Dow up more than 300 points
TSX boosted by energy stocks
Stericycle and CBS end the day as top gainers
The U.S. benchmarks had a good start to the weekend with the Dow climbing more than 300 points by the closing bell.
The Nasdaq jumped more than 100 points, boosted by Apple’s rally.
The S&P 500 saw slight gains as well, ending the day about 30 points higher.
The TSX was up more than 100 points, lifted by energy stocks.
Stericycle Inc (NASDAQ:SRCL) was one of the top gainers of the day with shares rising more than 8% to US$63.84 after reporting its first quarter results. The waste disposal company surpassed Wall Street estimates on earnings and revenue, citing its acquisition strategy and the benefits received from U.S. tax reform.
CBS Corporation (NYSE:CBS) saw its shares jump more than 9% to US$53.17 following its first quarter report. The New York-based media corporation beat consensus estimates on earnings and revenue, spurred by strong advertising growth.
Fluor Corporation (NYSE:FLR) was a top decliner of the day after a disappointing first quarter led to analyst downgrades. The Texas-based engineering and construction company missed estimates on earnings and revenue, lowering its full year guidance. Cannacord Genuity analysts downgraded the shares to a Hold from a Buy. Shares were down more than 20% to US$45.76.
Shares of Express Scripts Holding Co (NASDAQ:ESRX) fell as well amid concerns about the pharmacy benefit management company being acquired by Cigna Corporation (NYSE:CI). Investors have been wary of the acquisition being heavily scrutinized by regulators. Express Scripts’ shares fell more than 2% to US$70.22 while shares of Cigna fell around 1% to US$171.17.
Afternoon trade:
US stocks edged even higher in early afternoon trade as optimism about the April job reading gathered pace.
By noon, the Dow had added 252 points to 24,181 while the S&P 500 rose 25 points at 2,654 and the tech-heavy Nasdaq was up 95 points at 7,184.
Up in Toronto, the TSX was up 23 points at 15,644.6.
Apple managed to hit an all-time high, pushing the Nasdaq higher and jumping 3.5% to US$182.98 after Warren Buffett disclosed in a CNBC interview that Berkshire Hathaway purchased 75mln shares in the first quarter.
Davita, the US health care company, was also up 6.7% due to strong 1Q earnings and CBS, the television powerhouse now in difficult merger talks with Viacom, also rose 5.5% after topping revenue and profit estimates.
Joining the list of laggards, meanwhile was Nektar Therapeutics, a biopharmaceutical company, which dropped 8.74% ahead of its quarterly results next week.
Spotify shares also shed 2%, weighed down by this week's announcement that its net loss in the first quarter totaled €161mln.
Morning trade:
US benchmarks finished the week by opening in the red, but then switched into positive territory in the first hour of trading, as investors digested an April job reading which showed that growth in workers’ wages was sluggish despite employers adding 164,000 jobs.
An hour into the session, the Dow was up 51 points at 23,981 while the S&P 500 added 5 points to 2,635 and the tech-heavy Nasdaq rose 35 points to 7,122. Up in Toronto, the TSX added 23 points to 15,645.
Hiring in the US gathered pace in April, with the unemployment rate dipping below 4% for the first time since 2000 to 3.9%. The average hourly pay for workers, however, inched up just 0.1% from March and was down 2.6% on a year-on-year basis.
Apple shares were up 3.5% on the revelation that Warren Buffett purchased 75mln shares during the first quarter.
Also trading higher was Stericycle, a medical waste management company, which was up 9.4% after reporting 1Q results which trounced market expectations.
Shares of Fluor Corporation, the engineering and construction company, plunged 21%, meanwhile, pulled back by a first-quarter loss and a slashing of its profit expectations for 2018.
The euro was down 0.3% against the US dollar at US$1.1948 while the pound is down 0.4% at US$1.3522. A barrel of West Texas Intermediate oil was up 0.5% at US$68.78.
Pre-market trade:
The April jobs figures did no favors to US equities, with the main indexes now expected to open even lower than previously expected.
Spread betting quotes indicate the Dow Jones will open at around 23,870, versus an expected opening level of 23,919 prior to the release of the jobs data.
The S&P 500, previously tipped to open its account at around 2,627.7, is now expected to start at around 2,624.4.
The unemployment rate fell to 3.9% for the first time since 2000 as non-farm payrolls grew by 164,000 in April.
Economists had expected around 190,000 jobs to be added and the unemployment rate to fall to 4.0%.
Unemployment rate dips to 3.9 percent in April, lowest since 2000# the number that amazes me is over 95 million are out of the labor force! And a lower participation rate - only 62% are working! https://t.co/OLgB07oBiH
— Bobby Rahal (@BobRahal) May 4, 2018
Market preview
Stocks were expected to take a step back on Friday morning although that expectation might change when the April jobs reports comes out.
The headline non-farm payrolls figures is expected to see 190,000 jobs added, up from April's 103,000; the unemployment rate is predicted to decline to 4.0% and wage growth is also expected to dip, to 0.2% from April's 0.3%.
“That latter number might take the edge off the dollar given stagnant wages are a key concern of the Fed, something that might help alleviate the Dow’s recent ailments,” suggested Connor Campbell, a financial analyst at spread betting firm Spreadex.
Talking of spread betting firms, coming up to 7:00am ET, spread betting quotes were suggesting that the Dow Jones average, which edged up 5 points yesterday to close at 23,930, will open around 11 points lower at 23,919.
The broader-based S&P 500, which retreated 6 points yesterday to 2,630.7, was expected to open at around 2,627.7.
In Asia overnight, the predominant color on traders' screens was red.
In Tokyo, the Nikkei 225 closed 35 points lower at 22,473 while in Hong Kong the Hang Seng tumbled 387 points to 29,926.
In Europe this morning, the CAC 40 has been out of step in Paris, weakening a couple of points to 5,500. In London, the FTSE 100 was up 34 at 7,537 while in Frankfurt the DAX was 52 points better at 12,743.
Eurozone data weakness persists ahead of US #NFP later today https://t.co/BcTVUEXhBv ^FR #FX https://t.co/SSLjtmNn6u
— FOREX.com (@FOREXcom) May 4, 2018
On the forex markets, the dollar index, which measures the greenback's performance against a trade-weighted basket of currencies, was up 0.08 at 86.13, despite the yield on 10-year treasuries softening to 2.935 from 2.949 overnight.
On the futures market, gold was US$1.60 cheaper at US$1,311.10 an ounce while West Texas intermediate nudged up 22 cents to US$68.65 a barrel.
Among crypto-currencies, Bitcoin was up US$25.12 at US$9,682.81.
After-hours activity from Thursday
In after-hours trading on Thursday, broadcasting giant CBS Corporation (NYSE:CBS) was a ratings hit with its quarterly numbers.
Revenue and profits both topped analyst's estimates, prompting a 2.2% increase in the stock price to US$49.80.
Fast-food restaurants operator Shake Shack Inc (NYSE:SHAK) jumped 8% in screen-based trading to US$51.20 after it raised full-year guidance on the back of a strong first quarter performance.
Shake Shack and Weight Watchers may not be natural bed partners but the latter joined the former in storming higher after issuing earnings.
Weight Watchers International Inc (NYSE:WTW) jumped 8.5% to US$75.60 as subscribers to the dieting club hit a record level of 4.6mln, up 29% year-on-year.
Shake Shack serves up earnings beat, forecast boost https://t.co/E2oLJ3EwuM
— Financial Times (@FT) May 3, 2018
doctor: i have the results of your cholesterol test
me: did i pass? haha
doctor: no but you will very soon
— Patches (@Mostly_Cheese) May 3, 2018