Investment Highlights for May 2, 2023
- The stock market sprinted ahead on Friday, May 2, as the April jobs report hinted at a robust jobs market despite imposed tariff uncertainties.
Stock Market Ascension Today: S&P 500 Surges Due to Robust Employment Data Easing Economy's Fears
The S&P 500 shot up by 1.5%, marking its ninth consecutive victorious session. The Nasdaq and Dow also climbed by 1.5% and 1.4%, respectively.
- Job market still thriving, more jobs than anticipated added in April, according to the Bureau of Labor Statistics. This resilience suggests the labor market remains unaffected by tariff and trade concerns.
- DexCom (DXCM) shares soared by 16.2%, outperforming other S&P 500 stocks. The maker of glucose monitoring gadgets for diabetic patients outdid first-quarter revenue estimates. Although profits fell short of expectations and predicted incremental costs might squeeze the company's 2025 gross profit margins, DexCom shone a light on strong demand and unveiled a $750 million buyback program.
- A strong jobs report allayed fears about a prolonged economic slump driven by trade tensions, boosting the outlook for U.S. travel demand. Stocks in the travel sector such as United Airlines Holdings (UAL), Delta Air Lines (DAL), and Norwegian Cruise Line Holdings (NCLH) all experienced gains.
- Franklin Resources (BEN) shares surged by 7.2%, after the investment management company's earnings report revealed profits that grew year-over-year and revenue that outpaced forecasts, and boasted solid inflows for its exchange-traded fund (ETF) business.
- Shares of internet domain and web hosting provider GoDaddy (GDDY) dropped by 8.4%, despite exceeding earnings per share (EPS) and revenue projections for the first quarter of 2023. Analysts at RBC and Barclays reduced their price target on the stock, citing valuation concerns.
- Motorola Solutions (MSI) shares plummeted by 7.5%, despite exceeding first-quarter sales and profits projections and meeting revenue forecasts. The company offered restrained guidance for sales growth in the second quarter and suggested potential tariffs could burden costs throughout 2023.
- Take-Two Interactive Software (TTWO) shares slid by 6.7%, after the pushback of Grand Theft Auto VI's release to May 26, 2026. However, Take-Two remains confident in expecting record net bookings in fiscal 2026 and 2027.
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[1] Rockstar Games announcement: https://www.rockstargames.com/newswire/article/61141/Grand-Theft-Auto-VI-Release-Date[2] GamesIndustry.biz article: https://www.gamesindustry.biz/articles/2023-05-02-grand-theft-auto-vi-delayed-to-may-2026[3] Polygon article: https://www.polygon.com/2023/5/2/23648873/grand-theft-auto-vi-delayed-may-2026-rockstar-games
- Investors may want to consider the impact of the delayed release of 'Grand Theft Auto VI' on Take-Two Interactive Software's trading in the coming years, as the game's release date has been pushed back to May 26, 2026.
- The robust jobs market and positive financial results from companies like DexCom and Franklin Resources suggest potential opportunities for growth in both the finance and technology sectors of business.
