What we covered here today
- Markets: Stocks finish higher after a strong labor report.
- Jobs report: US economy added 263,000 jobs in April.
- Here’s what analysts are saying the strong jobs report.
- Tesla (TSLA) says it’s raising even more cash.
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What’s moving markets today: May 3, 2019
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April jobs report: Another strong month of hiring
2:40
• Source:
CNN Business
15 Posts
Stocks finish higher; Nasdaq hit new record high
Stocks finished higher on Friday, with the Nasdaq hitting a new closing record.
Shares in the basic materials sector led top gainers in the Nasdaq, helping it to its fresh high. Pulp mill operator Mercer International (MERC), for example, gained 23.7%.
In the S&P, Newell Brands (NWL) was a top performer all day and finished 13.5% higher.
Caterpillar (CAT) and Intel (INTC) were led gainers in the Dow, closing 2.9% and 2.4% higher, respectively.
Monster surges on earnings beat
Shares of Monster Beverage (MNST) spiked about 9% on Friday after the energy drink company posted good first-quarter results late Thursday.
The energy drink maker’s net sales grew 11.2% for the quarter, reaching $946 million and beating Wall Street’s expectations.
The company said the growth was driven by its core Monster Energy and Reign Total Body Fuel drinks.
Even though investors are cheering the results, Wells Fargo analyst Bonnie Herzog is urging caution because of an increasingly crowded energy drinks market, including Coca-Cola’s new energy drink, among others.
Adidas stock hits record high
We’re not totally done with records after all, it seems.
Adidas (ADDDF) shares climbed nearly 7% to an all-time high on Friday, after the company reported a whopping 40% increase in online sales.
Adidas’ main problem? It can’t make enough sportswear to keep up with the massive global demand.
Stock are going strong an hour into trading
Two hours into trading, stocks continue to extend their gains.
The Dow, S&P 500 and Nasdaq are in the green. The latter having climbed the most at 1%.
Microsoft (MSFT) is the strongest gainer in the Dow, up 1.5%. The tech company and the largest US bank by assets, JPMorgan (JPM), announced a partnership on Thursday. Microsoft’s Azure cloud platform will power JPMorgan’s Quorum blockchain platform.
In the S&P, consumer products maker Newell Brands (NWL) is leading top performers, gaining more than 12%.
Amazon shares pop after Warren Buffett discloses stake
The news that Warren Buffett’s company bought a stake in Amazon (AMZN) is sending is sending its stock up.
Amazon’s shares are up 3% today. The stock is now up 30% for the year.
The exact amount will be disclosed in Berkshire Hathaway’s (BRKA) quarterly report to the Securities and Exchange Commission later this month.
Stocks start strong after a better-than-expected jobs report
US stocks started stronger on Friday, with sentiment boosted by a stronger-than-expected jobs report.
US Steel (X) is a heavily trafficked stock this morning, climbing 4% at the open. The company announced a $1.2 billion investment in new facilities yesterday.
The biggest gainer in the S&P was consumer products maker Newell Brands (NWL), followed by Monster Beverage Corp (MNST). They were up 8.5% and some 7%, respectively, after reporting earnings.
US registers jobs growth for 100+ months in a row, posts biggest gains since January
The jobs report shines a light on just how strong the US labor market has been.
April was the 103rd consecutive month of job creation in the country, and unemployment fell to 3.6% – its lowest since December 1969.
How the market is reacting to the strong April jobs report
The jobs report painted a picture of a healthy labor market. Here’s how the market reacted:
- Futures for the Dow, S&P 500 and Nasdaq Composite remained in the green, pointing to stocks opening higher at the open. Futures registered a brief dip before climbing higher.
- The US dollar, measured by the ICE US Dollar Index, was also stronger, up 0.1% at 98.023. That’s the highest level since Monday.
- The 10-year US Treasury yield was little changed at 2.55%.
What analysts are saying about April's strong job numbers
The US economy added 263,000 jobs in April, and the unemployment rate dropped to 3.6%. Here’s how analysts are reacting.
Edward Moya, senior market analyst at Oanda:
Elise Gould, senior economist at Economic Policy Institute:
Gregory Daco, chief US economist at Oxford Economics’ tweeted this:
US economy adds 263,000 jobs in April. Unemployment rate falls to 3.6%
The US economy added 263,000 jobs in April, another surprisingly strong month of hiring.
The unemployment rate fell to 3.6%, the lowest level since December 1969.
Tesla says it's raising even more cash
A day after Tesla said it would raise $2.3 billion in stock and debt, the company said Friday it had decided to raise an extra $400 million.
In a new set of regulatory filings Friday morning, the company increased the amount of cash it expects to raise by about 17.5%.
Part of the increase is because of a slightly higher estimated price of the shares being sold. Shares gained 4% in trading Thursday after the initial capital raise was announced.
But Tesla also plans to sell more shares of stock to the public, along with more debt that can be paid off with stock in the future if the share price can hit a certain target.
Tesla’s (TSLA) stock was 1% higher in premarket trading.
Dish Network keeps shedding subscribers
Dish Network (DISH) lost more subscribers than expected.
The company shed 259,000 net subscribers in the first quarter, which includes both its streaming offering Sling and its old-fashioned satellite TV service.
That’s a major increase from the same quarter a year ago, when it lost 94,000 subscribers. Analysts expected Dish to lose 242,000 subscribers.
Sling added just 7,000 subscribers, compared to the 91,000 subscribers it added for the first quarter of 2018. CNN’s parent company, WarnerMedia, owns Sling-competitor DirecTV Now, lost subscribers this quarter.
The stock is flat in premarket trading.
What to expect from April's US jobs report
The US job market is about as good as it gets, but much longer can that last?
We will find out when government’s monthly jobs report is released Friday morning.
Economists polled by Refinitiv are forecasting a healthy but unspectacular 185,000 jobs added in April.
The unemployment rate is expected to remain at 3.8%, just a hair above the nearly 50-year low reached last year.
➡️Read here why one analyst said that despite recent strength, the direction of hiring is pointing down and not up.
Warren Buffett buys Amazon shares
European companies report earnings
- Shares in HSBC (HSBC), Europe’s largest bank by assets, rose more than 2% in London after it posted a 31% jump in profit. The increase was powered by retail banking and wealth management, while its trading business struggled.
- France’s Societe Generale (SCGLF) reported that its profits fell 26% to €631 million ($705 million) in the first quarter. The bank announced last month that it would cut 1,600 jobs as part of a turnaround plan.
- Shares in Adidas (ADDDF) advanced 7% in Frankfurt to a record high after the sportswear maker reported a 17% increase in first quarter operating profits. The company said online sales were up 40%.
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