U.S. stocks higher at close of trade; Dow Jones Industrial Average up 1.39%

Investing.com -- Major footwear companies including Nike (NYSE:NKE), Adidas (OTC:ADDYY), Under Armour (NYSE:UA), and Puma (OTC:PMMAF), represented by a trade association, made a plea to the Trump administration requesting tariff exemptions for their products. The group expressed concern that the tariffs would significantly increase the cost of shoes for American consumers and potentially lead to business closures.

The association highlighted the already substantial tariff burden on the footwear industry, with existing rates on children’s shoes reaching as high as 37.5 percent, even before the new reciprocal tariffs. They warned that the additional tariffs could push rates to between 150 percent and nearly 220 percent for many companies, which would be unsustainable, particularly for those providing affordable footwear to lower and middle-income families.

The footwear producers argued that the tariffs would not incentivize a return of shoe manufacturing to the United States due to the capital investment and time required to shift sourcing. They also pointed out that tariffs on machinery and materials needed for domestic production further complicate the situation.

According to the trade association, the tariffs have been in place for nearly a century and have not resulted in increased domestic production, but rather have led to higher prices for consumers at the cash register. They emphasized that the industry is one where tariffs do not significantly boost domestic production.

The industry representatives warned of the immediate risks posed by the tariffs, including job losses, increased consumer costs, and reduced consumer spending that could negatively impact the entire U.S. economy. They urged for a more targeted tariff approach that would not harm American families and requested the administration to exempt footwear from any reciprocal tariff regime.

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Investing.com -- The S&P 500 closed higher for a ninth-straight day Friday, notching its longest winning streak in more than 20 years as a strong jobs growth as well as on hopes of a lessening of tensions between China and the U.S. over trade.

At 4:00 p.m. ET (20:00 GMT), the S&P 500 index rose 1.4% to extend its daily wining streak to nine days, marking the longest win streak since November 2004. The Dow Jones Industrial Average climbed 564 points, or 1.4%, and the NASDAQ Composite gained 1.5%. 

Payrolls show resilience

Sentiment received a boost Friday after nonfarm payrolls grew more than expected last month, indicated a degree of resilience in the labor market despite the turmoil over the Trump administration’s chaotic trade policies. 

Payrolls increased by 177,000 jobs last month after rising by a downwardly revised 185,000 in March, the Labor Department’s Bureau of Labor Statistics said in its closely watched employment report.

Economists had forecast 138,000 jobs added last month after a previously reported 228,000 advance in March. 

The unemployment rate remained unchanged at 4.2% last month, while average hourly earnings rose by 0.2%, a small drop from March’s 0.3% gain. 

The labor market continues to show a degree of strength amid a reluctance by employers to let go of workers after struggling to find labor during and after the COVID-19 pandemic, but warning signs are accumulating, with gross domestic product data showing the U.S. economy unexpectedly contracted in the first quarter.

China signals potential U.S. trade talks

Earlier in the day, China’s commerce ministry said that Beijing was evaluating the possibility of trade talks with the U.S., adding that any dialogue must be based on sincerity and the removal of unilateral tariffs.

The comments came in response to recent U.S. statements suggesting a willingness to engage in trade negotiations. China’s commerce ministry noted that Washington has sent signals through various channels seeking to start talks.

Global markets have been roiled this month by fears that a broader trade war could push the global economy into a recession. 

Apple flags tariff hit, Amazon’s forecast disappoints

Shares of iPhone-maker Apple (NASDAQ:AAPL) fell more than 3% after the company said it sees about $900 million in costs for the upcoming quarter due to tariffs.

Apple posted fiscal second-quarter results that topped Wall Street estimates on better-than-expected iPhone sales, but tariff concerns dented optimism.

Meanwhile, Amazon (NASDAQ:AMZN) stock ended just below the flatline after the e-commerce giant reported softer guidance for the current quarter and underwhelming growth in its key cloud computing segment.  

Additionally, Airbnb (NASDAQ:ABNB) stock rose 1% despite the short-term rental company issuing a weak outlook for the second quarter, blaming economic uncertainties for softer travel demand in the U.S..

Exxon Mobil (NYSE:XOM) stock closed marginally higher after the oil major beat expectations for first-quarter profit as higher oil and gas production from Guyana and the Permian basin helped boost earnings.

Nearly two-thirds of the S&P 500 constituents have now announced their results, with 76% posting earnings that have surpassed estimates, according to data from FactSet.

(Peter Nurse, Ayushman Ojha contributed to this article.)