CNBC Business News Update - Market Open: Stocks Rally on Goldilocks Jobs Report, Amgen Soars On Weight Loss Drug, Chicken Supply Warning 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. On the April jobs report, the Dow out of the gate up 534 points, 1.5%. The S&P 500 index up 62 points, 1.25%. And the Nasdaq soaring 304 points, almost 2%. The major averages now all higher for the week. Fewer new jobs were created in April than expected. April non-farm payrolls expanded much less than expected. One hundred and seventy five thousand. We're looking for a number much closer to two

hundred and fifty thousand. 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 up 7% out of the gate. The company says revenue was down 4% in the last quarter. iPhone sales dropped 10% in the last quarter, but investors really like the biggest ever in history for any company stock buyback announcement at $110 billion.

This, of course, means fewer shares will be out there for the public to buy, pushing up the stock price. Drug maker Amgen shares were soaring after the company said it's very encouraged by early results from a study of the company's experimental obesity drug. It's called Meritide. The pills apparently weren't so great, so they're focusing on an injection to compete with Ozempic, Wegovy, Manjaro, and more. The NBA is said to be close to a new $76 billion TV rights deal with Disney's ESPN and Amazon, plus a third deal with either Warner Brothers Discovery and CNBC parent Comcast, which owns NBC Sports. A chicken supply warning today, as Pilgrim's Pride says an

unusually high number of incubated eggs are not hatching. Chicken prices could go up if fewer birds are produced. The Phillies are running today in the Kentucky Oaks at Churchill Downs, ahead of tomorrow's Kentucky Derby. New in theaters, Screen Gems horror film Tarot, and Universal's The Fall Guy. Universal is a sister company to CNBC. 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.