US open: Stocks jump back after mixed non-farm payrolls report

US stocks jumped on Friday following better-than-expected results from tech giant Apple, even as investors digested a mixed non-farm payrolls report for April.

“Few would have put ‘market rally’ as the result of a strong payrolls report this afternoon, but that is where we are," said IG chief market analyst Chris Beauchamp.

"13 successive payrolls reports have come in better than expected, and markets are taking this report as a clear sign of US economic strength which will drive earnings higher, even with the potential for interest rate increases.”

At 1636 BST, the Dow Jones Industrial Average was advancing 1.24% to 33,534.75, alongside a gain of 1.47% for the S&P 500 to 4,120.95.

The tech-heavy Nasdaq Composite meanwhile was up by 1.79% to 12,180.58.

In parallel, the yield on the benchmark 10-year US Treasury note was trading seven basis points higher to 3.459%.

According to the Department of Labor, hiring in the US jumped back by 253,000 last month (consensus: 175,000).

However, revisions to February and March meant that the net increase was 104,000.

Hourly average earnings also jumped past forecasts, clocking in at a sizeable 0.5% month-on-month (consensus: 0.3%), yet in quarterly annualised terms plumbed a fresh post-Covid low.

And analysts at Capital Economics said wage growth benefitted from a statistical effect in April.

Investor sentiment also got a boost after Apple posted second-quarter earnings per share of $1.52 and revenue of $94.84bn, ahead of forecasts for $1.43 and $92.96bn, as iPhone sales rebounded.

Russ Mould, investment director at AJ Bell, said: "Having been beset by supply chain issues in China, there will be relief at the rebound in sales of handsets.

"Group-wide sales did slump for a second consecutive month, as sales of Mac computers and iPads suffered, but at least the drop off was not as bad as feared."