Home Editor's Picks US stocks jump after disappointing jobs data; Apple helps sentiment

US stocks jump after disappointing jobs data; Apple helps sentiment


Investing.com– U.S. stock index futures rose Friday, with sentiment boost by better-than-feared earnings from tech behemoth Apple, although sentiment remained on edge ahead of key payrolls data.

AT 06:30 ET (10:30 GMT), Dow Jones Futures rose 315 points, or 0.8%, S&P 500 Futures lifted 20 points, or 0.4%, and Nasdaq 100 Futures climbed 120 points, or 0.7%. 

Apple surges on earnings, buyback 

Apple (NASDAQ:AAPL) rose 6% premarket after the Cupertino, California-based tech giant posted earnings which were not as bad as markets were fearing. 

Declines in its revenue and earnings were not as deep as expected, although revenue from iPhone sales still missed expectations. This came amid softening demand and increased competition across its major markets, specifically China. 

But Apple’s services revenue beat expectations, while the firm forecast a return to revenue growth in the June quarter. 

Apple’s shares were also boosted by a record $110 billion stock buyback, while the firm also increased its dividend payout. 

The main Wall Street indices posted gains on Thursday, with the Dow Jones Industrial Average rising 0.9%, the S&P 500 gaining 0.9% and the NASDAQ Composite jumping 1.5%. 

Still, all three indexes were trading down for the week, as fears of higher-for-longer interest rates weighed.

Nonfarm payrolls present next challenge 

Despite Thursday’s strong session, sentiment remained on edge ahead of key nonfarm payrolls data, due later in the session.

The reading is widely expected to factor into the Federal Reserve’s outlook on interest rates, and comes after a Fed meeting earlier this week, where the central bank warned that interest rates will remain high for longer in the face of sticky inflation.

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Sustained strength in the labor market gives the Fed more impetus to keep rates high, although the central bank also said it will not raise rates any further.

Friday’s nonfarm payrolls data comes after the reading beat expectations for five straight months.  

Block surges on Q1 beat; Coinbase, Cloudflare sink

Other companies in the spotlight Friday include Block (NYSE:SQ), after the payments firm surged 7% premarket after its first-quarter earnings topped estimates. The firm also revealed that it had been steadily investing in Bitcoin.

Cryptocurrency exchange Coinbase (NASDAQ:COIN) fell 3% even as its quarterly earnings beat expectations, as pressure came chiefly from a sustained slump in cryptocurrency prices.

Cybersecurity firm Cloudflare (NYSE:NET) slid 13% after weak guidance overshadowed strong quarterly earnings.

Crude on track for hefty weekly losses

Crude prices edged higher from near seven-week lows Friday, but were headed for steep losses this week on demand uncertainty, robust U.S. stockpiles and easing tensions in the Middle East.

By 06:30 ET, the U.S. crude futures traded 0.2% higher at $79.12 a barrel, while the Brent contract climbed 0.3% to $83.91 per barrel.

Both benchmarks were set to lose between 5% and 6% this week, as investors worried about the prospect of higher-for-longer interest rates curbing growth in the U.S., the top global oil consumer, and in other parts of the world.

(Ambar Warrick contributed to this item.)

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