Jobs Surprise, Apple Earnings, Record Buyback Lift Dow; Warren Buffett’s Berkshire Hathaway Next

Due to Jobs Surprise, Apple Earnings, and Record Buyback, Dow Soars; Berkshire Hathaway Next

Stock market meanderings ended Friday as key indices closed higher. Weaker jobs data raised hopes of a rate drop shortly. Apple (AAPL) rose after its largest buyback and second-quarter reports.

Warren Buffett’s Berkshire Hathaway approached the 50-day moving average before its quarterly report.

Today, major stock indices crossed their 50-day moving averages. On Friday, the Dow Jones Industrial Average rose more than 450 points, or 1.2%, and closed the week up 1.1%. On the NYSE, advancers led 3-to-1 and on the Nasdaq, nearly 2-to-1.

In April, the economy added 175,000 jobs versus 243,000 projected by experts. Unemployment rose to 3.9% from 3.8%. Cooler jobs data suggests an earlier rate decrease. Plans for a July decrease boosted markets Friday.

Benchmark 10-year Treasury note yield fell 7 basis points to 4.50%.

The S&P 500 rose 1.3% while the Nasdaq led the market, rising 2% and crossing its 50-day line. Energy fell, while most industries rose.

NYSE volume was lower and Nasdaq volume higher, according to early figures.

After gapping above its 50-day line, the small-cap Russell 2000 closed below it, up nearly 0.9%.

Innovator IBD 50 ETF (FFTY) rose 1.5%.

Dow Jones Stocks

Apple rose 6% as profits beat expectations. Apple boosted its dividend and promised a $110 billion share buyback. Some say it’s the biggest company buyback ever. After its first-quarter results and obesity drug advancements, Amgen (AMGN) led Dow equities, rising nearly 12%.

Other Dow technology did nicely. Salesforce (CRM) climbed 0.6% while Microsoft (MSFT) approached its 50-day moving average with 2.2%. The Dow blended energy, financial, and health stocks.

Stock Market Today

Earnings impacted numerous equities today. MercadoLibre (MELI) rose 8% after topping first-quarter projections. IBD MarketSurge reports that shares have rallied from the 50-day moving average and formed a base at 1,825.

After first-quarter results beat estimates, cryptocurrency exchange Coinbase (COIN) dropped and faced resistance at the 50-day mark. Custodial fees, transaction, and subscription revenue increased. Digital payments company Block (SQ) climbed after first-quarter earnings but fell.

DraftKings (DKNG) lost early gains. Even though first-quarter sales were good, shares fell 2.9% on Friday after encountering resistance at the 50-day moving average.

After reporting earnings, Tidewater (TDW) rose nearly 14% in the IBD MarketSurge Growth 250.

Buffett’s Berkshire Hathaway (BRKB) ended roughly flat before its earnings announcement over the weekend. Still far from a purchase opportunity, a significant rebound from the 50-day moving average after earnings could be an entry.

Meritage Homes (MTH) sought to break out at 179.69 as reduced mortgage rates supported homebuilders. Pulte Group (PHM) and Toll Brothers (TOL) pared gains after gapping up. The iShares U.S. Home Construction ETF (ITB) crossed the 50-day line but closed below it.