Stock market today: Stocks rise after broad jobs report, unemployment rate declines

Stocks rose on Friday as investors welcomed a key monthly jobs report that showed hiring in the U.S. economy remained strong. The Middle East crisis and the return to work at US ports were also in high focus.

The S&P 500 (^GSPC) gained 0.5%, while the Dow Jones Industrial Average (^DJI) added 0.4%. The tech-heavy Nasdaq Composite (^IXIC) moved 0.6% higher.

September's jobs report largely beat expectations as the U.S. economy added 254,000 jobs last month and the unemployment rate fell to 4.1%. Overall, the report found the labor market remains strong, even amid signs it is cooling. Josh Shaffer of Yahoo Finance has more details here.

Jobs reports pointed to a smaller interest rate cut from the Federal Reserve next month. According to the CME FedWatch tool, more than 90% bet on a 25 basis point cut, versus a larger 50 basis point cut.

Read more: What Fed Rate Cuts Mean for Bank Accounts, CDs, Loans and Credit Cards

Stocks are looking to recover weekly losses, as markets showed some resilience in the face of a rough week of worrying headlines. The S&P 500 and Dow are still within striking distance of record highs, with major gauges off 1% or less as of Thursday's close.

In recent days, a massive port strike, the devastation of Hurricane Helen and the prospect of a wider conflict in the Middle East have raised prices and fan inflation.

In a welcome move, a strike by US dockworkers ended after a tentative wage deal was agreed late on Thursday, although some issues remain to be settled later this year.

On the negative side, an Israeli barrage in Beirut kept alive Middle East concerns that sent oil prices higher. Western leaders warned of “uncontrolled escalation” as investors waited to see if Israel would attack Iran's oil installations — a move President Biden said was under discussion.

Oil is on track for its biggest weekly gain in two years as tensions rise. Brent crude (BZ=F) and West Texas Intermediate (CL=F) futures were up 0.8% on Friday morning, after rising 5% the previous day.

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Friday, October 4, 2024 at 8:00 AM PDT

Spirit Airlines stock fell 25% amid reports of possible bankruptcy, while other airlines rose.

Spirit Airlines ( Reserve ) shares fell on Friday after reports from The Wall Street Journal and Bloomberg suggested the budget carrier could be close to bankruptcy.

The Journal said late Thursday that Spirit is in talks with bondholders about the terms of a potential bankruptcy filing. Bloomberg reported Friday that Spirit has stalled on securing a rescue deal with bondholders to restructure its debt — and, therefore, avoid bankruptcy.

Spirit's shares have fallen 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' shares rose. JetBlue stock rose more than 15% on Friday. Frontier Airlines ( ULCC ) shares jumped 21%. Shares of Delta Air Lines ( DAL ), American Airlines ( AAL ), and United Airlines ( UAL ) rose in the low single digits.
Fri, Oct 4, 2024 at 7:15 am PDT

Morning trading stock trending

Here are some of the top stocks on Yahoo Finance's Trending Tickers page during Friday morning trading:

Rivian (RIVN): Shares of the electric vehicle maker fell 7% on Friday morning after the company cut its production forecast for the year and deliveries fell short of expectations due to increased demand and parts shortages.

Spirit Airlines (save): The budget carrier fell nearly 25% on Friday after the Wall Street Journal reported that the company is in talks with bondholders about a possible bankruptcy filing following its failed merger with JetBlue ( JBLU ).

meta (meta): The social media company rose 0.5% after announcing it had developed a new artificial intelligence model to compete with OpenAI, which can generate video and audio based on user prompts. Dubbed Movie Zen, the model will allow users to edit existing videos via text inputs. According to a company blog post.

CVS (CVS): Shares of the pharmacy chain rose nearly 3% after an upgrade from TD Cowen. Its analysts moved the stock from a hold to a buy, citing changes to the 2025 Medicare Advantage plan that CVS announced earlier this week.
Fri, Oct 4, 2024 at 6:35 am PDT

Stocks rise after broad jobs report beat

Investors received a very encouraging jobs report on Friday that showed hiring in the US economy remains strong.

The S&P 500 (^GSPC) gained 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 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, Oct 4, 2024 at 6:07 am PDT

Markets priced in less Fed easing after strong jobs report

An expected September jobs report on lower interest rate cuts from the Federal Reserve in 2024 pushed the market much stronger.

After the report, markets priced in a roughly 10% chance that the Fed would cut interest rates by half a percentage point in November, according to the CME FedWatch tool, down from a 53% chance seen a week earlier.

Robert Sokin, Citi's senior global economist, told Yahoo Finance that the better-than-expected jobs report made the Fed less likely to proceed with “urgency” when the central bank cut interest rates in half at its September meeting. percentage points.

“It pushes the Fed out a lot,” he said, adding that it is uncertain whether the Fed will cut 50 basis points again this year.

“Looking at the labor market strength evident in the September employment report, the Fed's real debate should be whether to ease monetary policy at all,” Paul Ashworth, chief North American economist at Capital Economics, wrote in a note to clients on Friday. “A no hope [50 basis point] The cut is long gone.”

Read more: Jobs, Inflation, and the Fed: How They Are Related
Fri, Oct 4, 2024 at 5:50 am PDT

September jobs report crushes expectations as US economy adds 254,000 jobs, unemployment rate falls to 4.1%

The U.S. labor market added more jobs than expected in September while the unemployment rate unexpectedly fell, reflecting a much stronger job market picture than Wall Street expected.

Data from the Bureau of Labor Statistics released Friday showed the labor market added 254,000 payrolls in September, more than the 150,000 expected by economists.

Meanwhile, the unemployment rate fell to 4.1% from 4.2% in August. Job additions in September came in higher than a revised 159,000.

Read more here.