Dow Soars After Jobs Surprise; Apple Rockets While Warren Buffett’s Berkshire Hathaway Heads Into Earnings

Pathetic meanderings in the stock market disappeared as major indexes held on to early gains in late afternoon trades after Friday’s jobs report missed views. That lifted hopes of a rate cut sooner rather than later. Apple (AAPL) soared after it announced its biggest buyback and second-quarter results, while Warren Buffett’s Berkshire Hathaway approached the 50-day moving average ahead of its quarterly report.

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Major indexes jumped to or above the 50-day moving average in the stock market today. The Dow Jones Industrial Average gained more than 450 points, or 1.2%, in the late afternoon. Breadth strengthened, with advancers in the lead by 3-to-1 on the NYSE and more than 2-to-1 on the Nasdaq.

The economy added 175,000 jobs in April, whereas economists had expected 243,000 jobs. The unemployment rate inched higher to 3.9% vs. views of 3.8% The cooler jobs data increases the chances of a rate cut earlier. Hopes of a cut as early as July gave wings to stocks Friday.

The yield on the benchmark 10-year Treasury note plunged 6 basis points to 4.50%.

The S&P 500 gained 1.3% while the Nasdaq had a solid lead, climbing 2.1% in the stock market today and moving slight above its 50-day line. Most sectors gained, although energy declined.

Volume on the NYSE was lower and higher on the Nasdaq compared with the same time on Thursday.

The small-cap Russell 2000 gapped above its 50-day line but retreated to test the line amid a 1% gain.

The Innovator IBD 50 ETF (FFTY) rose 1.7%.

Dow Jones Stocks

Apple soared 7% after earnings beat views. The Cupertino, Calif.-based tech giant raised its dividend and announced a share buyback plan of $110 billion. It is reportedly the biggest buyback in the company’s history. Amgen (AMGN) was an even bigger gainer and led Dow stocks after its first-quarter results and progress on an obesity drug.

Other techs in the Dow fared well. Salesforce (CRM) rose 1%, while Microsoft (MSFT), up 2%, approached its 50-day moving average. Energy, finance and health stocks were mixed in the Dow.

Stocks Market Today

Earnings moved several stocks in the stock market today. MercadoLibre (MELI) soared 9% after beating first-quarter estimates. Shares have rebounded from the 50-day moving average as the stock form a base with a buy point of 1,825, according to IBD MarketSurge.

Meanwhile cryptocurrency exchange Coinbase (COIN) fell and continued to face resistance at the 50-day line after first-quarter results beat estimates. Custodial fees as well as revenue from transactions and subscriptions soared. In the digital payments industry, Block (SQ) initially rose after first-quarter results but reversed lower in afternoon trading.

DraftKings (DKNG) saw a lot of sellers as the day progressed. Shares are meeting resistance at the 50-day moving average even though first-quarter sales showed strong growth. In the IBD MarketSurge Growth 250, Tidewater (TDW) gained 13% after its earnings report.

Warren Buffett’s Berkshire Hathaway (BRKB) rose ahead of its earnings report over the weekend. Though the stock is still a ways off from a buy point, a strong rebound from the 50-day moving average after earnings could present an entry.

Meritage Homes (MTH) is trying to break out at 179.69 as lower interest rates lift homebuilders. Pulte Group (PHM) and Toll Brothers (TOL) pared some gains after gapping up.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

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