Stock Market News for May 8, 2023
Wall Street closed sharply higher on Friday, with bank stocks rebounding from their recent lows, Apple posting better-than-expected earnings and jobs data for April hinting at a resilient labor market. All three major indexes ended in positive territory to end a four-day losing streak.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 1.7% or 546.64 points to end at 33,674.38 points to record its best single-day percentage gain since Jan 6.
The S&P 500 climbed 1.8% or 75.03 points to close at 4,136.25 points. Tech, financials and energy stocks were the biggest gainers.
The Technology Select Sector SPDR (XLK) and the Financials Select Sector SPDR (XLF) each gained 2.5%. The Energy Select Sector SPDR (XLE) rose 2.7%. All 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq rose 2.2% or 269.01 points to finish at 12,235.41 points.
The fear-gauge CBOE Volatility Index (VIX) was down 14.44% to 17.19. Advancers outnumbered decliners on the NYSE by a 4.95-to-1 ratio. On Nasdaq, a 2.75-to-1 ratio favored advancing issues. A total of 10.57 billion shares were traded on Friday, lower than the last 20-session average of 10.70 billion.
Apple Drives Market Rally
Stocks rebounded on Friday after four straight days of losses despite jobs data for April coming in stronger than expected, which hinted at a resilient labor market.
Market participants have been concerned over the ongoing turmoil in regional banks which started with the failure of the First Republic Bank earlier this week. The Fed forcibly auctioned the bank which was taken over by JPMorgan Chase & Co. (JPM).
This saw volatile trading on the first four days of the week. However, Apple, Inc.’s (AAPL) quarterly result helped lift investors’ sentiment after the iPhone maker reported better-than-expected earnings. Apple reported second-quarter fiscal 2023 earnings of $1.52 per share, beating the Zacks Consensus Estimate of $1.44 per share.
The company posted revenues of $94.84 billion for the quarter, surpassing the Zacks Consensus Estimate by 1.63%. Apple has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The robust earnings from Apple sent tech stocks on a rally, with the tech giant’s shares jumping 4.7%. shares of Netflix, Inc. (NFLX) gained 0.6%, while Microsoft Corporation (MSFT) rose 1.7%.
The upbeat sentiment also helped the battered regional bank stocks rebound on Friday. Shares of Western Alliance Bancorporation (WAL) soared 49.2%, while Zions Bancorporation, National Association (ZION) surged 19.2%. However, the biggest gainer was PacWest Bancorp (PACW), which soared 81.7%.
In economic data released on Friday, April jobs data showed that the U.S. economy added a solid 253,000 jobs, surpassing estimates of 180,000. Annual wage growth increased 4.4% in April, higher than the 4.2% jump in March. Also, the unemployment rate fell to 3.4% from 3.5% recorded in the prior month.
Despite the rebound, the Dow ended the week 1.2% lower, while the S&P 500 was down 0.8%. The Nasdaq managed to end the week up 0.1%.
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JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Microsoft Corporation (MSFT) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Zions Bancorporation, N.A. (ZION) : Free Stock Analysis Report
Western Alliance Bancorporation (WAL) : Free Stock Analysis Report
PacWest Bancorp (PACW) : Free Stock Analysis Report
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