The following are the key news items that investors should be aware of before beginning their trading day:
1. Anticipating Data Releases:
Stocks surged on Thursday as investors awaited the release of crucial labor market data and digested corporate earnings reports. The Dow Jones Industrial Average soared by 322.37 points, representing a 0.85% increase, while the S&P 500 and Nasdaq Composite witnessed gains of 0.91% and 1.51%, respectively.
2. Positive Outlook on Job Growth:
The upcoming April jobs report, scheduled for release at 8:30 a.m. ET on Friday, is expected to reveal continued robust hiring trends. Projections suggest nonfarm payrolls could show an increase of 240,000 for the month, with the unemployment rate likely to remain stable at 3.8%, as per the Dow Jones consensus estimate.
3. Apple’s Record Buyback:
Apple made headlines with its announcement of the largest-ever share buyback program by a public company on Thursday. The tech giant disclosed that its board approved $110 billion for share repurchases, marking a significant 22% surge from last year’s $90 billion authorization. This news accompanied Apple’s second-quarter earnings report, which exceeded market expectations but also indicated a 4% decline in overall revenue.
4. Paramount Acquisition Talks:
The fate of Paramount remains uncertain, with Sony Pictures and private equity firm Apollo Global Management expressing strong interest in acquiring the company for $26 billion. Meanwhile, Skydance Media awaits a response from Paramount’s special committee regarding the recommendation of its acquisition bid to controlling shareholder Shari Redstone.
5. Challenges in Generative AI Industry:
Amid the burgeoning generative AI sector, reports have emerged of employees at major tech firms like Amazon, Google, Apple, and Microsoft facing intense pressure to deliver results at an accelerated pace to outpace competitors. Several AI engineers, speaking anonymously to CNBC’s Hayden Field, reveal experiencing burnout as the relentless pursuit of innovation begins to take a toll on their mental well-being.
Source (CNBC)
