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Key Takeaways
- The S&P 500 jumped 1.5% on Friday, May 2, as the latest jobs report revealed a strong pace of hiring in April despite tariff-related uncertainties.
- DexCom shares soared as the medical device maker exceeded quarterly sales expectations thanks to strong demand for its glucose meters.
- Take-Two Interactive’s shares plummeted after it announced that Grand Theft Auto VI would be released in the middle next year.
The major U.S. equity indexes rose on the last day of the trading session.
The Bureau of Labor Statistics released a report that showed the economy had added more jobs than anticipated in April. The high rate of hiring indicates that the labor market is resilient despite uncertainty related to tariffs and policies.
The S&P 500 jumped 1.5%, marking its ninth straight winning session. The Nasdaq added 1.5% while the Dow finished 1.4% higher.
DexCom (DXCM) shares surged 16.2%, gaining the most of any S&P 500 stock, after the maker of glucose monitoring devices for patients with diabetes topped first-quarter revenue estimates. DexCom, despite its slightly lower-than-expected profits and a warning that increased costs could negatively impact its 2025 margins of gross profit, highlighted the strong demand for its products and announced a stock buyback plan worth $750 million.
The strong jobs report helped to alleviate concerns over the potential for an economic downturn caused by trade tensions. This helped boost the outlook for U.S. demand for travel. Shares of several companies in travel rose. United Airlines Holdings (UAL) shares lifted 7.1%, while Delta Air Lines (DAL) shares advanced 6.6%. Norwegian Cruise Line Holdings shares (NCLH), the cruise operator, rose 6.8%.
Franklin Resources’ (BEN) stock increased 7.2% after the company reported its quarterly results. Although profits were below expectations, they increased on a year-overyear basis and revenue exceeded forecasts. Franklin also boasted of strong inflows to its exchange-traded (ETF) division, which reached a record in terms of assets under administration (AUM).
Analysts at RBC and Barclays have reduced their price target for GoDaddy (GDDY), citing valuation concerns. GoDaddy shares slipped 8.4% on Friday, suffering the heaviest decline in the S&P 500.
Motorola Solutions’ (MSI) shares fell 7.5%. Although the provider for land mobile radios and video security systems exceeded sales and profit expectations in the first quarter, it provided relatively muted sales growth guidance for the second. The company indicated that tariffs could create cost pressures throughout 2025.
Take-Two Interactive Software shares (TTWO), which are owned by Rockstar Games, fell 6.7% on Monday after the company announced that its highly anticipated Grand Theft Auto VI game would be delayed until 2026. Take-Two said that it still expects to achieve record net bookings during fiscal 2026-2027, despite the postponed release.
