Stocks jump with help of Buffett, Apple
NEW YORK — U.S. stocks made up for a shaky week with a strong finish Friday as Apple led a rally in technology companies. The tech giant hit an alltime high after Warren Buffett said he'd made another big investment.
Stocks got off to a mixed start after trade talks between the U.S. and China ended with few signs of progress. The April jobs report showed that hiring continued at a solid clip and wages continued to grow at a slow pace. Apple surged after Buffett said Berkshire Hathaway bought 75 million shares during the first quarter.
Alphabet, Cisco Systems and other tech companies rose. Retailers, banks and household goods makers also rallied. Investors cheered strong first-quarter results from companies including Activision Blizzard.
“We went into this earnings season with very high expectations,” said Quincy Krosby, chief markets strategist for Prudential Financial. “When you go in with such high expectations, you expect near perfection.”
Overall, stocks have taken small losses in choppy trading over the last two weeks. But for Apple, t½his was the best week in 6½ years.
Apple rose 3.9 percent to $183.83 after Warren Buffett said his company boosted its investment in Apple to more than 240 million shares altogether. Buffett told CNBC about the purchase ahead of Berkshire Hathaway's annual meeting this weekend. Berkshire stock rose 2.1 percent to $195.64.
Apple climbed 13.3 percent for the week after it reported solid quarterly results, and investors were pleased with its forecast of solid iPhone sales, which came as a relief.
It also raised its dividend and announced a big stock repurchase.
Companies have done well in the first quarter, but stocks haven't necessarily followed suit as investors worried about the U.S.-China trade spat, rising interest rates, and other issues.
But on Friday, investors responded.
U.S. employers stepped up hiring modestly in April, and the hiring estimate from March was revised higher. That's evidence the economy remains resilient even though some businesses are concerned about a possible trade war. While many employers say it's difficult to find qualified workers, they have yet to significantly boost pay in most industries.
“That may not be good for Main Street, but it's what Wall Street wanted to see,” Krosby said.
Senior Chinese and American officials concluded two days of negotiations Friday with no deal and no date set for further talks, as the U.S. stepped up its demands for Chinese concessions to avert a potential trade war.