CNBC Business News Update - Market Close: Stocks Rally on Solid Jobs Report + Falling Bond Yields, Healthcare Hires Big, Apple Shares Best Day Since Nov. '22 5/3/24

Episode Date: May 3, 2024

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored and reported by CNBC's Jessica Ettinger.

I'm Jessica Edinger, CNBC. Wall Street opens Monday morning after a Friday rally on a solid jobs report and falling bond yields. The Dow soared 450 points Friday, up more than 1% at 38,675. The S&P 500 index up 63 points, 1.25% above 5,100. The Nasdaq up 315 points, just about 2%. Everything's working along the way that you perhaps want to see it to keep this a routine pullback within a bull market. We're five weeks into it.

We had a 5% pullback. We're about half of that back. CNBC's Mike Santoli. Fewer new jobs were created in April than forecast. April non-farm payrolls expanded much less than expected, 175,000. We're looking for a number much closer to 250,000. CNBC's Rick Santelli. And here's why investors loved that. This looked to me like a Goldilocks report. I'm not at all surprised about how happy the market is. Very healthy pace of job growth. One of the most important data points in this was average hourly earnings.

That growth coming in lower than expected after some of the concerns raised about wage growth and its inflationary impact. The bottom line is this report is quite reassuring. And if we have 170,000 jobs a month for the rest of time, a 3.9% unemployment rate for the rest of time, and inflation comes down, you know, I think we'd all be thrilled out of our minds. Harvard economist Jason Furman on CNBC. So where were the jobs created in April? Healthcare was the leading place where jobs were. It has been a perennial leader there, up 56,000. Retail doing quite well. They're up 20,000. CNBC senior economics reporter Steve Leisman. Apple investors sent shares up 6% Friday. They had their best day in about a year and a half. Even after some weak

quarterly numbers, investors love the stock buyback. It's the biggest share buyback ever and the biggest in the history of corporate America. That is $110 billion. It's the biggest share buyback ever and the biggest in the history of corporate America. That is $110 billion. It's also increasing its dividend. But when it comes to the business of making money, Apple says overall sales fell 4% year on year and iPhone sales fell more than 10%. CNBC's Pippa Stevens. Starbucks shares are tanking after disappointing quarterly results. Some investors bailing on the stock, which is down 30% over the past 12 months. Starbucks used to be the end-all, be-all for to-go quality coffee. There weren't a lot of competitors.

Now you have Dunkin' that's focusing more on coffee. McDonald's has a huge coffee brand. And then you have smaller brands like Dutch Bros. And then you have Tim Hortons moving more into here. How do you grow money here if your consumer can't pay more for coffee? And there is a lot of competition at reasonable prices. For me, I just can't do it. G Squared's Victoria Green on CNBC.

Teen retailer Rue 21 filed for Chapter 11 bankruptcy. It's closing all of its 500 stores. Reuters says it's set to hold large going-out-of-business sales, according to bankruptcy court documents. On the coming week's watch list, earnings season rolls on with reports coming from Disney, Lyft, Reddit, Uber, TripAdvisor, Krispy Kreme, Papa John's, Honda, Warner Brothers Discovery, and more. It's a pretty quiet week for economic data, but we get the latest on consumer credit as people take on more debt.

Boeing hoping to launch a crude NASA rocket on Monday. Apple holding a big iPad product event on Tuesday. Jessica Ettinger, CNBC. Earnings season, the quarterly numbers as they break. The scorecard for the American economy. Earnings season on CNBC.