The Buzz on Business for May 3rd, 2024

Given the small but not insignificant policy change from the Federal Reserve Open Market Committee at the conclusion of their meeting on Wednesday and the markets’ dramatic response to it, we expected some heated commentary and perhaps more drama from stocks and bonds.

We were wrong. It seemed like traders went back to business as usual and market commentators were out looking for the next story.

We hope they’re right.

Stock Market Report

Stocks opened lower in the aftermath of the Fed meeting on Wednesday and the crazy trading that followed it. They opened lower but closed higher and on good volume. This lower-low, higher-close pattern is known as a bullish reversal. Could it signal a resumption of the rally that’s been on hold since April 1^st?

• The Dow Jones Industrials were up 322 points. That’s nine-tenths of 1%. They closed at 38,226.
• The S&P 500 was up 46 points, that’s nine-tenths of 1% and they closed at 5,064.
• The NASDAQ Composite had a good day. It was up 1 1/2%. That’s 235 points, and it closed at 15,841.
• And the Russell 2000 had an even better day. It was up 1.8 percent, 36 points, and closed back above 2,000 at 2,016.

Bond Market Report

As we’ve mentioned previously on this podcast, we get our interest rate data from two different sources. Normally, they line up perfectly. They did not yesterday. So, with that caveat out of the way.

• The yield on the 2-year treasury was down eight basis points, and it closed at 4.885%.
• The 20-year was down three ticks, and it closed at 4.832%.

Oil, Gold, and Bitcoin

• Oil continued its recent correction. It was down $0.12, and a barrel will now set you back $78.93.
• Gold had a small loss. It was down $8.40 and close to $2,312.40.
• Bitcoin had its first gain in five days. It was up $2,388.00 even and closed at $59,442.60.

Good Earnings News Continues

Dozens and dozens of companies reported earnings during the day on Thursday. Virtually all of them exceeded expectations. Interestingly, those that missed seem to miss only by a penny or two, for the most part.

Apple earned $1.53 per share in the first quarter versus $1.50 expectations. It also exceeded its revenue target by about a half-billion dollars. Along with its earnings report, Apple announced a huge $110 billion stock buyback. Expect the stock to rally during the day today.

Unemployment Claims Below Expectations: Prelude to the Employment Report?

Initial and continuing jobless claims both came in better than expected. The unemployment numbers have been trending higher over the last two years but seem to be falling over the last three months or so. Good news indeed from the labor market.

Not much coming out today on the earnings calendar, but we do get the employment report for April. Average hourly earnings, Nonfarm payrolls, the labor force participation rate, and the unemployment rate for April will all be released at 8:30 Eastern Time this morning.

We will be watching all of it carefully so we can report it to you bright and early Monday morning here on the Buzz.