Stocks climbed on Friday afternoon as investors welcomed a key monthly jobs report that showed hiring remains robust in the US economy. The Middle East crisis and a return to work at US ports also stayed in high focus.
The S&P 500 (^GSPC) put on 0.5%, while the Dow Jones Industrial Average (^DJI) added just under 0.4%, paring bigger gains soon after the open. The tech-heavy Nasdaq Composite (^IXIC) moved 0.8% higher.
The September jobs report massively overshot expectations, as the US economy added 254,000 jobs last month and the unemployment rate dipped down to 4.1%. All together, the report showed the labor market remains robust, even amid signs it has cooled. Yahoo Finance’s Josh Schafer has more details on the report here.
The jobs report swung forecasts toward a smaller interest-rate cut from the Federal Reserve next month. Over 90% of bets are on a 25 basis point cut, as opposed to a larger 50 basis point cut, according to the CME FedWatch Tool.
Stocks are looking to recoup weekly losses, as the markets have shown some resilience in the face of a rough week of worrying headlines. The major gauges were off 1% or less as of Thursday’s close, with the S&P 500 and Dow still within striking distance of record highs.
In recent days, a huge ports strike, devastation from Hurricane Helene, and the prospect of a wider Mideast conflict brought the potential to lift prices and fan inflation.
In a welcome move, the US dockworkers strike ended after a tentative wage deal was agreed late Thursday, though some issues remain to be settled by later this year.
On the downside, a barrage of strikes by Israel on Beirut kept alive the Mideast worries that have driven up oil prices. Western leaders warned about “uncontrollable escalation” as investors waited to see whether Israel will attack Iran’s oil facilities — a move President Biden said is under discussion.
Oil is on track for its biggest weekly gain in a over a year as tensions mount. Brent crude (BZ=F) and West Texas Intermediate (CL=F) futures rose roughly 2% Friday, coming off a 5% gain the previous day.
Live11 updates
Fri, October 4, 2024 at 2:45 PM EDT
Tesla stock had a rough week — here’s what’s next for the EV maker
Tesla (TSLA) stock was on pace to end the week down 4% on Friday as the EV maker missed Wall Street estimates on its third-quarter deliveries, issued a recall and discontinued a lower-priced model.
As Yahoo Finance’s Laura Bratton reports, shares of the EV maker have been on a rollercoaster ride this year, plummeting after its dismal first quarter earnings report in April, then recovering in July when Tesla fared better than expected in the following earnings period thanks to price cuts.
Now all eyes are on Tesla’s upcoming robotaxi event, which will either cement Elon Musk’s reputation as an AI leader — or cast doubt on his lofty goals.
Oil hovers near session highs, on pace for biggest weekly gain in over a year
Oil was on pace for its biggest weekly increase in more than a year on Friday over concerns that Israel could target Iran’s crude facilities in response to Tehran’s recent missile assault.
West Texas Intermediate (CL=F) rose more than 2% midday to hover above $75 per barrel. Brent (BZ=F), the international benchmark price, advanced nearly 2% on to trade above $79 per barrel.
US futures are up more than 10% for the week, while Brent is up more than 9% during the same period.
Fri, October 4, 2024 at 1:15 PM EDT
Hot jobs report doesn’t change Fed’s rate ‘calculus’: Goolsbee
Chicago Fed president Austan Goolsbee doesn’t think a hot jobs report released Friday will alter the downward path of interest rates over the next 12 to 18 months.
“I don’t think that calculus changes,” he said in an interview with Yahoo Finance.
By the end of 2025, “I think we will be a fair bit lower if conditions continue like this,” he added.
The Fed last month cut rates for the first time in more than four years, starting with a jumbo-sized 50 basis point cut designed to get ahead of any weakness in the labor market.
Fears that the Federal Reserve may have acted too slowly to ease interest rates were quieted on Friday after the September jobs report signaled hiring remains robust in the US economy.
Data from the Bureau of Labor Statistics showed the labor market added 254,000 payrolls in September, more additions than the 150,000 expected by economists. And the unemployment rate fell to 4.1%, down from August’s 4.2%
The robust jobs data appeared to confirm the observations of Fed Chair Jerome Powell that the economy is in “solid condition,” and bolstered his contention that the Fed isn’t in a rush to lower interest rates.
The S&P 500 (^GSPC) put on about 0.4%, while the Dow Jones Industrial Average (^DJI) added 0.3%, paring bigger gains soon after the open. The tech-heavy Nasdaq Composite (^IXIC) moved 0.6% higher.
Fri, October 4, 2024 at 12:11 PM EDT
Boeing stock sees brief reprieve after successful rocket launch with Lockheed
Lockheed shares were flat Friday. Boeing stock pared initial gains midday.
Boeing stock has plummeted more than 40% as the company has dealt with the fallout of its door plug blowout fiasco in January. Safety issues and production delays have plagued the aircraft manufacturer, among a myriad of problems. Some 33,000 Boeing workers also recently went on strike, seeking competitive pay and benefits.
Fri, October 4, 2024 at 11:30 AM EDT
Tesla’s highly anticipated Robotaxi event arrives next week
For months, CEO Elon Musk has touted his expanded vision for Tesla, which he sees as a platform for advanced AI technology, rather than just a seller of vehicles. Musk has described the robo-taxi endeavor as a huge development in autonomous rideasharing. Tesla would provide a fleet of driverless vehicles for users to summon for the transportation needs.
The debut for the concept was originally scheduled for August but was delayed until October 10.
Tesla bull Dan Ives sees the event as a defining moment for the company.
“We believe Robotaxi Day will be seminal and historical day for Musk and Tesla and marks a new chapter of growth around autonomous, FSD, and AI future at Tesla. We continue to believe Tesla is the most undervalued AI name in the market and we expect Musk & Co. to unveil some ‘game changing’ autonomous technology at this event next week.”
Fri, October 4, 2024 at 11:00 AM EDT
Spirit Airlines stock drops 25% amid reports of potential bankruptcy, other airlines rise
Spirit Airlines (SAVE) shares plummeted on Friday following reports from The Wall Street Journal and Bloomberg that suggest the budget carrier may be nearing bankruptcy.
The Journal said late Thursday that Spirit has been in talks with bondholders over the terms of a possible bankruptcy filing. Bloomberg reported Friday that Spirit’s efforts to secure a rescue deal with bondholders to restructure its debt — and hence, avoid bankruptcy — have stalled.
Spirit’s shares have tumbled nearly 90% since the start of the year, falling sharply after a federal judge blocked its merger with JetBlue Airways (JBLU) over antitrust concerns. The carrier reported a loss of $193 million in its most recent quarterly earnings report.
As Spirit’s stock fell to an all-time low of $1.40 each, other airlines saw their share prices rise. JetBlue stock surged more than 15% Friday. Frontier Airlines ((ULCC) shares jumped 21%. Delta Air Lines (DAL), American Airlines (AAL), and United Airlines (UAL) shares rose by percentages in the low single digits.
Fri, October 4, 2024 at 10:15 AM EDT
Stocks trending in morning trading
Here are some of the stocks leading Yahoo Finance’s trending tickers page during morning trading on Friday:
Rivian (RIVN): Shares of the electric vehicle maker fell 7% Friday morning after the company cut its production forecast for the year and fell short of delivery expectations because of slowing growth in demand and a parts shortage.
Spirit Airlines (SAVE): The budget carrier fell nearly 25% Friday after the Wall Street Journal reported that the company has been in discussions with bondholders over a potential bankruptcy filing following its failed merger with JetBlue (JBLU).
Meta (META): The social media company rose 0.5% following an announcement that it has developed a new artificial intelligence model, in competition with OpenAI, that can generate video and audio based on prompts from users. Dubbed Movie Gen, the model will also allow users to edit existing videos through text inputs. according to a company blog post.
CVS (CVS): Shares of the pharmacy chain rose nearly 3% following an upgrade from TD Cowen. Its analysts moved the stock from a Hold to a Buy, citing changes to its Medicare Advantage plan for 2025 that CVS announced earlier this week.
Fri, October 4, 2024 at 9:35 AM EDT
Stocks rise after massive jobs report beat
Investors embraced a hugely encouraging jobs reportt Friday that showed hiring remains robust in the US economy.
The S&P 500 (^GSPC) put on 0.7%, while the Dow Jones Industrial Average (^DJI) added roughly 0.6%. And the tech-heavy Nasdaq Composite (^IXIC) moved 1.1% higher.
The labor market added 254,000 payrolls in September, more additions than the 150,000 expected by economists, according to data from the Bureau of Labor Statistics. The unemployment rate fell to 4.1%, from 4.2% in August.
Fri, October 4, 2024 at 9:07 AM EDT
Markets move to price in less Fed easing after strong jobs report
Following the report, markets were pricing in a roughly 10% chance the Fed cuts interest rates by half a percentage point in November, down from a 53% chance seen a week ago, per the CME FedWatch Tool.
Robert Sockin, Citi senior global economist, told Yahoo Finance that the better-than-expected jobs report makes it less likely that the Fed moves with the “urgency” it did at its September meeting, when the central bank cut interest rates by half a percentage point.
“This pushes the Fed out a lot,” he said, adding that it’s uncertain the Fed will make another 50 basis point cut again this year.
“Looking at the labour market strength evident in September’s employment report, the real debate at the Fed should be about whether to loosen monetary policy at all,” Capital Economics chief North America economist Paul Ashworth wrote in a note to clients on Friday. “Any hopes of a [50 basis point] cut are long gone.”
September jobs report crushes expectations as US economy adds 254,000 jobs, unemployment rate falls to 4.1%
The US labor market added far more jobs than projected in September while the unemployment rate unexpectedly ticked lower, reflecting a far stronger picture of the jobs market than Wall Street had expected.
Data from the Bureau of Labor Statistics released Friday showed the labor market added 254,000 payrolls in September, more additions than the 150,000 expected by economists.
Meanwhile, the unemployment rate fell to 4.1%, from 4.2% in August. September job additions came in higher than the revised 159,000 added in August.