The non-farm payrolls data for April showed that the US economy added 175,000 jobs, which is well below expectations of 241,000 jobs. The unemployment rate rose to 3.9%, while 3.8%was expected in the consensus. This shows that the labor market is starting to cool down.

The release comes after Fed chairman said that rates will need to remain high for longer to tame stubborn inflation, although he hinted that rate cuts were likely this year. A weaker economy strengthens the case for rate cuts. Futures shoot up after the release, with the Nasdaq going as high as 1.6%.

"This report is not too hot not too cold and it's just what the Fed wants to see. We're not seeing a pickup in wages we're still producing jobs, and the economy is doing well. However, the key to the report is wages which came in a little bit cooler than the market was looking for. It's a good report for the Fed and it's a good report for the markets," Peter Cardillo, chief marketing economist at Spartan Capital Securitites told Reuters.

I wonder if it's because I'm getting old, I don't understand things any more, or that something bad is going on, but I find that the stock markets react strangely to the signals sent to them. You only have to look at the behavior of certain stocks to be convinced. Double-digit stock market gains by companies that publish poorly. The equally impressive declines of companies with robust results. The plunges and explosions of certain stocks from one session to the next, for no valid fundamental reason. Nevertheless, the VIX index, which measures market volatility, is having trouble capturing this turmoil. Perhaps, as several specialists have recently argued, because it no longer fully fulfils its original function.

Now that six of the Magnificent Seven have published, we'll have to wait until May 22 to find out about the performance of the seventh and hottest of the moment, Nvidia. For artificial intelligence remains a powerful driving force behind the current market narrative.

Yesterday, Apple reassured the world. Investors didn’t think the results were amazing, but at least they were better than what they feared. After all, the Cupertino-based group posted a 4% drop in revenues at the start of the year. The CEO promised a return to slight growth in the second quarter. Even so, growth looks grim! In fact, iPhone sales were down 10% in Q1. But the market is happy to see that the services business is buoyant. In addition, Apple, as a fine psychologist, has launched a share buyback program. The biggest in its history: $110 billion. The honor is safe, and it works: the stock gained 6% in after-hours trading. Amgen jumped 13.5% after posting strong results and unveiling good progress in a study of an experimental weight-loss drug. This was enough to put a smile back on the face of the equity markets this morning, even though Wall Street had already finished well yesterday: financiers decided that the Fed's tepid communication was to be classed as good news, not bad.

In the Asia-Pacific region, mainland China and Japan are already on weekend as the day is a public holiday. South Korea and India are hovering around equilibrium. Australia is recovering a little, helped by its mining sector, where rumors of mergers and acquisitions have resurfaced since BHP expressed interest in Anglo American. European leading indicators are bullish.

Today's economic highlights:

US employment figures for April and the latest ISM services index are today’s main events.

The dollar is slightly down to EUR 0.9301 and GBP 0.7961. The ounce of gold is down to USD 2,297. Oil remains under pressure, with North Sea Brent at USD 84.06 a barrel and US light crude WTI at USD 79.12. The yield on 10-year US debt falls to 4.58%. Bitcoin is trading at USD 60,000.

In corporate news:

  • Apple reported a smaller-than-expected decline in first-quarter sales on Thursday, while its CEO said the company anticipated a return to growth in the current quarter, on the back of investments in artificial intelligence. The stock gained 5.5% before the opening.
  • Apollo Global Management and Sony Pictures Entertainment have made a $26 billion cash offer to buy Paramount Global, according to the Wall Street Journal. Seaport Research Partners downgrades its recommendation on Paramount to “neutral”.
  • Alphabet asked a judge not to impose radical changes proposed by Epic Games to its Play app store.
  • Booking on Thursday reported first-quarter earnings ahead of Wall Street estimates, as strong demand for international travel offset moderating demand in the U.S.
  • Live Nation Entertainment - Ticketmaster's parent company reported above-consensus first-quarter revenues on Thursday, buoyed by concert demand.
  • Expedia - The online travel agency lowered its annual sales growth forecast on Thursday, as bookings fell on its vacation rental platform, while performance in the business-to-consumer segment was disappointing. Piper Sandler also lowered its recommendation to “neutral”. The stock lost 9.5% before the opening.
  • Tesla< TSLA.O> - The U.S. National Highway Traffic Safety Administration (NHTSA) said on Friday that it had closed an investigation into some 158,716 of the group's vehicles.
  • Amgen on Thursday reported encouraging results for its experimental weight-loss drug MariTide. The group also reported slightly lower first-quarter earnings, as higher operating and interest expenses related to its recent acquisition of Horizon Therapeutics weighed, despite double-digit sales growth. The stock gained 14.5% before the opening.
  • Hershey reported first-quarter sales and earnings ahead of Wall Street expectations on Friday, benefiting from higher prices and sustained demand for its candies and chocolates.
  • Cheniere Energy - The US leader in liquefied natural gas reported lower first-quarter sales, penalized by lower natural gas prices.
  • Illumina on Thursday reiterated its revenue forecast for 2024, expecting continued weak demand from medical research laboratories and hospitals.
  • Digital Realty Trust beat Wall Street estimates on Thursday, thanks to strong demand for its data center services.
  • Cloudflare reported a widening first-quarter operating loss on Thursday, as costs and marketing expenses rose during the period. The stock lost 13.5% before the opening.
  • Fortinet forecasts billing volume below Wall Street estimates for the second quarter, penalized by weak corporate spending and strong competition. The stock lost 7.2% before the opening.
  • Hologic - The medical technology company reported second-quarter earnings above Wall Street estimates on Thursday.
  • Monster Beverage reported a 12% jump in first-quarter sales on Thursday, buoyed by strong demand for its energy drinks and lower freight costs.
  • Pioneer Natural Resources reported lower first-quarter earnings on Thursday, eroded by higher production costs and low natural gas prices.
  • EOG Resources - First-quarter earnings were above consensus on Thursday, as the oil and gas company benefited from higher production and oil prices.
  • Coterra Energy - First-quarter earnings came in above consensus on Thursday, as higher production helped the US shale producer offset the sharp drop in natural gas prices.
  • Coinbase Global reported a significant jump in first-quarter earnings, helped by higher cryptocurrency trading volumes. The stock nevertheless lost 2.4% before the opening.
  • Block raised its full-year adjusted Ebit guidance on Thursday and announced plans to add more bitcoins to its balance sheet, as the Jack Dorsey-led company bets heavily on cryptocurrencies. The stock gained 7.2% before the opening.
  • Consolidated Edison - On Thursday, the electric and gas utility posted first-quarter earnings ahead of Wall Street estimates, buoyed by higher rates and lower operating expenses.
  • Motorola Solutions raised its full-year revenue and earnings forecasts after reporting better-than-expected quarterly results on Thursday, citing strong demand for its secure telecom products.
  • XPO - The freight forwarding services provider posted first-quarter sales of $2.02 billion and earnings per share of $0.81, both ahead of consensus.
  • Opendoor Technologies - The online real estate company posted first-quarter sales of $1.18 billion, beating consensus at $1.09 billion.
  • Johnson Controls International - The building manufacturer is considering selling its ADT alarms business, as it divests some non-strategic activities, three people familiar with the matter told Reuters.
  • BigBear.ai Holdings - The artificial intelligence company fell 12.1% before the opening after reporting sales below estimates for the first quarter.

Analyst recommendations:

  • Align Technology, Inc.: Baptista Research downgrades to hold from underperform with a price target raised from USD 321.80 to USD 336.60.
  • Alphabet Inc.: First Shanghai Securities downgrades to hold from buy with a target price of USD 185.
  • Amgen Inc.: Barclays upgrades to equalweight from underweight with a price target raised from USD 230 to USD 300.
  • Apple Inc.: Itau BBA Securities upgrades to market perform from underperform with a price target raised from USD 162 to USD 188.
  • Arista Networks, Inc.: Jefferies upgrades to buy from hold with a price target raised from USD 240 to USD 320.
  • Biomarin Pharmaceutical Inc.: Baptista Research upgrades to buy from outperform with a price target raised from USD 108.40 to USD 108.90.
  • Cloudflare, Inc.: President Capital Management Corp downgrades to neutral from buy with a target price raised from USD 75 to USD 82.
  • CVS Health Corporation: HSBC downgrades to hold from buy with a price target reduced from USD 91 to USD 62.
  • Estee Lauder: Morgan Stanley downgrades to equalwt from overwt with a price target reduced from USD 164 to USD 140.
  • Expedia Group, Inc.: Piper Sandler & Co downgrades to neutral from overweight with a target price reduced from USD 175 to USD 145.
  • Hilton Worldwide Holdings Inc.: Baptista Research downgrades to hold from underperform with a target price raised from USD 199 to USD 222.40.
  • Paypal Holdings, Inc.: Phillip Securities downgrades to accumulate from buy with a price target reduced from USD 83 to USD 75.
  • Starbucks Corporation: DZ Bank AG Research downgrades to hold from buy with a price target reduced from USD 110 to USD 75.
  • Union Pacific Corporation: Stifel upgrades to buy from hold with a price target raised from USD 248 to USD 267.
  • Coinbase Global, Inc.: Wedbush maintains its outperform recommendation and raises the target price from USD 200 to USD 250.
  • Howmet Aerospace Inc.: Bernstein maintains its outperform recommendation and raises the target price from USD 75 to USD 92. Morgan Stanley maintains its overweight rating and raises the target price from USD 70 to USD 100.
  • Moderna, Inc.: Jefferies maintains its buy recommendation and raises the target price from USD 125 to USD 155.
  • United Rentals, Inc.: Baptista Research upgrades to outperform from hold with a price target raised from USD 712 to USD 860.
  • Xylem Inc.: Mizuho Securities maintains a neutral recommendation with a price target raised from USD 110 to USD 135.
  • Travis Perkins Plc: AlphaValue/Baader Europe upgrades to add from buy with a price target raised from GBX 976 to GBX 980.
  • Standard Chartered Plc: AlphaValue/Baader Europe upgrades to add from buy with a price target raised from GBX 945 to GBX 952.
  • Johnson Service Group Plc: Peel Hunt upgrades to buy from add with a price target raised from GBX 154 to GBX 168.
  • GFL Environmental Inc.: Wolfe Research maintains its outperform recommendation and raises the target price from USD 36 to USD 47.
  • Open Text Corporation: BMO Capital Markets downgrades to market perform from outperform with a price target reduced from USD 50 to USD 38.