US EQUITY OPEN: Stocks rally after stellar NFP report while traders pare 50bp bets

OPEN: Stocks have opened well in the green, with outperformance in the Russell2k after a stellar NFP print. The majority of sectors are higher, with outperformance in Consumer Discretionary, Financials and Technology, while defensives like Utilities, Real Estate and Consumer staples are lagging. The NFP headline print surged above all analyst forecasts, printing 254k, above the 140k forecast and rising from the prior (revised up) 159k. The unemployment rate ticked down to 4.1% from 4.2% while wages also came in above expectations. Overall it is a very hot print and eases recent labour market concerns after a string of soft reports. However, some analysts are cognizant of downward revisions to such a large number. The data saw money markets start to price-out a 50bps rate cut in November, with now just 26bps priced, and vs 34bps pre-data. After the hot print, the Dollar is rallying while T-notes are bear-flattening. Crude prices are continuing the rally seen this week on mid-east escalation, but currently off highs. Looking ahead, there is little scheduled for the rest of the session, aside from three interviews with Fed's Gooslbee (2025 voter), who has already spoken several times since the latest FOMC, and has taken a dovish tone, although we will be looking to see his commentary on the September jobs report. Attention next week turns to US CPI. 

STOCK SPECIFICS:

• Thermo Fisher (TMO): Greenville plant in North Carolina was found in breach of FDA regulations.


• Spirit Airlines (SAVE): Exploring a potential chapter 11 bankruptcy filing, according to WSJ.


• Rivian (RIVN): Cuts FY production guidance due to experiencing a production disruption due to a shortage.


• AbbVie (ABBV): Cut 2024 profit forecast, citing USD 82mln in research and development expenses tied to collaborations and acquisitions.


• Barnes Group (B): Apollo is in advanced talks to acquire the Co., with the deal potentially valuing Barnes at over USD 45/shr (vs Thursday close of USD 40.06/shr).


• Nvidia (NVDA): DoJ and SEC support a class-action suit against Nvidia, alleging it misrepresented its sales to crypto miners, Cointelegraph reports.


• ExxonMobil (XOM): Despite it estimating Q3 earnings may be negatively impacted by USD 0.6-1.0bln from changes in oil prices, and by USD -0.2bln to +0.2bln from gas prices, citing market dynamics and planned activities.


• Summit Therapeutics (SMMT): FDA granted Cos. cancer drug a fast-track designation

04 Oct 2024 - 14:55- EquitiesEconomic Commentary- Source: Newsquawk