CNBC Business News Update - Market Midday: Stock Rally, Solid Jobs Report, Apple Shares Higher, Pilot Truck Stops Upgrading Locations 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. Stocks are soaring on Wall Street this afternoon on the April jobs report and a pullback in bond yields. The Dow up 437 points. The S&P 500 index up 59 points. That's more than 1%. The Nasdaq is soaring 310 points. That's almost 2%. The major average is all on pace for a winning week now.

Companies whose shares hit fresh all-time highs today include Goldman Sachs, Energy Energy, and Helmet Aerospace. Fewer new jobs were created in April than expected. 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 love this. It's a good number. I'll tell you why. Because what we want to do is come down to what is believed to be a more sustainable rate. In any other month outside of this sort of crazy post-pandemic gyrations we've had, 175 would be a good number.

It's also a good number in the sense that I think the Fed does want to see some weakening to a not weak number. And that's where we are. CNBC senior economics reporter Steve Leisman. Here's Harvard economist Jason Furman on CNBC. This looked to me like a Goldilocks report. I'm not at all surprised about how happy the market is. That's still a 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. Investors love that slower wage growth number today because as people work and keep making more money, they keep spending more, and that holds up inflation. This new report means the Fed could be closer to cutting interest rates, and that's ultimately what investors want. Apple shares were up 6 percent. Quarterly revenue dropped. iPhone sales slipped by 10 percent. But investors really like the biggest ever in history

for any company, stock buyback announcement at $110 billion. It means fewer shares will be out there for the public to buy, pushing up the stock price. Drug maker Amgen shares leading the Dow higher in late morning trading. They're up 12% on positive results from its experimental obesity drug, Meritide. It's scrapping the pill form, but sticking with the injection. Berkshire Hathaway owned Pilot Truck Stops. 800 locations in 44 states, making some big improvements. That's in a billion dollars to upgrade 400 of those locations to bring them into the future, bringing our showers up to date. We do over 70,000 showers a day.

Because this is where truckers pull in. They're going to come in, have a meal, get refueled, take a shower, refresh. Exactly right. Pumps, parking lots for putting in EV chargers is going to be welcomed by EV owners. We see a 40 to 50 percent increase in charging sessions on weekends and holidays. So that says EV owners want to take their EVs from urban settings and take them across country. Pilot CEO Adam Wright with CNBC's Becky Quick. The Phillies are running today in the Kentucky Oaks at Churchill Downs ahead of tomorrow's Kentucky Derby.

Jessica Ettinger, CNBC. CNBC is your ticket to Omaha, Nebraska for the annual Berkshire Hathaway meeting. Watch live on air, online, or app. Warren Buffett meets with shareholders. Plus their questions, his answers. Begins 9.30 Eastern, Saturday.