Apple's $110B Buyback and Key Market Updates for May 3, 2025 | Stocks to Watch Now

Market Highlights for May 3, 2024

U.S. stock futures are climbing as investors prepare for the anticipated April jobs report and digest a wave of earnings releases. Apple Inc. (AAPL) surged over 6% in premarket trading following a stronger-than-expected earnings report and an announcement of a historic $110 billion stock repurchase program—the largest ever in U.S. history. Meanwhile, Amgen (AMGN) soared after outperforming earnings estimates and sharing promising progress on its weight-loss drug MariTide, impacting competitors Novo Nordisk (NVO) and Eli Lilly (LLY). Cloudflare (NET) shares dropped sharply after issuing a cautious sales forecast, while Sony Group (SONY) and Apollo Global Management reportedly submitted a $26 billion all-cash offer to acquire Paramount Global (PARA). Here are the five major developments investors need to watch today.

1. Apple Surges with Record $110 Billion Buyback and Earnings Beat

Apple’s shares jumped more than 6% in early trading following the company’s announcement of better-than-expected quarterly earnings and a massive $110 billion stock buyback plan, setting a new U.S. record. Despite a 4.3% decline in sales during Q1, Apple projects low single-digit percentage sales growth for the current quarter. CEO Tim Cook expressed optimism about the Chinese market’s potential despite recent declines and highlighted strong confidence in generative artificial intelligence, though without revealing specifics about AI integration in future iPhones. Investors also await insights from Warren Buffett at Berkshire Hathaway’s upcoming annual meeting, where Apple’s future direction may be discussed.

2. U.S. April Jobs Report Signals Ongoing Economic Strength

The U.S. Labor Department is set to release April employment data at 8:30 a.m. ET, with economists forecasting the addition of 240,000 jobs—slightly down from March’s 303,000 but well above pre-pandemic monthly averages. This continued job market tightness complicates the Federal Reserve’s plans to cut interest rates amidst persistent inflation concerns. Wage growth figures will be closely monitored as they play a key role in inflation dynamics. The Fed recently kept rates steady at a 23-year high, signaling caution before any rate easing.

3. Amgen Rises on Earnings Beat and Weight-Loss Drug Breakthrough

Biotech giant Amgen’s shares jumped nearly 14% premarket after surpassing earnings expectations and announcing promising trial results for its injectable weight-loss drug, MariTide. The company is halting development of an oral weight-loss pill to focus resources on MariTide. This news pressured shares of rivals Novo Nordisk and Eli Lilly, both leaders in the weight-loss medication market, whose stocks fell over 2% in premarket trading.

4. Cloudflare Shares Fall on Soft Q2 Sales Outlook

Cloudflare’s stock tumbled over 13% premarket following the company’s subdued sales guidance for the current quarter, despite exceeding earnings estimates. The cloud infrastructure provider faces challenges as enterprise customers tighten budgets amid economic uncertainty and fierce competition from cybersecurity firms Palo Alto Networks and CrowdStrike offering bundled security and application management solutions.

5. Sony and Apollo Submit $26 Billion All-Cash Bid for Paramount

Japan’s Sony Group, together with private equity firm Apollo Global Management, reportedly made a $26 billion all-cash offer for Paramount Global, intensifying the ongoing bidding war. This development follows Paramount's recent CEO departure and ongoing exclusive merger talks with Skydance Media. Some shareholders have voiced concerns over Skydance’s deal terms benefiting controlling shareholder Shari Redstone. Paramount shares remained stable during premarket trading.

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