Dow Jones Today: Stocks moderate gains after post-jobs-report rise
Rivian slashes production outlook as EV maker tumbles
39 minutes ago
Rivian Automotive ( RIVN ) shares sank Friday after the electric vehicle maker missed third-quarter delivery estimates and cut its full-year production outlook due to difficulty getting a part.
Rivian said it manufactured 13,157 EVs and delivered 10,018 during the quarter. Analysts polled by Visible Alpha were looking for delivery of 12,08O. The company's latest news extends a recent slide in a stock that has fallen from levels seen after Volkswagen's investment this summer.
The company has cut its 2024 production forecast due to a supply shortage of a component used to make its R1S SUV and RCV commercial van. It added that the problem began in the third quarter and “has become more acute in recent weeks and has continued.”
Rivian now estimates it will make 47,000 to 49,000 EVs this year, down from its previous forecast of 57,000.
Rivian shares were down 7% in recent trading and have lost more than half their value since the start of the year.
–Bill McCall
Frontier, JetBlue Soar of Spirit In Bankruptcy Talks Report
1 hour 11 minutes ago
Shares of Frontier Group Holdings ( ULCC ) and JetBlue Airways ( JBLU ) lifted Friday on a report that discount airline rival Spirit Airlines ( SAVE ) is considering bankruptcy. Spirits shares fell 25% shortly after the market opened.
The Wall Street Journal reported that Spirit is in discussions with bondholders and other creditors about the possible terms of a Chapter 11 filing, though it noted that such a filing is not imminent. The paper said Spirit was also looking at restructuring its balance sheet through an out-of-court deal, though the focus was on bankruptcy talks.
Spirit has faced losses and declining revenue amid tough competition from both low-cost rivals and major airlines. It failed in its $6.6 billion plan to merge with Frontier in 2022. After that, Spirit agreed to a takeover of JetBlue, only to see it collapse this year as regulators challenged it over antitrust concerns.
Frontier shares rose 21% in recent trading, while JetBlue rose 17%.
–Bill McCall
Treasury yields rise, rate cut expectations fall
2 hours 24 minutes ago
Treasury yields jumped after a surprisingly strong jobs report allayed some fears that the Federal Reserve would have to come to the rescue of a weak labor market and market expectations for an interest rate cut eased Friday morning.
Market participants lowered their rate cut forecasts in the wake of the report. The odds of the Fed cutting rates by 50 basis points, or half a percentage point, at its next meeting in November fell from 30% to about 5%, according to federal funds futures trading data. Market participants are now pricing in a less than 30% chance that the Fed will cut its benchmark rate by a total of 75 basis points by the end of the year, compared with 56% odds at yesterday's price.
The revised expectations aligned Wall Street's view with Fed officials, who forecast rate cuts at each of the two remaining meetings this year in their quarterly economic projections.
Treasury yields rose in the wake of the report, with the 10-year yield jumping nearly 10 basis points to 3.95%, the highest level since mid-August. The 2-year Treasury yield, heavily influenced by market expectations for the Fed's benchmark interest rate, jumped 15 basis points to 3.87%, a one-month high.
–Colin Ledley
Major indicators stock futures higher than jobs data
4 hours 17 minutes ago
Futures linked to the Dow Jones Industrial Average rose 0.1%.
S&P 500 futures rose 0.3%.
Nasdaq 100 futures rose 0.4%.