The Dow posted a record closing high on Friday and the Nasdaq ended with a more than 1% gain as a stronger-than-expected jobs report reassured investors who had worried the economy may be getting too weak.
Market Snapshot
The Dow Jones Industrial Average rose 341.16 points, or 0.81%, to 42,352.75, the S&P 500 gained 51.13 points, or 0.90%, to 5,751.07 and the Nasdaq Composite added 219.37 points, or 1.22%, to 18,137.85.
Market Movers
Tesla - Tesla shares rebounded 3.9% on Friday. News of another recall of Tesla vehicles wasn’t hurting the stock again. Tesla is recalling 27,185 Cybertrucks, essentially all the trucks it has ever delivered, to fix an image lag on the rearview camera when the vehicle shifts into reverse.
Chinese ADRs - Chinese ADRs jumped again on Friday. Direxion Daily FTSE China Bull 3X Shares rose 10.9%; Alibaba rose 1.5%; PDD Holdings and Baidu rose 1.1%; JD.com rose 5.3%; NIO rose 1%; Li Auto rose 1.6%; XPeng rose 3.3%; Bilibili rose 1.9%; Trip.com rose 5.9%; iQiyi rose 4%; Tencent ADR rose 2.3%; Tiger Brokers rose 34.8%.
Spirit Airlines - Spirit Airlines fell 24.6% to $1.69 after The Wall Street Journal reported the low-cost carrierwas in discussions with bondholders over the terms of a potential bankruptcy filing following its failed merger with JetBlue Airways. The Journal report cited people familiar with the matter.
Palantir - Palantir Technologies rose 2% to $40.01 and on track for a record closing high. Shares of the provider of data-analytics software rose 4.7% in the previous session and finished at a record $39.25. Coming into Friday, the stock has risen 129% this year and 136% over the past 12 months. Palantir was added to the S&P 500 on Sept. 23.
Rivian - Rivian Automotive fell 3.2% after the electric-vehicle company said it was “experiencing a production disruptiondue to a shortage of a shared component on the R1 and RCV platforms,” leading the company to cut its guidance for full-year deliveries. Rivian reported third-quarter production of 13,157 units, down 19% from a year earlier, and customer deliveries of 10,018 vehicles, down 36%.
EVgo - EVgo was up 13.9%, extending gains after shares of the electric-vehicle company jumped 61% on Thursday after receiving a conditional commitment for a $1.05 billion loan from the Department of Energy. Shares also moved higher after being upgraded to Overweight from Neutral at J.P. Morgan.
CVS Health - CVS Health rose 2.7% to $64.59. Shares of thehealthcare giantwereupgraded to Buy from Holdat TD Cowen and the price target was raised to $85 from $59. Reports this week said the company’s board was conducting a strategic review and that a breakup was on the table.
Apogee Enterprises - Apogee Enterprises, the architectural products and services company, rose 22.7% after fiscal second-quarter earnings topped analysts’ estimates and the company boosted earnings guidance for the fiscal year.
Albemarle - Lithium miner Albemarle jumped 8.3% following a report in the Australian that said Rio Tinto might be looking at acquisitions in the lithium space.
Market News
Blowout US Employment Report Reinforces Economy's Resilience
U.S. job gains increased by the most in six months in September and the unemployment rate fell to 4.1%, pointing to a resilient economy that likely does not need the Federal Reserve to deliver large interest rate cuts for the rest of this year.
Nonfarm payrolls increased by 254,000 jobs last month, the most since March, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had forecast payrolls would rise by 140,000 positions after advancing by a previously reported 142,000 in August.
Financial markets boosted the odds of a quarter-percentage-point rate reduction in November to 95% from 71.5% before the report, CME Group's FedWatch tool showed. The odds of a 50-basis-point cut were almost wiped out.
EU Presses Ahead with Chinese EV Tariffs After Divided Vote
The European Union will press ahead with hefty tariffs on China-made electric vehicles, the EU executive said on Friday, even after the bloc's largest economy Germany rejected them, exposing a rift over its biggest trade row with Beijing in a decade.
The proposed duties on EVs built in China of up to 45% would cost carmakers billions of extra dollars to bring cars into the bloc and are set to be imposed from next month for five years.
The Commission, which oversees the bloc's trade policy, has said they would counter what it sees as unfair Chinese subsidies after a year-long anti-subsidy investigation, but it also said on Friday it would continue talks with Beijing.
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