Stocks stop slide as Apple rises ahead of earnings: Markets wrap

(Bloomberg) — The world's largest technology companies led a rebound in U.S. stocks ahead of Apple Inc.'s earnings, with Wall Street also preparing for a jobs report on Friday.

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Stocks stopped falling for two days. Nvidia Corp led gains in chipmakers and Apple rose 1.5%. Wall Street expects the iPhone maker to announce a stock buyback, following in the footsteps of big tech companies Alphabet Inc. and Meta Platforms Inc. Any news related to AI features could provide further excitement.

In the run-up to the monthly employment report, data showed that US labor costs jumped by the most in a year as productivity gains slowed, raising the risk of inflation remaining high. Economists polled by Bloomberg expected a 240,000 increase in nonfarm payrolls, the slowest pace since November.

The Federal Reserve decided on Wednesday to leave its interest rate target range at 5.25% to 5.5% after a series of data that indicated continued price pressures. Jerome Powell said the Fed's next move is unlikely to be to raise interest rates.

“While the Fed appears to have ruled out raising interest rates, it has also made clear it wants to keep interest rates high for longer,” said Chris Larkin of Morgan Stanley's E*Trade. “Markets will be hungry for any data that suggests the economy is not accelerating further than it was in the first quarter.”

The S&P 500 index hovers near 5040. Qualcomm, the world's largest smartphone processor seller, rose on optimistic expectations. EBay Inc. declined. Because of disappointing expectations. 10-year Treasury yields were little changed at 4.63%. The dollar fell.

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

The S&P 500 is expected to move 1.2% in either direction after the release, based on the cost of buy and sell trades that expire on Friday, according to Stuart Kaiser, head of U.S. equity trading strategy at Citigroup.

That figure, based on extended Standard & Poor's prices through Wednesday's close, is the largest implied swing ahead of an employment report since March 2023, he said.

The most prominent features of the company:

  • Peloton Interactive said CEO Barry McCarthy will step 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 profits that beat analysts' expectations, benefiting from a post-pandemic recovery in Macau and a new partnership with Marriott International that helped fill hotel rooms.

  • Carvana reported stronger earnings as revenue beat expectations as the company digs deeper into a restructuring plan and regains sales momentum.

  • DoorDash Inc., the largest U.S. food delivery service, offered a disappointing earnings outlook for the current quarter as the company invests in expanding its roster of non-restaurant partners and improving efficiency.

  • Moderna Inc. announced It reported a lower first-quarter loss than Wall Street had expected, as the biotech giant's cost-cutting helped offset a sharp decline in its coronavirus-related business.

  • Apollo Global Management Inc. announced Reported higher earnings in the first quarter as the company took in more management fees and established a record $40 billion in private credit, a key area of ​​growth.

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Main events this week:

  • Unemployment in the eurozone, Friday

  • US Unemployment, Nonfarm Payrolls Report, ISM Services, Friday

  • Chicago Fed President Austin Goolsbee speaks Friday

Some key movements in the markets:

Stores

  • The S&P 500 was up 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 index was little changed

  • MSCI World Index rises 0.5%

Currencies

  • The Bloomberg Dollar Spot Index fell 0.4%.

  • The euro fell 0.2 percent to $1.0688

  • The British pound fell 0.3 percent to $1.2487

  • The Japanese yen rose 0.1% to 154.40 per dollar

Digital currencies

  • Bitcoin rose 2.4% to $58,651.28

  • Ethereum rose 1.3% to $2,975.97

Bonds

  • The yield on 10-year Treasury bonds was little changed at 4.63%.

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

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

Goods

  • There was little change in West Texas Intermediate crude

  • Gold fell in spot transactions by 1 percent to $2,296.52 per ounce

This story was produced with assistance from Bloomberg Automation.

–With assistance from Ryan Vlastelica and Jessica Minton.

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