Stocks Halt Slide as Apple Climbs Before Earnings: Markets Wrap

(Bloomberg) — The world’s biggest technology companies drove a rebound in US stocks ahead of Apple Inc.’s earnings, with Wall Street also gearing up for Friday’s jobs report.

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Equities halted a two-day drop. Nvidia Corp. led gains in chipmakers and Apple climbed 1.5%. Wall Street expects the iPhone maker to announce a stock buyback, following the steps of fellow big techs Alphabet Inc. and Meta Platforms Inc. Any news related to artificial-intelligence features could provide additional excitement.

In the run-up to the monthly employment report, data showed US labor costs jumped the most in a year as productivity gains slowed, adding to risks inflation will remain elevated. Economists surveyed by Bloomberg forecast a 240,000 gain in nonfarm payrolls, which would be the slowest pace since November.

The Fed decided Wednesday to leave the target range for the benchmark rate at 5.25% to 5.5% following a slew of data that pointed to lingering price pressures. Jerome Powell said it’s unlikely that the Fed’s next move would be to raise rates.

“While the Fed appears to have all but ruled out a rate hike, it also made clear it’s willing to keep rates higher for longer,” said Chris Larkin at E*Trade from Morgan Stanley. “The markets will be hungry for any data suggesting the economy isn’t heating up any more than it did in the first quarter.”

The S&P 500 hovered near 5,040. Qualcomm Inc., the world’s biggest seller of smartphone processors, surged on an upbeat forecast. EBay Inc. slumped on a disappointing outlook. Treasury 10-year yields were little changed at 4.63%. The dollar retreated.

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

The S&P 500 Index is expected to move 1.2% in either direction after the release, based on the cost of at-the-money puts and calls expiring Friday, according to Stuart Kaiser, Citigroup Inc.’s head of US equity trading strategy.

That figure, based on the prices of S&P straddles as of Wednesday’s close, is the largest implied swing ahead of an employment report since March 2023, he said.

Corporate Highlights:

• Peloton Interactive Inc. said Chief Executive Officer Barry McCarthy is stepping down as the company undergoes a major restructuring that will reduce its global workforce by 15% in an effort to slash costs.

• MGM Resorts International reported first-quarter sales and earnings that beat analysts’ projections, benefiting from the post-pandemic recovery in Macau and a new partnership with Marriott International Inc. that helped fill hotel rooms.

• Carvana Co. reported stronger earnings with revenue topping expectations as the company digs into its restructuring plan and regains sales momentum.

• DoorDash Inc., the largest food delivery service in the US, offered a disappointing profit forecast for the current quarter as the company invests in expanding its list of non-restaurant partners and improving efficiency.

• Moderna Inc. reported a narrower first-quarter loss than Wall Street had expected, as the biotech giant’s cost-cutting helped offset a steep decline in its Covid business.

• Apollo Global Management Inc. reported higher first-quarter profit as the firm raked in more management fees and originated a record $40 billion of private credit, a key area of growth.

Story continues

Key events this week:

• Eurozone unemployment, Friday

• US unemployment, nonfarm payrolls, ISM Services, Friday

• Chicago Fed President Austan Goolsbee speaks, Friday

Some of the main moves in markets:

Stocks

• The S&P 500 rose 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 was little changed

• The MSCI World index rose 0.5%

Currencies

• The Bloomberg Dollar Spot Index fell 0.4%

• The euro fell 0.2% to $1.0688

• The British pound fell 0.3% to $1.2487

• The Japanese yen rose 0.1% to 154.40 per dollar

Cryptocurrencies

• Bitcoin rose 2.4% to $58,651.28

• Ether rose 1.3% to $2,975.97

Bonds

• The yield on 10-year Treasuries was little changed at 4.63%

• Germany’s 10-year yield declined two basis points to 2.56%

• Britain’s 10-year yield declined five basis points to 4.31%

Commodities

• West Texas Intermediate crude was little changed

• Spot gold fell 1% to $2,296.52 an ounce

This story was produced with the assistance of Bloomberg Automation.

–With assistance from Ryan Vlastelica and Jessica Menton.

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