To The Moon

U.S. stocks ended higher and the Nasdaq gained more than 1% on Wednesday, a day after a sell-off, as the latest economic data showed U.S. private payrolls increased less than expected in September.

Market Snapshot

The Dow Jones Industrial Average rose 127.17 points, or 0.39%, to 33,129.55, the S&P 500 gained 34.3 points, or 0.81%, at 4,263.75 and the Nasdaq Composite added 176.54 points, or 1.35%, at 13,236.01.

Market Movers

Tesla (TSLA)’s 5.9% increase brought the share price to about $261 for the stock when markets closed Wednesday afternoon. This comes despite a report released Monday that showed a 7% decline in vehicle deliveries during the third quarter, something the company blamed on factories being temporarily shut down for upgrades. Still, investors bet on a fourth-quarter rebound with the launch of a revamped Model 3 car in China and the expected launch of the Cybertruck, according to Investor’s Business Daily.

Apple (AAPL) was downgraded to Sector Weight from Overweight at KeyBanc with the analysts saying the stock has been trading at near all-time-high multiples and a historically large premium to the Nasdaq, and that they see soft growth from the iPhone maker’s Americas region. KeyBanc has no price target on Apple shares. The stock rose 0.7% to $173.66.

Cal-Maine Foods (CALM) reported fiscal first-quarter earnings that missed analysts’ expectations and said sales slumped about 30% as average egg prices tumbled to $1.59 per dozen from $2.28 a year earlier. Shares of the egg producer fell 7.3%.

A10 Networks (ATEN) fell 27.2% after the cloud security software company said it expected third-quarter revenue of $56.5 million to $58.5 million, down from $72.1 million a year earlier and below analysts’ estimates of $74.6 million. The company said it experienced “delays related to North American service provider customers pushing out capital expenditures.”

Sunrun (RUN) fell 1.1% to $10.54 and Sunnova Energy (NOVA) rose 2.2% to $9.62 after shares of both solar companies were downgraded to Hold from Buy at Truist. The firm cut its price target on Sunrun to $12 from $30 and reduced the target on Sunnova to $11 from $35.

Industrial technology company Acuity Brands (AYI) reported fiscal fourth-quarter adjusted earnings of $3.97 a share, higher than Wall Street estimates of $3.73. Sales fell to $1.01 billion from $1.11 billion a year earlier and missed forecasts of $1.02 billion. The stock rose 6.9%.

Phillips 66 (PSX) declined 4.5% and Marathon Oil (MRO) was down 5% as oil prices retreated. West Texas intermediate crude, the U.S. benchmark, fell 5% to $84.74 a barrel amid demand concerns.

Palantir Technologies (PLTR) was up 5.6% following a report from Bloomberg that said the company has emerged as the top pick for a contract to overhaul the U.K.’s National Health Service.

Tilray (TLRY) declined 0.9% after the cannabis company posted a wider-than-expected first-quarter loss.

RPM International (RPM), a maker of coatings, sealants, and building materials, rose 6.3% after adjusted earnings in its fiscal first quarter topped estimates and sales of $2.01 billion, up 4% from a year earlier, also were higher than expected.

Market News

Pelosi, Hoyer Get Evicted From Prime Capitol Space After McCarthy Ousted

The power grabs that play out in the corridors of Wall Street and at Hollywood studios are showing up in Congress as the ouster of Kevin McCarthy prompts a reshuffle of some prime office space in the US Capitol.

No speaker has before been voted out of office, and questions abound about what’s next. But one thing was immediately clear, at least to interim speaker Patrick McHenry: McCarthy has rights to a first-floor speaker emeritus hideaway occupied by his predecessor, Nancy Pelosi.

The usually affable North Carolina Republican, inflamed by the ouster of his long-time political ally, swiftly evicted Pelosi from the unmarked room. Steny Hoyer, Pelosi’s longtime No. 2, also got the boot from his own unofficial digs in the Capitol.

Rivian Sinks After EV Maker Plans Convertible Note Offering

Rivian Automotive Inc. sank in post market trading Wednesday after the electric-vehicle maker announced plans to issue $1.5 billion in convertible debt and reported preliminary third-quarter revenue.

Shares of Rivian fell as much as 7% to $22.03 after the disclosure and regular trading. The stock had risen about 29% this year as of the close on Wednesday.

The Irvine, California-based company said in a securities filing that it planned to offer green convertible senior notes due in 2030 as a private offering to qualified institutional buyers. It granted the purchasers an option to buy an additional $225 million.

BlackBerry to Separate IoT and Cybersecurity Businesses, Plans IPO

Canadian technology company BlackBerry, said on Wednesday it would separate its Internet of Things (IoT) and cybersecurity business units and target a subsidiary initial public offering for the IoT business next fiscal year.

BlackBerry joins a number of companies that have split their units in recent years, favoring a leaner corporate structure to help investors better evaluate their separate businesses.

U.S.-listed shares of Waterloo, Ontario-based BlackBerry rose more than 4% in trading after the bell. The shares have fallen more than 18% since Reuters reported in August that private equity firm Veritas Capital had made an offer to buy the company.