Business

Stocks Halt Slide as Apple Climbs Before Earnings: Markets Wrap

(Bloomberg) — The world’s biggest technology companies led a rebound in U.S. stocks ahead of Apple Inc.’s earnings, with Wall Street also gearing up for Friday’s jobs report.

Most read on Bloomberg

Stocks halted a two-day decline. Nvidia Corp. led the gains among chipmakers and Apple climbed 1.5%. Wall Street expects the iPhone maker to announce a stock buyback, following the lead of fellow big tech companies Alphabet Inc. and Meta Platforms Inc. Any news related to artificial intelligence features could spark excitement additional.

Ahead of the monthly jobs report, data showed that U.S. labor costs rose the most in a year as productivity gains slowed, heightening risks that the inflation remains high. Economists surveyed by Bloomberg forecast an increase of 240,000 nonfarm jobs, which would be the slowest pace since November.

The Fed decided Wednesday to leave the target range for its benchmark rate between 5.25% and 5.5% following a series of data showing continued price pressures. Jerome Powell said it was unlikely the Fed’s next move would be a rate increase.

“Even though the Fed appears to have all but ruled out a rate hike, it has also made clear that it is willing to keep rates high for longer,” said Chris Larkin at Morgan Stanley’s E*Trade. “Markets will be hungry for data that suggests the economy is not warming any more than in the first quarter.”

The S&P 500 was hovering near 5,040. Qualcomm Inc., the world’s largest seller of smartphone processors, surged on optimistic forecasts. EBay Inc. collapsed amid disappointing prospects. Yields on the 10-year Treasury were little changed at 4.63%. The dollar has fallen.

The options market is betting that stocks will see big swings after Friday’s U.S. jobs report, which traders say will provide more clarity on how much the Federal Reserve could cut interest rates. interest this year.

The S&P 500 Index is expected to move 1.2% in either direction after the release, based on the cost of at-the-money put and call options expiring Friday, according to Stuart Kaiser, head of trading strategy at US stocks at Citigroup Inc.

That figure, based on S&P stock prices as of Wednesday’s close, is the largest implied change ahead of a jobs report since March 2023, he said.

Company strengths:

  • Peloton Interactive Inc. said CEO Barry McCarthy is stepping down as the company undergoes a major restructuring that will reduce its global workforce by 15% in a bid to cut costs.

  • MGM Resorts International reported first-quarter sales and profit that beat analysts’ forecasts, benefiting from Macau’s post-pandemic recovery and a new partnership with Marriott International Inc. that helped fill hotel rooms.

  • Carvana Co. reported stronger earnings with revenue above expectations as the company deepens its restructuring plan and regains sales momentum.

  • DoorDash Inc., the largest food delivery service in the United States, reported disappointing profit guidance for the current quarter as the company invests in expanding its list of non-restaurant partners and in improving its efficiency.

  • Moderna Inc. reported a first-quarter loss that was smaller than Wall Street had expected, as the biotech giant’s cost cutting helped offset a sharp decline in its Covid business.

  • Apollo Global Management Inc. reported higher first-quarter profit as the company raked in more management fees and extended a record $40 billion in private credit, a key area of ​​growth.

Key events this week:

  • Unemployment in the euro zone, Friday

  • US unemployment, non-farm payrolls, ISM services, Friday

  • Chicago Fed President Austan Goolsbee speaks Friday

Some of the main market movements:

Actions

  • The S&P 500 rose 0.4% as of 10:31 a.m. New York time

  • The Nasdaq 100 rose 0.5%

  • The Dow Jones Industrial Average rose 0.4%

  • The Stoxx Europe 600 has changed little

  • The MSCI World index increased by 0.5%

Currencies

  • The Bloomberg Dollar Spot Index fell 0.4%

  • The euro fell 0.2% to $1.0688

  • The British pound fell 0.3% to $1.2487.

  • The Japanese yen rose 0.1% to 154.40 per dollar

Cryptocurrencies

  • Bitcoin rose 2.4% to $58,651.28

  • Ether rose 1.3% to $2,975.97

Obligations

  • The yield on 10-year Treasury bills changed little at 4.63%

  • The German 10-year yield fell two basis points to 2.56%

  • The UK 10-year yield fell five basis points to 4.31%

Raw materials

  • West Texas Intermediate crude was little changed

  • Spot gold fell 1% to $2,296.52 an ounce

This story was produced with the help of Bloomberg Automation.

–With help from Ryan Vlastelica and Jessica Menton.

Most read from Bloomberg Businessweek

©2024 Bloomberg LP

News Source : finance.yahoo.com
Gn bussni

Sara Adm

Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe.Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
Back to top button