Stocks were higher from the opening bell onward after the monthly BLS jobs report was likely a "Goldilocks" scenario for equities. The report wasn't as bad as feared following worrying data earier this week, but it also was not so strong that it should have any guaranteed impact on Fed policy. The headline change in non-farm payrolls was a bit below expectations, but the unemployment rate came in better than expected at 3.5%. Stocks extended their gains with added support from optimistic comments on the upcoming U.S.-China trade talks from President Trump, who said he sees a "very good chance" of making a trade deal, but that the U.S. will only make a deal that is "tough" and in the best interests of the country.
ECONOMIC EVENTS: In the U.S., nonfarm payrolls increased 136,000 in September after a 168,000 gain in August that was revised up from a prior 130,000 estimate. The unemployment rate fell to 3.5% in September, hitting its lowest level since 1969. Average hourly earnings were unchanged month-over-month and were up 2.9% year-over-year. The trade deficit widened out 1.6% to $54.9B in August. In energy news, Baker Hughes reported that the U.S. rig count is down 5 rigs from last week to 855.
TOP NEWS: Shares of HP Inc. (HPQ) dropped over 9.5% after the company announced plans to slash its workforce by 7,000-9,000 employees, with annual cost savings of about $1B by the end of fiscal 2022. At its Securities Analyst Meeting yesterday, where it announced the new restructuring plan, HP Inc. also announced new earnings per share guidance for fiscal 2020, a 10% increase in its dividend for fiscal 2020, and an incremental $5B in share repurchases.
Apple (AAPL) shares were 2.8% higher after the Nikkei Asian Review said that the U.S. tech giant has informed its component suppliers to ramp up production for its latest iPhone 11 range by up to 10%, or 8 million units. Shares of publicly traded Apple component suppliers, including NXP Semiconductors (NXPI), Skyworks (SWKS), Texas Instruments (TXN), Cirrus Logic (CRUS), and Intel (INTC), edged higher after the news.
Meanwhile, the Wall Street Journal reported that Disney (DIS) is banning advertising from Netflix (NFLX) across its entertainment TV networks, including ABC and the Disney Channel. The shift in ad strategy comes ahead of the launch of Disney+ in November.
Additionally, the Journal reported that Google (GOOG) has held talks about acquiring Firework, a free video-sharing app that could help the tech giant counter TikTok. China's Weibo (WB) has also expressed interested in Firework, the Journal noted.
MAJOR MOVERS: Among the noteworthy gainers were Avaya (AVYA) and RingCentral (RNG), which rose 30.7% and 28.2%, respectively, after the companies announced a commercial agreement that will make RingCentral the exclusive provider of unified communications as a service solutions to Avaya. Also higher was Snap (SNAP), which gained 1.5% after Morgan Stanley analyst Brian Nowak upgraded the stock to Equal Weight from Underweight with a price target of $17, up from $14.
Among the notable losers was Cedar Fair (FUN), which fell 4.4% after Reuters reported that it has turned down an acquisition offer from Six Flags (SIX) that it views as inadequate. Six Flags had offered to acquire Cedar Far for roughly $70 per share in cash and stock, which would value the smaller park operator at around $4B, according to Reuters. Also lower was Aimmune Therapeutics (AIMT), which slid 4.7% after the FDA accepted for review an application for DBV Technologies' (DBVT) potentially competing peanut allergy treatment.
INDEXES: The Dow rose 372.68, or 1.42%, to 26,573.72, the Nasdaq gained 110.21, or 1.4%, to 7,982.47, and the S&P 500 advanced 41.38, or 1.42%, to 2,952.01.
HP Inc.
-1.765 (-9.59%)
Apple
+6.12 (+2.77%)
NXP Semiconductors
+2.49 (+2.32%)
Skyworks
+3.35 (+4.33%)
Texas Instruments
+1.4 (+1.09%)
Cirrus Logic
+1.37 (+2.57%)
Intel
+0.86 (+1.72%)
Disney
+2.1 (+1.64%)
Netflix
+4.28 (+1.59%)
Alphabet
+21.16 (+1.78%)
Alphabet
+22.62 (+1.90%)
+1.3 (+2.81%)
Avaya
+3.135 (+31.09%)
DBV Technologies
+0.13 (+1.49%)
Bought by NSRGY
-1.12 (-4.75%)
Six Flags
+0.67 (+1.38%)
Cedar Fair
-2.66 (-4.38%)
Snap
+0.23 (+1.61%)
RingCentral
+35.93 (+28.20%)