U.S. Futures Rise as Apple’s Earnings and Labor Market Data Awaited
U.S. futures signaled a positive start to Friday’s trading session as investors processed earnings data from tech giant Apple and anticipated the release of the monthly U.S. labor market report.
At 03:37 ET (07:37 GMT), Dow futures surged by 214 points or 0.6%, while S&P 500 futures gained 9 points or 0.2%, and Nasdaq 100 futures climbed 74 points or 0.4%.
Thursday saw all major indices on Wall Street making gains, propelled by Federal Reserve Chair Jerome Powell’s comments earlier in the week hinting at a potentially dovish stance on interest rates. Powell’s remarks acknowledged sticky inflation but suggested that the Fed is unlikely to raise borrowing costs in the near future.
The Nasdaq Composite, particularly buoyed by better-than-expected quarterly results from Qualcomm (NASDAQ:QCOM), emerged as the top performer among the major averages, with shares in the chipmaker surging over 9%.
Apple’s Quarterly Sales Dip, But Beat Expectations
Apple revealed a decline in revenue for the first quarter of the year, but the figures surpassed analysts’ subdued projections, leading to a surge in the company’s shares during extended hours trading on Thursday.
Despite a 4% year-on-year decrease, Apple’s quarterly total revenue stood at $90.75 billion, exceeding expectations of $90.32 billion. Sales in greater China, a key market, dropped 8% to $16.37 billion, attributed to heightened competition from local smartphone rivals. iPhone sales, constituting about half of total revenue, dipped to $45.96 billion.
The tech giant also announced a $110 billion stock buyback program and raised its dividend by 4% to $0.25 per share, initiatives aimed at bolstering investor confidence. CEO Tim Cook expressed optimism about the role of artificial intelligence in driving future hardware demand.
Awaiting Nonfarm Payrolls Data
Investors are eagerly awaiting the release of the U.S. labor market report for April, expected to show a slower but steady pace of job creation compared to the previous month. Economists anticipate nonfarm payrolls to increase by 238,000, with the unemployment rate remaining at 3.8% and average hourly earnings growth maintaining a 0.3% month-on-month rate.
This data will provide crucial insights into the state of the world’s largest economy and may influence market expectations regarding future Federal Reserve actions.
Sony and Apollo Bid for Paramount
Reports surfaced that Sony and Apollo Global Management have submitted a joint bid of $26 billion in cash for Paramount Global. The bid, though nonbinding, marks a significant development in the ongoing saga over Paramount’s ownership. Shares in Paramount surged more than 13% following the news.
Oil Prices Inch Higher
Crude prices saw a modest uptick from near seven-week lows amid uncertainties surrounding demand, robust U.S. stockpiles, and easing tensions in the Middle East. Despite the slight rebound, oil prices are on track for significant losses this week.
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