moody’s Analytics. Zandi said in X.
Apple (AAPL) received a lot of attention ahead of the jobs report. The tech giant announced its second-quarter 2024 financial results after the closing bell on Thursday. Expectations for the report were low amid sluggish iPhone demand and declining sales in China, as well as the perception that the company is lagging behind in the artificial intelligence race. But the company, led by Tim Cook, was able to achieve more than feared. Investors were also pleased when Apple (AAPL) added a record $110 billion to its stock repurchase program and raised its quarterly dividend by 4%.
“Apple (AAPL) had a pretty strong second quarter overall, as it achieved a new record for services revenue, with its services business as a percentage of consolidated sales reaching an all-time high of 26%. (That means Apple’s (AAPL) sales have grown by 26%.) Diversification efforts have been successful for companies that rely on hardware sales,” says Seeking Alpha contributor The Asian. Investor said in Thursday’s earnings reaction.
“The most attractive element of investing in Apple (AAPL) is that the company generates significant free cash flow, which is returned to shareholders through a very generous $110 billion share repurchase program. Asian Investor added.
Other than the release of nonfarm payrolls, Friday’s economic calendar was fairly light. S&P Global data showed growth in business activity in the U.S. services sector slowed in April as orders fell again. Economic activity in the services sector contracted in April for the first time since December 2022, according to data from the Institute for Supply Management.
Looking at other active stocks, Amgen (AMGN) is up more than 12% after the pharmaceutical giant announced positive updates on its obesity drug trials and reported quarterly results. It rose, further pushing up the Dow Jones Industrial Average (DJI).
