Mid-session market 05/05: Macro optimism drives strong market bounce

Apple reports Q1 earnings beat expectations, announces $90 billion stock buyback

• Total revenue slightly down 3% YoY to $94.8 billion, still $2.0 billion above estimates

  • Service revenue up +5% YoY to $73.9 billion

  • Product revenue down -5% YoY to $20.9 billion

• Operating Margin unchanged at 30%

• Net income $1.52/share, $0.09 above expectations

• Announces plan to spend $90 billion on stock buybacks

• Along with Microsoft, Apple and mega cap tech sector strongly pulled the market in the morning session, creating a mild short-covering rally before genuine organic buyers joined after about 1 hour from open, forcing volatility back to the FOMC day's low

Jobs report beats expectations for 13th straight month, showing labor market continues to grow under interest rate pressure

• Total jobs +253,000 in April, above 180,000 forecast

• Meanwhile, March figure revised from +236,000 jobs to +165,000 jobs

• Unemployment rate unexpectedly drops to 3.4%, against forecast rise to 3.6%

Meanwhile, White House says it may use temporary measures to raise debt ceiling if two parties fail to reach agreement by 06/01