U.S. Averages Jump 1% After Softer Jobs Report In April

Barry Adams
03 May, 2024
New York City

Benchmark indexes on Wall Street advanced in early trading as investors reacted positively to the softer jobs report in April. 

The S&P 500 index and the Nasdaq Composite advanced 0.2% in Friday's trading as investors looked forward to the release of April's nonfarm payroll data later in the day. 

The U.S. economy added 175,000 net new jobs in April, the Bureau of Labor Statistics reported Friday. 

In April, employment expanded in healthcare by 56,000, social assistance by 31,000, transportation and warehousing by 22,000, retail trade by 20,000, and construction by 9,000. 

The total nonfarm payroll employment for February was revised down by 34,000, from 270,000 to 236,000, and for March, it was revised up by 12,000, from 303,000 to 315,000. 

With these revisions, employment in February and March combined is 22,000 lower than previously reported.

Average hourly earnings in April increased by 0.2% to 7 cents to $34.75, and over the last 12 months, average hourly earnings rose by 3.9%. 

The U.S. economy added an average of 254,000 net new jobs in the first quarter, significantly higher than the long-term average addition of 170,000. 

Benchmark indexes are likely to close higher in the week after volatile trading when the Federal Reserve held its interest rate steady. 

The central bank ruled out rate increases but stressed that more evidence of cooler inflation is needed before rates could be lowered. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.2% to 5,071.59, and the Nasdaq Composite rose 0.2% to 15,863,16. 

The yield on 2-year Treasury notes edged higher to 4.88%, 10-year Treasury notes inched lower to 4.55%, and 30-year Treasury bonds edged lower to 4.71%.

WTI crude oil increased $0.41 to $79.36 a barrel, and natural gas prices increased 3 cents to $2.06 a thermal unit.

Gold decreased by $6.96 to $2,297.05 an ounce, and silver fell 23 cents to $26.44. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.18.

 

U.S. Stock Movers

Apple Inc. soared 6% to $183.44 after the maker of popular iPhone devices reported better-than-expected sales and earnings in its fiscal second quarter. 

Revenue in the fiscal second quarter ending in March declined to $90.7 billion from $94.8 billion, net income fell to $23.6 billion from $24.2 billion, and diluted earnings per share increased to $1.53 from $1.52 a year ago. 

Net sales in the Americas declined to $37.3 billion from $37.8 billion; in the European Union, they rose to $24.1 billion from $23.9 billion; in Greater China, they decreased to $16.3 billion from $17.8 billion; in Japan, they fell to $6.2 billion from $7.2 billion; and in the rest of Asia Pacific, they eased to $6.7 billion from $8.2 billion a year ago, respectively. 

The company's board of directors increased its quarterly cash dividend by 4% to 25 cents per share, payable on May 16 to shareholders on record on May 13. 

The company also announced a whopping $110 billion stock repurchase plan. 

Expedia decreased 12% to $119.52 after the online travel booking platform reported better-than-expected revenue in the first quarter. 

However, stock fell sharply after the company estimated full-year revenue growth in the range of mid- to high single-digits, disappointing some investors. 

Amgen soared 14% to $316.11 after the biotech company reported better-than-expected quarterly results and said it would no longer pursue the development of an experimental weight-loss pill. 

However, the company plans to take injectable obesity drugs into a phase 3 trial.