Stock investors appear to be taking a glass half full view of the dismal employment report as analysts note that 18 million of the over 20 million jobs lost last month were deemed "temporary." Given rising optimism that the economy will gradually restart, combined with the backstop of massive fiscal and monetary stimulus, what happened to the economy in April has been taken in stride amid rising expectations that the worst is behind and better days are to come.
ECONOMIC EVENTS: In U.S. data, nonfarm payrolls collapsed 20.5M in April and the unemployment rate jumped to 14.7%. Wholesale inventories fell 0.8% in March, while sales plunged 5.2%.
TOP NEWS: Shares of Uber (UBER) were 5% higher near noon after the ride-hailing giant reported Q1 results, noting that Monthly Active Platform Consumers rose to 103M, versus 93M last year. The company also noted on its quarterly call that a higher percentage of Rides customers are using its Uber Eats service, and demand for Eats is "enormous."
In other earnings news, Roku (ROKU) shares fell 7% after the company reported in-line Q1 earnings, with the company saying that it is "likely" that the impacts from the COVID-19 pandemic will remain "for some time." Analysts at Wedbush and Loop Capital raised their price targets on the shares following the report, while Susquehanna analyst Shyam Patil cut the firm's target to $145 from $170.
Meanwhile, shares of TripAdvisor (TRIP) were 4% lower near noon after the company reported lower than expected Q1 earnings and revenue, adding that it doesn't expect to buy back stock "for the foreseeable future." The company added in its Q1 shareholder letter that it expects "significantly negative EBITDA" in Q2.
In non-earnings news, Disney (DIS) shares rose 2% after the company announced last night that a phased reopening of Disney Springs will begin on May 20. The media and parks giant said that, during the initial opening phase, Springs will have limitations on capacity, parking, and operating hours. Additionally, Bloomberg reported that Shanghai Disneyland has sold out of tickets for its May 11 reopening following a four-month closure due to the COVID-19 pandemic.
MAJOR MOVERS: Among the noteworthy gainers was Herbalife Nutrition (HLF), which rose 11% after it reported quarterly results and said it is nearing a resolution with the SEC and DOJ over FCPA matters. Also higher after reporting quarterly results were Camping World (CWH) and American Axle (AXL), which gained a respective 30% and 38%.
Among the notable losers was Motorola Solutions (MSI), which slid 3% after reporting quarterly results and withdrawing full year guidance. Also lower after reporting quarterly results were Cloudflare (NET) and Appian (APPN), which fell 10% and 8%, respectively.
INDEXES: Near midday, the Dow was up 375.66, or 1.57%, to 24,251.55, the Nasdaq was up 132.23, or 1.47%, to 9,111.89, and the S&P 500 was up 40.99, or 1.42%, to 2,922.18.
Uber
+1.595 (+5.17%)
Roku
-10.14 (-7.36%)
TripAdvisor
-0.72 (-3.85%)
Disney
+2.62 (+2.48%)
Herbalife
+4.43 (+12.00%)
Camping World
+3.27 (+30.36%)
American Axle
+1.505 (+35.33%)
Motorola Solutions
-3.45 (-2.55%)
Cloudflare
-2.94 (-9.97%)
Appian
-4.83 (-9.07%)