Tech lifts shares hours after Apple’s earnings: Markets wrap

(Bloomberg) — The world’s largest technology company, Apple Inc. Stocks rebounded ahead of earnings, and Wall Street traders were also gearing up for Friday’s key jobs report.

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Equities snapped a two-day slide, with Nvidia Corp leading gains among chipmakers and Apple up 1.5%. Wall Street, the iPhone maker’s fellow tech giant Alphabet Inc. And it expects to follow in the footsteps of Meta Platforms Inc. and announce a buyback. Any news related to artificial intelligence features could add extra excitement to the stock, which has fallen more than 10% this year.

Data showed U.S. labor costs rose by the most in a year ahead of the monthly employment report, adding to risks of rising inflation as productivity gains slowed. Economists surveyed by Bloomberg had forecast a gain of 240,000 in nonfarm payrolls, a slower pace after November.

The central bank on Wednesday decided to leave the target range for the benchmark rate at 5.25% to 5.5% following a spate of data that pointed to lingering price pressures. Jerome Powell said the Fed’s next move is to raise rates unlikely.

“While the Fed appears to have ruled out a rate hike, it has also made clear it is willing to keep rates on hold for longer,” said Chris Larkin at E*Trade from Morgan Stanley. “Markets will be hungry for any data that suggests the economy isn’t warming up more than it was in the first quarter.”

The S&P 500 was near 5,040. The Nasdaq 100 rose nearly 1%. Qualcomm Inc., the world’s biggest seller of smartphone processors, rose on an upbeat forecast. eBay Inc. Collapsing at the sight of disappointment. The 10-year Treasury yield fell three basis points to 4.60%. The dollar retreated.

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The options market is betting that stocks will swing broadly after Friday’s U.S. jobs report, which traders expect will provide more clarity on how much the Federal Reserve may cut interest rates this year.

The S&P 500 index, based on the price of puts and calls expiring Friday, is expected to move 1.2% in either direction after the release, according to Stuart Kaiser, head of U.S. equity trading strategy at Citigroup Inc.

That figure was based on the price of the S&P straddles at Wednesday’s close, the biggest implied swing ahead of an employment report since March 2023, he said.

Bank of America Corp.’s Savita Subramanian said that even without Fed interest rate cuts, a solid economy will sustain the bull market run in U.S. stocks.

“I think we’re headed for a soft landing, with a fair market environment, better growth than we’re used to, higher rates and a little bit more inflation,” Subramanian said on Bloomberg Television on Thursday.

Company Highlights:

  • Peloton Interactive Inc. The company’s CEO Barry McCarthy said he is stepping down as the company undergoes a major restructuring that will cut its global workforce by 15% in an effort to cut costs.

  • MGM Resorts International reported first-quarter sales and earnings that beat analysts’ forecasts, helped by Macau’s post-pandemic recovery and hotel room bookings.

  • As the company digs into its restructuring plan and regains sales momentum, Carvana Co.

  • DoorDash Inc., the largest U.S. food delivery service, delivered a disappointing profit forecast for the current quarter as the company invests in expanding its list of non-restaurant partners and improving efficiency.

  • Moderna Inc. Wall Street reported a narrower-than-expected first-quarter loss as cost-cutting helped the biotech giant offset a steep decline in its Covid business.

  • Apollo Global Management Inc. The company posted higher first-quarter profit as it charged higher management fees and private lending, a key area of ​​growth, hit a record $40 billion.

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Highlights of this week:

  • Eurozone unemployment, Friday

  • US Unemployment, Non-Farm Payrolls, ISM Services, Friday

  • Chicago Fed President Austin Goolsbee speaks on Friday

Some key movements in the markets:

Shares

  • The S&P 500 was up 0.5% as of 12:01 p.m. New York time.

  • The Nasdaq 100 rose 0.8%

  • The Dow Jones industrial average rose 0.5%

  • The Stoxx Europe 600 fell 0.2%

  • The MSCI world index rose 0.6%

Coins

  • The Bloomberg Dollar Spot Index fell 0.6%

  • The euro was little changed at $1.0706

  • The British pound fell 0.2% to $1.2507

  • The Japanese yen rose 0.5% to 153.84 per dollar

Cryptocurrencies

  • Bitcoin rose 3.3% to $59,212.34

  • Ether rose 1.7% to $2,985.99

Bonds

  • The yield on 10-year Treasuries fell three basis points to 4.60%.

  • Germany’s 10-year yield fell four basis points to 2.54%

  • Britain’s 10-year yield fell eight basis points to 4.29%.

materials

  • West Texas Intermediate crude was down 0.6% at $78.49 a barrel.

  • Spot gold was down 0.9% at $2,298.63 an ounce

This story was produced with the help of Bloomberg Automation.

–With assistance from Ryan Vlastelica and Jessica Menton.

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