- The US jobs report exceeded expectations, with non-farm payrolls surging over 250k.
- The unemployment rate declined for the second consecutive month to 4.1%.
- Equities rebounded on a fresh recommendation, with Chinese ADRs recovering from Thursday's selloff.
- Rivian shares tumbled as the company slashed its production forecast for the year.
US indices opened sharply higher, driven by a buoyant US jobs report that tempered recession fears. Non-farm payrolls surged 254k in September, while the unemployment rate dipped to 4.1%. This robust data points to potential strength in consumer spending and GDP growth in the third and fourth quarters, defying recent expectations of a slowdown.
The US500 is just 0.6% shy of its all-time highs set last week. Today's trading saw the index test the 5800 level, coinciding with a 113.0% Fibonacci retracement of the recent summer rally. Concurrently, bond yields have surged, as reflected in falling bond prices. If the uptrend persists, the next significant target is around 5900; support lies at 5725.
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Source: xStation5
Company News:
- CVS Health (CVS.US) gained over 3% on plans to potentially split into two divisions: pharmaceutical and insurance. TD Cowen upgraded the stock on improved prospects for its Medicare Advantage plan.
- Rivian Automotive (RIVN.US) shed nearly 4% after slashing its production forecast for the year due to supply chain constraints. The company delivered 10k vehicles in Q3, missing analyst estimates.
- Despite Rivian's problem, Amazon (AMZN.US) is up today by more than 3% as it plans to boost workforce by 250k for Holidays this year which indicate a robust retail sales in coming months.
- Chinese ADRs rebounded after Thursday's selloff, with Alibaba, JD, and Tencent posting gains.
