On Friday, the Dow Jones Industrial Average and other major U.S. stock indexes experienced gains, driven by the release of the latest jobs report which exceeded expectations. The report revealed that the economy added 303,000 new jobs in March, surpassing the estimated figure of 205,000. Additionally, the unemployment rate declined to 3.8%.
The positive jobs report injected renewed excitement into the market, particularly after a week characterized by a selloff. The robust jobs growth instilled hopes of declining inflation, thereby fueling speculation that the Federal Reserve might consider lowering interest rates later in the year.
As markets approached closure, the Dow surged by 318 points, equivalent to approximately 0.8%, reaching 38,915. Similarly, the S&P 500 experienced a notable increase of 1.1%, reaching 5,202, while the Nasdaq rose by 1.2% to 16,242.
In conjunction with the stock market gains, the yield on the 10-year Treasury note also saw an increase of about nine basis points, climbing to approximately 4.39%. This uptick in Treasury yields holds significance as it suggests that investors are exhibiting a preference for investments with higher risk and potential reward.
GE Aerospace was the top performer
Earlier this week, GE Aerospace and GE Vernova commenced trading as independent entities on the New York Stock Exchange subsequent to their spinoff from General Electric (GE). On Friday, GE Aerospace, one of the newly separated entities, made a significant announcement regarding its quarterly dividend payment. The company revealed that it would be increasing its quarterly dividend from 8 cents to 28 cents per share, representing a remarkable 250% increase in the dividend payout. This news propelled GE Aerospace stock to the top performer of the day, experiencing a notable 5.5% increase in its share price.
By late Friday, GE Aerospace stock was trading around $155 per share, marking a substantial uptick and reaching its new 52-week high. The announcement of the dividend increase, coupled with the positive market sentiment surrounding the spinoff and the company’s future prospects as an independent entity, likely contributed to the surge in investor interest and the significant rise in the stock price.
The decision to increase the dividend payment signals confidence in GE Aerospace’s financial health and underscores the company’s commitment to delivering value to its shareholders. It also reflects optimism regarding the company’s growth trajectory and its ability to generate strong cash flows moving forward.
Amazon and Meta up on latest price targets
On Friday, Meta Platforms, the parent company of Facebook and Instagram, emerged as one of the top performers in the market as its shares surged to reach a new 52-week high. The social media giant’s stock experienced a notable 3% increase following a positive report from analysts at Jefferies and RBC, who raised their price targets for the company. These analysts highlighted Meta’s strengthening position in the digital advertising market, which fueled investor optimism regarding the company’s future growth prospects.
By late afternoon, Meta’s stock was trading around $526 per share, indicating a significant upward trajectory and hitting its new 52-week high. The positive sentiment surrounding Meta was further buoyed by anticipation for the company’s upcoming earnings report scheduled for April 24. Investors are eagerly awaiting insights into Meta’s financial performance and strategic initiatives, which could potentially drive further momentum in the stock.
In a separate development, Jefferies analysts also raised Amazon’s price target from $190 to $225 per share. This news contributed to a 2.5% increase in Amazon’s stock price, which was trading at $184 per share by the end of the day. The upward revision in price target underscores analysts’ confidence in Amazon’s growth prospects and its ability to capitalize on opportunities in the e-commerce and cloud computing sectors.
Tesla’s bumpy ride continues
On Friday, Tesla, the electric vehicle manufacturer led by Elon Musk, faced further challenges as its shares plummeted by 4% to $164. This decline followed a report suggesting that the company was abandoning its long-promised plans to produce a low-cost electric vehicle (EV).
Tesla’s stock has been under pressure throughout the year, experiencing a significant downturn. Year-to-date, Tesla’s shares have fallen by more than 33%, reflecting ongoing challenges and investor concerns regarding the company’s performance and strategic direction.
Earlier in the week, Tesla reported a drop in quarterly sales, marking what one analyst described as a “nightmare” first quarter for the company. The disappointing sales figures added to the downward pressure on Tesla’s stock, exacerbating existing concerns about the company’s ability to meet its production targets and sustain growth momentum.
The decision to abandon plans for a low-cost EV adds to the narrative of uncertainty surrounding Tesla’s future trajectory. Investors have been closely monitoring the company’s progress, particularly amid intensifying competition in the electric vehicle market and increasing scrutiny of Tesla’s operations and governance practices.
The challenges facing Tesla underscore the volatility inherent in the automotive industry, especially for companies operating in the rapidly evolving electric vehicle segment. As Tesla navigates these hurdles, investors will continue to scrutinize its performance and strategic decisions, seeking clarity on the company’s ability to overcome obstacles and deliver sustainable growth in the long term.
Cinemark is up as ‘movies are back’
An analyst from Wells Fargo upgraded their outlook on Cinemark stock directly from ‘sell’ to ‘buy,’ demonstrating a significant level of optimism.
In the accompanying research note, it was boldly stated, “Movies are back!”.
As a result of this upgrade, Cinemark stock surged by 3.8% on Friday, reaching its highest point in the past 52 weeks.
Teladoc CEO departure sinks stocks
Teladoc Health CEO Jason Gorevic made a surprise announcement of his departure on Friday. The telehealth company has faced significant challenges since 2021, with its stock plummeting by 92%, presenting difficulties in maintaining a favorable position in the post-pandemic landscape.
On Friday, Teladoc stock hit a new 52-week low, reflecting the ongoing struggles faced by the company. However, there was a slight recovery in the late afternoon, with the stock experiencing a 1.5% increase.
A 10% drop in Trump Media stocks
Trump Media & Technology Group stock experienced a significant decline of over 10% on Friday, marking its lowest point since its debut as a publicly traded company just last week.
Shares in Trump Media, the entity responsible for former President Donald Trump’s social media platform Truth Social, were trading at $41.08 mid-afternoon on Friday. This decrease resulted in the company’s market capitalization dropping to $5.62 billion, representing a staggering decline of over $2 billion from its initial trading day.
The stock price reached its lowest level since Trump Media entered the public market following its merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC). This sudden downturn in stock price reflects investor sentiment and underscores the challenges faced by Trump Media & Technology Group as it navigates the complexities of the digital media landscape and strives to establish its presence in the market.