Friday is a day for stocks in the U.S. to rise as Apple gets close to their all-time high and paves the path for other technology companies. Stocks for banks, retailers, and other stocks are also increasing, creating a positive outlook for the future. A less-than-stellar job report for the previous month of April didn’t impact the market too much. China and the U.S. trade talks failed to result in a deal, but Wall Street wasn’t expecting anything different.
Apple’s spike in price occurred after Warren Buffett’s company Berkshire Hathaway purchased additional Apple stock. Shares of Apple rose 3.5 percent to reach $183.15. Buffett purchased 75 million shares, increasing Apple’s total to more than 240 million shares. Berkshire stock rose to $194.59 after the purchase, a 1.6 percent increase.
Apple’s 12.5 percent increase is also because the company reported positive results at the beginning of the year, pleasing investors. The company announced they’re raising dividends and planning to re-purchase a significant amount of stock to put back into the company.
Alphabet rose to $1,045.26 for a 1.9 percent increase, while Cisco Systems stock increased two percent at a value of $45.34, showing a strong increase in the tech sector on the market. Activision Blizzard increased 3.5 percent to $69.18, which helped since stock dropped the day before due to the release of Activision’s results early. Pandora Media increased a whopping 25 percent to $7.24 per share.
Employers in the United States increased hiring in April, indicating the economy is still strong despite threats of a potential trade war. Employers complain that it is difficult to find workers qualified for the positions they need, but most sectors have yet to increase pay to attract qualified workers. Earnings are up 2.6 percent from one year ago, equivalent to what expert analysts estimated.
The Trump administration reached out to China to request them to reduce trade deficit with the United States before the end of 2020 in an attempt to prevent a trade war between the two dominant world economies. The administration also requested that China stop providing subsidies to some industries effective immediately and end some of their policies regarding technology transfers. These requests create controversy. Many of those watching the market believe that eventually the two countries will reach a deal so it’s not impacting the market negatively as many predicted it might.