Nasdaq Futures Climb on Upbeat Apple Results, U.S. Jobs Report in Focus

June Nasdaq 100 E-Mini futures NQM2024 are trending up +0.56% this morning as market participants cheered forecast-beating quarterly results from tech giant Apple and looked ahead to critical U.S. non-farm payroll data due later in the day.

Apple AAPL advanced over +5% in pre-market trading after the iPhone maker reported better-than-expected Q2 results, projected a return to growth in the current quarter, and raised its dividend by 4.2% to $0.25 per share. The tech giant also unveiled a $110 billion share buyback program, the largest stock buyback in U.S. history.

In yesterday’s trading session, Wall Street’s major indexes ended in the green. Howmet Aerospace HWM surged over +15% and was the top percentage gainer on the S&P 500 after the maker of jet-engine parts reported stronger-than-expected Q1 results and raised its full-year revenue guidance. Also, Moderna MRNA climbed more than +12% and was the top percentage gainer on the Nasdaq 100 after the company posted a narrower-than-expected Q1 loss. In addition, Qualcomm QCOM advanced over +9% after the world’s biggest seller of smartphone processors posted upbeat Q2 results and offered solid Q3 guidance. On the bearish side, Etsy ETSY plunged more than -15% and was the top percentage loser on the S&P 500 after reporting weaker-than-expected Q1 gross merchandise sales. Also, DoorDash DASH slumped over -10% and was the top percentage loser on the Nasdaq 100 after the food delivery firm provided a below-consensus Q2 adjusted EBITDA forecast.

The Labor Department’s report on Thursday showed that the number of Americans filing for initial jobless claims in the past week remained unchanged at 208K, stronger than expectations of 212K. Also, U.S. Q1 nonfarm productivity rose +0.3% q/q, weaker than expectations of +0.8% q/q, while U.S. Q1 unit labor costs climbed +4.7% q/q, stronger than expectations of +3.6% q/q. In addition, U.S. factory orders rose +1.6% m/m in March, in line with expectations and the biggest increase in 4 months.

Meanwhile, U.S. rate futures have priced in a 14.2% chance of a 25 basis point rate cut at the next central bank meeting in June and a 31.9% probability of a 25 basis point rate cut at the July FOMC meeting.

On the earnings front, notable companies like Hershey HSY, Cheniere Energy LNG, and Magna International MGA are set to report their quarterly figures today.

Today, all eyes are focused on U.S. Nonfarm Payrolls data in a couple of hours. Economists, on average, forecast that April Nonfarm Payrolls will come in at 238K, compared to the previous value of 303K.

A survey conducted by 22V Research revealed that 30% of the polled investors anticipate a “risk-on” reaction to the jobs report, 27% expect a “risk-off” reaction, and 43% said “mixed/negligible.”

Also, investors will likely focus on the U.S. ISM Non-Manufacturing PMI, which stood at 51.4 in March. Economists foresee the April figure to be 52.0.

U.S. Average Hourly Earnings data will be closely watched today. Economists expect April’s figures to be +0.3% m/m and +4.0% y/y, compared to the previous numbers of +0.3% m/m and +4.1% y/y.

The U.S. S&P Global Composite PMI will be reported today. Economists foresee this figure to arrive at 50.9 in April, compared to March’s figure of 52.1.

The U.S. S&P Global Services PMI will come in today. Economists anticipate April’s figure to be 50.9, compared to 51.7 in March.

The U.S. Unemployment Rate will be reported today as well. Economists foresee this figure to remain steady at 3.8% in April.

In addition, market participants will be anticipating speeches from Chicago Fed President Austan Goolsbee and New York Fed President John Williams.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 4.577%, up +0.20%.

The Euro Stoxx 50 futures are up +0.45% this morning as investors digested the latest corporate earnings while also awaiting the release of the crucial monthly U.S. jobs report. Gains in technology stocks are leading the overall market higher on Friday following Apple’s solid quarterly results and a record share buyback. Data showed on Friday that France’s industrial output unexpectedly fell in March compared to the previous month. Separately, Eurostat reported on Friday that the Eurozone’s unemployment rate remained unchanged at 6.5% in March. Meanwhile, European Central Bank Governing Council member Yannis Stournaras stated in an interview with a Greek media outlet that the central bank is “most likely” to lower borrowing costs three times this year instead of four, citing stronger-than-expected economic growth supporting inflation. In corporate news, Societe Generale GGLE climbed over +4% after the French bank reported a smaller-than-expected decline in Q1 net income. In addition, Credit Agricole ACA gained more than +4% after the French second-biggest listed bank posted a forecast-beating 55% jump in Q1 net profit.

France’s Industrial Production and Eurozone’s Unemployment Rate were released today.

The French March Industrial Production came in at -0.3% m/m, weaker than expectations of +0.3% m/m.

Eurozone March Unemployment Rate was at 6.5%, in line with expectations.

Markets in Japan and mainland China were closed for the holidays.

China’s Shanghai Composite Index was closed for the Labor Day holiday. Mainland China’s financial markets will reopen on Monday.

Japan’s Nikkei Stock Index today was closed for the Constitution Day holiday. The markets will reopen on Tuesday.

Pre-Market U.S. Stock Movers

Apple AAPL advanced over +5% in pre-market trading after the iPhone maker reported better-than-expected Q2 results, projected a return to growth in the current quarter, and raised its dividend by 4.2% to $0.25 per share. The tech giant also unveiled a $110 billion share buyback program, the largest stock buyback in U.S. history.

Block SQ climbed more than +7% in pre-market trading after the payment and fintech app company reported upbeat Q1 results and raised its full-year guidance.

Amgen AMGN surged more than +13% in pre-market trading after the biotech giant reported stronger-than-expected Q1 EPS and provided an update on its experimental obesity drug, MariTide. “We are confident in MariTide’s differentiated profile and believe it will address important unmet medical needs,” the company’s CEO Robert Bradway said on a call with investors.

Booking Holdings BKNG rose more than +1% in pre-market trading after reporting better-than-expected Q1 gross bookings.

Cloudflare NET plunged over -14% in pre-market trading after the company issued Q2 and full-year guidance that failed to impress investors.

Today’s U.S. Earnings Spotlight: Friday – May 3rd

CRH (CRH), Hershey Co (HSY), TC Energy (TRP), Cheniere Energy (LNG), Cboe Global (CBOE), Corebridge Financial (CRBG), Trimble (TRMB), Magna Intl (MGA), XPO (XPO), Plains All American Pipeline (PAA), nVent Electric (NVT), Brookfield Renewable (BEP), Fluor (FLR), Frontier Communications Parent (FYBR), Essent Group Ltd (ESNT), Balchem (BCPC), Plains GP Holdings (PAGP), Brookfield Business (BBU), Adient (ADNT), Arbor (ABR), Atmus Filtration Tech (ATMU), Newmark Group (NMRK), Tennant (TNC), TransAlta Corp (TAC), Amneal Pharma (AMRX), Owens&Minor (OMI), Telephone&Data Systems (TDS), Perella Weinberg Partners (PWP), Uniti Group (UNIT), Green Plains Energy (GPRE), Koppers (KOP), Interface (TILE), American Axle&Manufacturing (AXL), Proto Labs (PRLB).

On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.