In one of the least volatile sessions in recent weeks, the S&P 500 index futures adhered to its propensity to finish the week on the highs or lows. In this case, it was the highs.
Before April’s jobs report was released at 8:30am EDT, Apple Inc.’s (NASDAQ: AAPL) Q2 earnings report released after hours Thursday already gave the premarket session a lift, with the index futures staying well in the green. Once released, the jobs report included that only 175,000 jobs were added in April, compared to 240,000 expected. In addition, unemployment rose to 3.9% compared to 3.8% expected, and hourly wages grew 0.2% (MoM) compared to 0.3% expected.
The jobs data gave the bulls a reason to think rate cuts may come sooner than previously expected, and the index futures immediately surged by about 50 handles. The bulls were able to hold onto most of the gains by the opening of the regular session as well. Once the opening bell rang, the bulls and bears battled it out. As Fed Governor Michelle Bowman began her speech at 9:45am EDT, the bulls started to take hold and pushed past the premarket high. The bulls couldn’t hold onto those gains, however, as the bears followed up, taking the index futures sharply lower to new intraday lows.
Support was found at Wednesday’s high (5126.75), and was tested several times by the bears. Once it was clear support would hold, the bulls started to gain some ground just before the lunch hour commenced. The rally continued, though it slowed to a choppy crawl for the afternoon. Neither the bulls nor the bears were able to instigate a sharp move in the final minutes of the regular session either.
The day concluded near the premarket high, gaining a healthy 63.25 handles to close at 5154.75. For the week, that makes for a gain of 23.25 handles or 0.45%.
Among the top components of the index, Apple Inc (NASDAQ: AAPL) emerged as the biggest gainer. Among a top and bottom line beat for Q2, the company also announced $110B in share buybacks, helping to boost their numbers. The tech titan was able to advance by $10.35 or 5.98% to close at $183.38 for the day.
That performance beat the cash index’s advance of 1.24% over fourfold.
The biggest loser for the second day in a row was Eli Lilly And Co (NYSE: LLY). One of the company’s competitors, Amgen Inc. (NASDAQ: AMGN) released strong earnings after the close Thursday, which included progress on a weight-loss drug which could be competitive against Eli Lilly’s offerings. For the day, Eli Lilly’s stock declined by $20.94 or 2.77% to close at $734.97.
