Thursday, May 2nd, 2024
Major market indices closed higher on Thursday, May 2nd, 2024, following a mixed performance earlier in the week. The Dow Jones Industrial Average gained 322 points, or 0.85%, the S&P 500 rose 0.91%, the Nasdaq Composite climbed 1.51%, and the Russell 2000 jumped 1.57%.
Apple reported its fiscal Q2 earnings after the market close, exceeding analysts' expectations with earnings of $1.53 per share and revenue of $90.75 billion. Despite iPhone sales falling slightly below estimates and year-over-year, the company announced a massive $110 billion share buyback program and increased its dividend yield to 25 cents per share. Apple's stock price surged 3.5% in after-hours trading.
Block and Coinbase also reported strong earnings after the market close. Block surpassed expectations with earnings of 85 cents per share and revenue of $5.96 billion, driven by a 25% year-over-year increase in its Cash App gross profit. Coinbase's earnings more than quadrupled to $4.40 per share, exceeding estimates, while revenue reached $1.64 billion. However, Coinbase's stock price fell 3% despite the positive earnings report.
Booking Holdings and Expedia both reported strong Q1 earnings, reflecting the continued recovery in the travel industry. Booking's earnings reached $20.39 per share, exceeding expectations, while Expedia swung to positive earnings of 21 cents per share. However, Expedia's stock price fell 7% after the company lowered expectations for its VRBO unit in the coming quarter.
The U.S. government's Employment Situation report is scheduled for release on Friday, May 3rd, 2024. Expectations are for 240,000 jobs to have been added in April, down slightly from March but still exceeding the number needed to account for retiring Baby Boomers. A significant negative surprise in the labor market could potentially influence the Federal Reserve to consider interest rate cuts sooner than expected.