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Stock Market Today: Dow ends week in red despite Apple-inspired rally

Published 05/05/2023, 03:57 PM
Updated 05/05/2023, 04:03 PM
© Reuters.

© Reuters.

Investing.com -- The Dow ended the week in the red despite a rally on Friday amid an Apple-led jump in tech and a better-than-expected monthly jobs report that eased worries about a deeper and darker recession. 

the Dow Jones Industrial Average added 1.7%, or 546 points lower, and the Nasdaq gained 2.3%, and the S&P 500 was up 2.3%.

Apple (NASDAQ:AAPL) rose more than 3% after reporting fiscal second-quarter results that topped Wall Street estimates, underpinned by strong iPhone sales in emerging markets.

Overall this is remains a “golden installed base story” for Apple, Wedbush said, setting up for a ‘new ‘mini super cycle’ despite the murky macro heading into the anniversary iPhone 15 expected to launch in the September timeframe.”

Other big stocks including Alphabet Inc Class A (NASDAQ:GOOGL), Microsoft Corporation (NASDAQ:MSFT) and Amazon.com Inc (NASDAQ:AMZN) were also higher. 

Regional banking stocks Western Alliance Bancorporation (NYSE:WAL), First Horizon National Corporation (NYSE:FHN), and PacWest Bancorp (NASDAQ:PACW) clawed back their losses from a day earlier, though some attributed the move to an oversold rally and suggest that it is too early to suggest the banking turmoil is over.

“This oversold rally we are currently seeing has alot of potential firepower behind it, but it is too early to confirm that we have seen the final lows to this banking crisis,” Jennery Montgomery Scott.

The economic front also helped lift sentiment on risk assets including stocks after the U.S. created more jobs than expected in April, stoking hopes the U.S. may be able to avoid a severe and long recession.

Nonfarm payrolls increased 235,000 in April, well above consensus expectations for 180,000 new jobs, though there were downside revisions to the prior March and February jobs reports.

The unemployment rate unexpectedly fell by 0.1% to 3.4%, while wages rose 0.5% for the month, topping estimates for 0.3%, pointing to the ongoing risk of a wage-led boost to inflation that will likely encourage the Fed to persist with higher for longer rates.

“On balance, the data suggest the soft landing we expect this year is achievable,” Morgan Stanley said in a note.

Elsewhere on the earnings front, LYFT Inc (NASDAQ:LYFT) fell 19% as wider than expected loss and softer guidance stoked bearish bets on the stock.

This was the riding-hailing company’s maiden results since David Risher was appointed CEO, with some on Wall Street insisting Risher would need to implement more cost cuts and price hikes to improve margins.

“Lyft can eventually pass along more insurance costs and inch up pricing without losing share, we could see a path to significant margin improvement,” {{0UBS said in a note.

Coinbase (NASDAQ:COIN), meanwhile, rose 18% after the cryptocurrency platform reported better-than-feared quarterly results, driven by cost cuts and subscriber strength.

Carvana Co (NYSE:CVNA) was also among the biggest gainers, up 24%, after the used car retailer said it was ahead of plans to reach positive adjusted profit during the second quarter.

But not everyone on Wall Street is cheering the results and continue to view the company as a show me story,

“Value for the equity is limited unless the company can continue to show a rapid improvement in profitability beyond 2Q23; as we believe this is unlikely, we continue to continue to rate CVNA underperform,” Wedbush said in a note.

Latest comments

fake job numbers. they purposely estimated low, just like the month before to make you think it's positive. I don't believe anything from this administration.
factfree baseless slander..
Paranoid. Why revise the numbers then if accuracy was not the intention?
iPhone and iPhone 😎
massive sellothon may embark its massive journey next week.
I wasn't just because of Apple.
iPhone addiction!
Nice spin..the DJ has no reason to be up over 500points today. The party must go on as Bank-Runs Continue: and Deposit Outflows Top $360 Billion In Last 3 Weeks
whatever fed claims to do are not working. inflation will go higher even faster due to ridiculous stock mkt pumping like today.
easy, next week will catch up. Its battle of the beasts. American bull vs. Russian bear xa ha
A better jobs report means higher interest rates for longer.
another day of complete nonsense. A company that hasn't shown positive results since it started pumped on just a promise it will eventually. While a company that gives people a virtual currency with no monetary backing pumps. While a company that is only improving in locations outside the US showed positive results.
Hope market manipulators take some break !!
Who are the manipulators you speak of?
the masters, alians using AI to manipulate 😂
Looks green to me
Dow started Monday at ~34.2k
They're being coy..pretending today's rally was warranted but not enough..weasels
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