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U.S. stocks were rising after Apple beat earnings expectations

Published 05/05/2023, 10:14 PM
© Reuters.
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Investing.com -- U.S. stocks jumped after Apple Inc. (NASDAQ:AAPL) posted stronger-than-expected results on strong iPhone sales.

At 9:56 ET (13:56 GMT), the Dow Jones Industrial Average was up 422 points, or 1.3%, while the S&P 500 was up 1.2% and the NASDAQ Composite was up 1.2%.

The report from Apple overcame any concerns from a stronger-than-expected report on jobs for April. Shares of Apple rose 4.4%.

U.S. companies added 253,000 jobs last month, more than the 180,000 analysts expected. The unemployment rate fell to 3.4%, also unexpected. The data point to resilient labor sector strength that could encourage the Federal Reserve to keep interest rates higher for a longer period of time.

Futures traders have been betting that the Fed will pause its interest rate increases in June while it assesses the progress its actions have taken thus far to cool inflation. The Fed raised rates this week by another quarter of a percentage point.

Rapidly rising rates in the past year have raised concerns about the banking system, as regional banks get squeezed by higher rates that are attracting deposits to products that offer customers higher yields. PacWest Bancorp (NASDAQ:PACW), which has been under pressure this week, rebounded on Friday. Shares were up over 46%, and shares of Western Alliance Bancorporation (NYSE:WAL) rose over 30%.

Shares of online used car dealer Carvana (NYSE:CVNA) jumped 31% after saying it expects to record a profit in the current quarter.

Shares of ride-hailing company LYFT Inc (NASDAQ:LYFT) fell 18.9% on concerns its price war with rival Uber Technologies (NYSE:UBER) could eat into its profit margin.

Oil was rising. Crude Oil WTI Futures was up 4.1% to $71.41 a barrel, while Brent Oil Futures was up 3.8% to $75.27 a barrel. Gold Futures fell 2.2% to $2,011.

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