- U.S. equities indexes moved higher on May 5, 2023, as regional banks stocks recovered from a selloff and Apple (AAPL) reported strong results.
- The Nasdaq closed the day up 2%, while the Dow and the S&P 500 gained more than 1% in Friday’s session.
- Shares of Live Nation Entertainment (LYV) soared after the entertainment company posted record quarterly revenue.
U.S. equities closed out the first week of May on a high note as shares of regional banks rebounded after their major selloff on Thursday, and Apple (AAPL) reported strong profit and sales. In addition, April job growth was greater than anticipated, although the increases in the previous two months were revised downward, raising optimism that the labor market may be easing enough for the Fed to stop raising interest rates. The Nasdaq surged 2%, while the Dow and S&P 500 were more than 1% higher. Today’s advance helped the Nasdaq post a fractional gain for the week, while the Dow and S&P 500 were down.
Regional bank stocks soared, with shares of Zions Bancorporation (ZION), Comerica (CMA), and KeyCorp (KEY) rising by double-digit percentages. PacWest Bancorp (PACW) shares skyrocketed 81% after losing 50% in the previous session. The bank stocks got a lift from positive comments by a JPMorgan Chase analyst.
All but one stock in the Dow was in positive territory, and 22 had shares that were up more than 1%. The average was led by Apple, with shares rising 4.7% as its results were boosted by better-than-expected iPhone sales. Shares of Chevron (CVX) added 2.5%, and shares of other oil producers took off as well as crude futures soared 4%.
Live Nation Entertainment (LYV) shares jumped 15% after the show promoter reported record quarterly revenue. Expedia Group (EXPE) shares gained as the online travel site set an all-time high for lodging bookings and beat sales estimates. Shares of Carvana (CVNA) soared after the online used car retailer cut its losses and gave an optimistic profit outlook.
Intel the Lone Loser
Lyft (LYFT) shares tumbled 19% after the rideshare company’s current quarter guidance was short of predictions. Monolithic Power Systems (MPWR) also had a sales outlook that missed expectations, and its shares slumped. Shares of Epam Systems (EPAM) fell on the software engineering firm’s weaker-than-anticipated second quarter and full-year forecasts. Intel (INTC) was the only stock in the Dow to lose ground.
The yield on the 10-year Treasury note advanced. Gold and silver futures sank. The U.S. dollar was up versus the yen but declined against the euro and pound. Prices for major cryptocurrencies posted solid gains.