US Stock Futures Indicate Further Strength on Wall Street

Apple's Record Buyback Announcement and Solid Earnings Boost Futures

Ahead of the April jobs report, US stock futures are pointing towards further strength on Wall Street. This comes after Apple's record buyback announcement and solid earnings. As of 8:00am, S&P futures have risen by 0.3%, while Nasdaq 100 contracts have added 0.6%, thanks to a 6% surge in Apple in premarket trading. The dollar has weakened for a third day, while Treasuries have remained steady. The US 10-year yield is down about 9 basis points this week at 4.57%, marking its first weekly drop since March. This comes after Powell struck a less hawkish tone than feared. Traders have also pulled forward expectations for the Fed’s first full interest-rate cut by a month to November.

Apple's Stronger-Than-Expected Sales Boost Premarket Trading

In premarket trading, Apple jumped .2% after the company posted stronger-than-expected sales last quarter and predicted a return to growth in the current period. This has sparked optimism that a slowdown is easing. Amgen soared 14% after its CEO said he was “very encouraged” by early results from a study of the company’s experimental obesity drug, MariTide. Other notable premarket movers include Alignment Healthcare, Ardelyx, BigBear.ai, Block, Cloudflare, Fortinet, FuboTV, ImmunityBio, Live Nation Entertainment, OneSpan, Open Text, and WideOpenWest.

Jobs Report to Provide Clues About Economy's Health

Traders will be watching this morning's jobs report for clues about renewed slowing in the economy. Non-farm payrolls data is the next big trigger for markets after Federal Reserve chief Jerome Powell effectively laid concerns about a potential rate hike to rest. The forecast gain of 240,000 jobs would be the weakest since November.

European Stocks Track Tech-Driven Rally in Asia

European stocks have tracked a tech-driven rally in Asia after Apple forecast a return to sales growth and announced the largest stock buyback plan in US history. The Stoxx 600 is up 0.4% as it looks to snap a three-day losing streak. While tech stocks led gains, pharmaceuticals lagged with Novo Nordisk A/S retreating more than 5% on competition concerns.

Conclusion

The recent surge in US stock futures, boosted by Apple's record buyback announcement and solid earnings, is indicative of the strength of the US economy. However, the upcoming jobs report will provide further insight into the health of the economy. What do you think about these developments? Share this article with your friends and sign up for the Daily Briefing, which is every day at 6pm.