The Market News Today: April Jobs Report to Show Solid Growth

April Jobs: Solid Growth, Fed Watch Intensifies

April’s nonfarm payrolls are expected to show a solid gain of 240,000 jobs, holding the unemployment rate steady at 3.8%. The job additions slightly lag behind 2024’s average but demonstrate ongoing strength in health care and hospitality. Average hourly earnings are projected to grow by 0.3% monthly, with an annual increase of 4%. Persistent job growth and higher-than-target inflation continue to challenge the Fed, potentially delaying any interest rate cuts.

Stock Futures Climb Ahead of Jobs Report

Stock futures rose sharply Friday, buoyed by positive corporate earnings and anticipation for the April jobs report. Dow Jones futures are up 271 points, with similar upticks in S&P 500 and Nasdaq futures. Apple’s post-earnings surge over 7% and Amgen’s 14% jump contrasted with Cloudflare’s 14% drop due to poor revenue guidance. Despite recent gains, major indexes may still end the week lower. Investors remain cautious as the Fed signals no immediate rate cuts despite stable inflation and job growth.

Apple Shares Surge on Record Buyback

Apple’s shares soared 7% after hours as the tech giant surpassed fiscal Q2 earnings expectations and unveiled a record $110 billion buyback program, a 22% increase from last year. Despite a robust buyback announcement, Apple reported a 4% drop in overall sales and a 10% decline in iPhone sales year-over-year, attributing the decrease to challenging comparisons from the previous year. This mixed financial performance highlights significant investor confidence amidst broader sales challenges.

Coinbase Surges on Q1 Revenue Beat

Coinbase exceeded Q1 revenue expectations, posting $1.64 billion against the predicted $1.34 billion, fueled by a bitcoin rally that drove net income to $1.18 billion. Earnings per share hit $4.40, a stark turnaround from last year’s loss. Transaction revenues nearly tripled, reflecting heightened trading activity. Despite a post-report dip, Coinbase’s stock has risen significantly year-to-date, buoyed by new institutional investments and partnerships with U.S. spot bitcoin ETFs.

Treasury Yields Tick Higher as Jobs Data Looms

U.S. Treasury yields increased slightly on Friday, as investors awaited the April jobs report, seeking signs of economic resilience or weakening that could influence Federal Reserve policies. Although the report is anticipated to reflect some slowdown in job growth, the focus remains on the Fed’s response, especially after it maintained interest rates earlier this week, emphasizing the need for more evidence of inflation control before considering rate reductions. This has heightened investor interest in the labor market’s impact on future rate decisions.