Stock rose on Friday to close out an up week as investors appeared to take a glass half full view of the dismal monthly jobs report. Analysts noted that 18 million of the over 20 million jobs lost in April were deemed "temporary" and rising optimism that the economy will gradually restart, combined with the backstop of massive fiscal and monetary stimulus, has lent to the view 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%. In energy news, Baker Hughes reported that the U.S. rig count is down 34 rigs from last week to 374.
In COVID-19 news, the European Commission invited Schengen Member States and Schengen Associated States to extend the temporary restriction on non-essential travel to the EU for another 30 days, until June 15. In New York, Governor Andrew Cuomo reported 216 virus-related deaths versus 231 the day before. The governor added that the rate of hospitalizations in the state is going down.
TOP NEWS: Shares of Uber (UBER) finished 6.2% higher 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 7.9% 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.
Shares of TripAdvisor (TRIP) were 4.3% lower 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 3.4% after 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. Additionally, 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.
Meanwhile, shares of J.C. Penney (JCP) dropped 9.6% after Reuters reported that the company intends to file for bankruptcy as soon as next week. The retailer later told Bloomberg in a statement that no decision has been made on bankruptcy.
Additionally, Apple (AAPL) shares rose 2.4% as CNBC reported that the company intends to reopen certain stores in the U.S. next week, with temperature checks and a limited number of customers in the store at one time. The tech giant will start its store reopenings in Idaho, South Carolina, Alabama, and Alaska, an Apple representative told CNBC.
MAJOR MOVERS: Among the noteworthy gainers was Herbalife Nutrition (HLF), which rose 11.5% 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 29.9% and 39.9%.
Among the notable losers was Motorola Solutions (MSI), which slid 3.6% after reporting quarterly results and withdrawing full year guidance. Also lower after reporting quarterly results were Cloudflare (NET) and Appian (APPN), which fell 11% and 7.1%, respectively.
INDEXES: The Dow rose 455.43, or 1.91%, to 24,331.32, the Nasdaq gained 141.66, or 1.58%, to 9,121.32, and the S&P 500 advanced 48.61, or 1.69%, to 2,929.80.
Uber
+1.825 (+5.91%)
Roku
-11.16 (-8.10%)
TripAdvisor
-0.83 (-4.44%)
Disney
+3.63 (+3.44%)
JCP
+
Apple
+7.19 (+2.37%)
Herbalife
+4.225 (+11.44%)
Camping World
+3.22 (+29.90%)
American Axle
+1.7 (+39.91%)
Motorola Solutions
-4.69 (-3.46%)
Cloudflare
-3.28 (-11.13%)
Appian
-3.8 (-7.14%)