Here Are 3 Hot Things to Know About Stocks Right Now

  • Apple Inc. (AAPL) rose nearly 5% after the iPhone maker's fiscal-second quarter earnings beat Wall Street estimates.
  • The Federal Reserve decided to keep interest rates unchanged.
  • The U.S. private sector added 204,000 jobs in April, according to ADP, down from 241,000 a month earlier. The official U.S. jobs report will be released on Friday.     

Wall Street Overview

Stocks were lower on Wednesday, May 2, after the Federal Reserve decided to keep interest rates unchanged. But shares of Apple Inc.  (AAPL)   rose after the tech giant reported stronger-than-expected fiscal second-quarter earnings on Tuesday.

The Dow Jones Industrial Average   dropped 174 points, or 0.72%, to 23,924. The S&P 500   also declined by 0.72% and the Nasdaq   dropped 0.42%.

The private sector added 204,000 jobs in April, according to the ADP National Employment Report, which is a precursor to the official U.S. jobs report that will be released on Friday, May 4.

Apple rose 4.4% on Wednesday after the iPhone giant beat revenue and earnings expectations for its second fiscal quarter, and assuaged fears of low iPhone demand.

The company earned $2.73 a share on revenue of $61.1 billion, ahead of forecasts of earnings of $2.67 a share on revenue of $60.82 billion. Apple also announced that it was raising its quarterly dividend by 16% and announced a new $100 billion share buyback plan.

Apple said it sold 52.2 million iPhones during the three-month period, in line with analysts' expectations, bringing in revenue of $38 billion.

Revenue for services -- including Apple Music -- was $9.1 billion, topping analysts' estimates of $8.3 billion. In addition, growth in greater China and Japan was up more than 20% during the company's second fiscal quarter.

Apple forecast revenue between $51.5 billion and $53.5 billion for its fiscal third quarter, along with gross margin between 38% and 38.5% and operating expenses between $7.7 and $7.8 billion.

Apple is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells the stock? Learn more now.
 
 
Snap Inc. ( SNAP) shares plunged 21% after the messaging company posted weaker-than-expected first-quarter earnings and said a re-design of its signature Snapchat app would slow ad sale revenue in the months ahead.

Snap posted an adjusted loss of 17 cents a share for the three months ended in March, which was largely in-line with analysts' estimates. Sales, while up 54% from the same period last year at $230.7 million, missed Wall Street forecasts of $244.5 million as daily active users on its platform rose by a less-than-expected 15% to 191 million.

YUM! Brands Inc. (YUM) reported adjusted earnings in the first quarter of 90 cents a share, blowing away forecasts. Revenue of $1.37 billion also topped forecasts. Yum! said same-store sales worldwide rose 1% in the quarter, which was below forecasts. The stock fell 7.4%. 

CVS Health Corp. (CVS) reported first-quarter profit that beat forecasts and said it expects 2018 adjusted earnings of $6.87 to $7.08 a share, which are above Wall Street estimates. CVS also said it expects its acquisition of Aetna Inc. (AET)  to close by the second half of 2018. CVS shares declined 3%.

Mastercard Inc. ( MA)  rose 3% after the credit card company posted first-quarter earnings and revenue that beat expectations.

Humana Inc. (HUM) posted first-quarter adjusted profit of $3.36 a share, higher than estimates of $3.19. The healthcare company also raised its earnings outlook for 2018.

Xerox Corp. (XRX) reached a settlement with Carl Icahn and his partner, Darwin Deason, to bring on six dissident-backed directors and oust the technology company's CEO, Jeff Jacobson.

The agreement comes after a New York Judge late last week issued an order temporarily blocking a plan Xerox announced in January to merge with Fujifilm in a transaction that would have installed Jacobson as CEO of the combined company.

Deason, Xerox's third-largest shareholder, and Icahn have been seeking to remove Jacobson, based on the argument that he hasn't done a good job and has sought to entrench himself with the acquisition structure that they insist hurts Xerox shareholders.

***

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Meet Jim Cramer and more than a dozen top market experts on Saturday, May 5, in New York for How to Diversify Your Portfolio: A Boot Camp for Investors.

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  • An exclusive market update from Jim.
  • A keynote interview between Jim and PayPal CEO Dan Schulman.
  • Break-out panels with top market experts like Tony Dwyer, chief market strategist at Canaccord Genuity; Mike Hanson, senior vice president of research at Fisher Investments; and Peter Hug, global trading director with Kitco Metals.
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When: Saturday, May 5, 8:55 a.m.-2:45 p.m.

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