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Stocks Rise As Apple Hits Buy Zone, Tame Wages Ease Fed Rate Hike Fears

The stock market turned higher early Friday, after the jobs report for April eased Fed rate hike fears, while Apple (AAPL) added to its positive momentum with news that Warren Buffett raised his stake.

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The Nasdaq composite was up 0.7% and the S&P 500 0.5%. The Dow Jones industrial average was 0.6% higher. The indexes remain below the 50-day moving average. They’re in a period of uncertain direction, while some distribution has added weight to the market’s recovery attempt.

Volume was tracking lower compared with the same time Thursday.

U.S. employers added 164,000 jobs in April, less than the 191,000 economists had forecast. But the unemployment rate fell to 3.9%, the lowest since 2000. Wage growth, the key number for stock market investors on edge about more Fed rate hikes, surprised on the downside, slipping to 2.6%.

Apple shares rallied after investor Warren Buffett said he has raised his stake in the company. Buffett’s Berkshire Hathaway (BRKB) bought 75 million shares of Apple in the first quarter. Buffett disclosed the share purchases on CNBC late Thursday.

Apple stock topped the 179.04 buy point of a double-bottom base Friday morning in heavy volume, rallying 3.5%. That puts the stock in buy range.

Earnings reports continue to roll in, and the reaction on Wall Street has been largely poor.

Arista Networks (ANET), a stock in the IBD 50 and Sector Leaders, plunged after earnings beat estimates but the company’s outlook was soft. Arista shares slid 10% in heavy volume.

Alibaba (BABA) fell after the Chinese internet giant’s earnings beat expectations and it forecast full-year revenue growth of 60%, well above views. Yet, shares were down 1%. The stock is still forming a double-bottom base with a 201.60 buy point, although the stock remains below the 50-day moving average.

RELATED:

Jobless Rate Slides To 3.9% But Wage Growth Dips; Dow Jones Futures Lower

Arista Revenue Outlook In Line, Stock Falls; Is Cisco Gaining Traction?

Apple Stock Nears Buy Point On Berkshire Hathaway’s Increased Stake

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