Wall Street's major indexes ended higher on Friday, rebounding from the previous day's sell-off as Amazon's strong earnings countered a significant drop in U.S. job growth in October.
Market Snapshot
The Dow Jones Industrial Average rose 288.73 points, or 0.69%, to 42,052.19, the S&P 500 gained 23.35 points, or 0.41%, to 5,728.80 and the Nasdaq Composite gained 144.77 points, or 0.80%, to 18,239.92.
Market Movers
Apple - Apple beat fiscal fourth-quarter earnings and revenue estimates, according analysts surveyed by FactSet, but issued disappointing guidance for the holiday quarter. iPhone revenue in the fourth quarter of $46.22 billion topped Wall Street estimates of $45.16 billion. Revenue in China of $15 billion was down slightly from a year earlier and below analysts’ expectations. The stock fell 1.3% in Friday trading.
Amazon.com - Amazon.com rose 6.2% after the tech and online retail giant reported third-quarter earnings that beat Wall Street estimates. Amazon posted earnings of $1.43 a share, topping forecasts of $1.14, while net sales of $158.9 billion beat expectations for $157.3 billion. Sales at Amazon Web Services cloud business rose 19% to $27.5 billion in the period. Capital spending rose significantly in the quarter to $22.6 billion from $12.5 billion a year earlier and is expected to keep rising as the company builds its artificial-intelligence services. Amazon expects fourth-quarter net sales of $181.5 billion to $188.5 billion compared with estimates for $186.3 billion.
Intel - Intel rose 7.8% after the chip maker issued abetter-than-expected fourth-quarter earnings forecast after third-quarter revenue fell 6% to $13.28 billion, but topped estimates for $13.02 billion. Intel posted a net loss of $16.6 billion in the third quarter that included charges from the company’s cost-reduction plan. Intel said it expects adjusted earnings of 12 cents a share in the fourth quarter, higher than Wall Street estimates for 8 cents, on revenue of $13.3 billion to $14.3 billion.
Boeing - Boeing rose 3.5% after the plane maker reached a deal for a new tentative offer for its striking workers in the Pacific Northwest. The union has slated a vote for Monday. The new deal includes 38% wage increases over four years and a $12,000 ratification bonus. Union members have rejected two deals, one that raised wages by about 25%, and another that boosted wages by about 35%.
Atlassian - Atlassian, the software company, jumped 19% on fiscal first-quarter earnings and revenue that were better than Wall Street forecasts. Revenue jumped 21% to $1.19 billion, compared with expectations for about $1.16 billion.
Super Micro Computer - Super Micro Computer dropped 10.5%. The stock has been infree fall this week after the server maker disclosed its accounting firm had resigned.
Abbott Laboratories - Abbott Laboratories rose 4.6% after a jury found the company wasn’t responsible for a young boy’s intestinal disease, the result of a lawsuit that alleged the company failed to warn that its formula for premature infants increased the risk for a bowel disease.
MasTec - MasTec, an energy-infrastructure company,raised its earnings outlook for the yearafter third-quarter earnings beat analysts’ expectations. Shares rose 5.8% in Friday trading.
Charter - Charter Communications gained 11.9% after the cable giant beat quarterly earnings estimates.
Exxon Mobil, Chevron - Exxon Mobil fell 1.6% after the oil giantbeatearnings expectations and hiked its dividend. Chevron reported quarterly earnings above analysts’ expectations, even as earnings decreased from a year ago. Chevron was up 2.9% in afternoon trading.
Avis Budget - Avis Budget Group shares rose 10.9%. The car-rental company turned in disappointing quarterly results but management offered upbeat commentary. “We maintained a strong focus on pricing throughout the quarter, prioritizing higher margin business which allowed us to keep our revenue per day stable with the Americas nearly flat,” said CEO Joe Ferraro in the earnings release.
Globalstar - Globalstar stock soared 31.4% on Friday after it disclosed an expanded agreement with iPhone maker Apple. Globalstar will deliver expanded services to Apple over a new mobile satellite services network, including a new satellite constellation, expanded ground infrastructure, and increased global MSS licensing, the satellite communications company said Friday.
Market News
U.S. Economy Added Just 12,000 Jobs in October, Impacted by Hurricanes, Boeing Strike
Nonfarm payrolls increased by 12,000 for the month, down sharply from September and below the Dow Jones estimate for 100,000.
The unemployment rate held at 4.1%, in line with expectations.
The BLS noted that the Boeing strike likely subtracted 44,000 jobs in the manufacturing sector, while hurricanes also likely held back the total.
Revisions lowered previously reported job creation totals by 112,000 for August and September combined.
Nvidia to Take Intel's Spot on Dow Jones Industrial Average
Intel will be replaced by Nvidia on the blue-chip Dow Jones Industrial Average index after a 25-year run, underscoring the shift in the chipmaking market and marking another setback for the struggling semiconductor firm.
Nvidia will join the index next week along with paint-maker Sherwin-Williams, which will replace Dow, S&P Dow Jones Indices said on Friday.
Once the dominant force in chipmaking, Intel has in recent years ceded its manufacturing edge to rival TSMC and missed out on the generative artificial intelligence boom after missteps including passing on an investment in ChatGPT-owner OpenAI.
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