US Open: bullish sentiment is back on Wall Street!

• Wall Street opens higher as the US added more jobs in April 

• US labor market remains strong, but not so long

• Regional banks rebounded after recent panic

• Coinbase Q1 better than expected

Today Wall Street opens higher and positive sentiment is back on the market. Bullish sentiment is fueled by better financial results of many companies and better than expected labor market data. Additionally, the market sentiment was buoyed by the robust earnings from Apple (AAPL.US), which revealed unexpected growth in its iPhone business in the Q1 2023. The US500 index is rising as much as 1.55% to 4,140 points.

NFP data released today suggest that the labor market is still strong. Unemployment rate came at record lows of 3.4% and Non-Farm Employment Change showed that the US economy grew by an additional 253k jobs in the last month. However, according to experts, the US employers are likely to slow down on hiring over the coming months, amid concerns that the economy may tip into recession. The report indicates a grimmer picture, with hiring slowing notably since the beginning of the year. The report also shows that layoffs are starting to surge, with Challenger, Gray & Christmas reporting that April layoffs surged 176% from last year to nearly 67k. 

Yesterday panic among regional banks was short-lived Today after a period of turbulence, regional banks experienced a rebound, with PacWest surging up to 26% in premarket trading, and Western Alliance and First Horizon also seeing gains. Although some short sellers have targeted weaker lenders' stocks. According to Bloomberg analysts, the fundamental weaknesses persist. Some banks still pay interest rates above the top range set by the Fed to borrow reserves.

The US500 index is currently trading at 4,140 points and has rebounded after a selloff that occurred after the FED meeting. The price is now consolidating within a range between 4,100 and 4,200 points, and it's closer to the upper resistance level of a bear market descending channel marked with dark blue on the chart. This suggests that there may be selling pressure at this level (currently above 4,200). The next resistance level is at 4,200 points. Traders may want to monitor the price action closely to see if the index can break through this resistance level and potentially continue its upward trend, or if it will encounter resistance and turn lower towards the support level at 4,100 points.

Company news:

• Apple (AAPL.US) rose as much as 2.5% in premarket trading after the company reported forecast beating second-quarter revenue on robust iPhone sales despite a weak macro environment. Apple also announced plans for $90 billion in stock repurchases and raised its quarterly dividend.
• Coinbase Global (COIN.US) gains 9.1% after the crypto stock exchange reported stronger-than expected first-quarter results, with analysts touting positive adjusted Ebitda in particular. Still, analysts are mixed on the outlook for the current period, and most continue to have concerns around the regulatory environment going forward.
• Lyft (LYFT.US) slumped as much as 17% on Friday after the company forecast revenue for the second quarter that trailed the average analyst estimate. New CEO David Risher faces several challenges as he attempts to turn around the struggling ride-hailing company..
• Carvana (CVNA.US) shares surge as much as 37% and are set for their biggest one-day gain in three months, after the online second-hand-car retailer’s 1Q earnings beat estimates and it predicted a return to profitability in the second quarter. Analysts raised their price targets, positive on the company’s cost cutting efforts even as challenges remain.