US close: Stocks surge, Dow sets new record after non-farm payrolls beat

(Sharecast News) - US stocks finished with strong gains on Friday, with the Dow once again reaching a record high, on the back of a bumper employment report which showed that the American economy added significantly more jobs than expected in September. The data also revealed that unemployment rate unexpectedly fell, dashing any expectations of a potential 50 basis points rate cut by the Federal Reserve next month. The data gave stocks a boost as investors temporarily shrugged off escalating tensions in the Middle East which have weighed heavily on market sentiment over recent days.

"This positive employment report led to an increase in US stock prices, Treasury yields and the greenback as investors reacted favourably to the news," said Axel Rudolph, senior technical analyst at IG. "These encouraging economic indicators helped alleviate concerns about a potential slowdown in the US economy and reinforced confidence in the Federal Reserve's ability to achieve a 'soft landing' for the economy. "

The Dow finished the day up 0.8% at a new high of 42,352.75, while the S&P 500 rose 0.9% to 5,751.07, just shy of last week's record close of 5,762.48. The Nasdaq, meanwhile, gained 1.2% to 18,137.85.

According to figures from the Labor Department, total non-farm payrolls rose by 254,000 from August, versus expectations for a 140,000 increase. The figure for August was revised up to a 159,000 gain from 142,000.

The unemployment rate fell to 4.1% in September from 4.2% the month before, surprising economists who had expected no change. The data also showed that annual wage growth ticked up to 4% from 3.9% in August.

"The September employment report was positive across the board, reducing the downside risks to the labor market and increasing our conviction that the Federal Reserve will only cut the target range for the fed funds rate by 25bps in November," said Ryan Sweet, chief US economist at Oxford Economics.

Market movers

Spirit Airlines shares plunged 25% following a Wall Street Journal report which claimed the low-cost carrier was mulling over filing for bankruptcy.

The company has been attempting to restructure its balance sheet and $3.3bn debt pile following the failed $3.8bn merger with JetBlue Airways earlier this year, after it was blocked on competition concerns. Shares in JetBlue jumped 14% on the news.

Electric vehicle manufacturer Rivian traded 3% lower after cutting its full-year production guidance by 8,000 to 10,000 units.

Coeur Mining dropped 9% on the news it has agreed to buy Canada's SilverCrest Metals in a $1.7bn deal. The US miner said the deal would create a leading global silver company producing around 21m oz of silver annually.

Shipping stocks worldwide, including US-listed ZIM Integrated Shipping Services, tanked after the resolution of the Los Angeles port workers' strike, which has quashed the prospect of higher freight rates.

Dow Jones - Risers

Boeing Co. (BA) $155.00 2.98% JP Morgan Chase & Co. (JPM) $211.22 2.92% American Express Co. (AXP) $275.94 2.75% Salesforce.Com Inc. (CRM) $287.67 2.43% Goldman Sachs Group Inc. (GS) $495.16 1.86% Walt Disney Co. (DIS) $95.15 1.62% Dow Chemical Co. (DOW) $55.34 1.54% Caterpillar Inc. (CAT) $397.09 1.53% Intel Corp. (INTC) $22.59 1.48% International Business Machines Corporation (CDI) (IBM) $226.00 1.47%

Dow Jones - Fallers

Home Depot Inc. (HD) $408.36 -0.78% Verizon Communications Inc. (VZ) $44.18 -0.76% Procter & Gamble Co. (PG) $168.88 -0.73% Coca-Cola Co. (KO) $70.17 -0.50% Merck & Co. Inc. (MRK) $109.77 -0.37% Chevron Corp. (CVX) $150.74 -0.34% Unitedhealth Group Inc. (UNH) $591.14 -0.26% Johnson & Johnson (JNJ) $160.30 -0.13% Microsoft Corp. (MSFT) $416.06 -0.12%

S&P 500 - Risers

VF Corp. (VFC) $21.31 9.11% Albemarle Corp. (ALB) $102.09 8.25% United Airlines Holdings Inc (UAL) $59.22 6.47% American Airlines Group (AAL) $11.51 6.38% Discover Financial Services (DFS) $144.89 6.25% Capital One Financial Corp. (COF) $153.44 5.67% American International Group Inc. (AIG) $76.08 5.13% Advanced Micro Devices Inc. (AMD) $170.90 4.94% Norwegian Cruise Line Holdings Ltd (NCLH) $20.39 4.89% Synchrony Financial (SYF) $51.86 4.64%

S&P 500 - Fallers

Transdigm Group Inc. (TDG) $1,357.59 -4.48% Extra Space Storage (EXR) $169.48 -3.87% Equifax Inc. (EFX) $283.60 -3.37% D. R. Horton Inc. (DHI) $184.64 -2.93% Mohawk Inds Inc. (MHK) $154.37 -2.56% Lennar Corp. Class A (LEN) $182.25 -2.49% PulteGroup Inc. (PHM) $139.45 -2.47% Crown Castle International (CCI) $111.48 -2.46% American Tower Corp (Reit) (AMT) $223.56 -2.45% Public Storage (PSA) $345.57 -2.15%

Nasdaq 100 - Risers

Qurate Retail Inc. (QRTEA) $0.68 15.26% American Airlines Group (AAL) $11.51 6.38% Trip.com Group Limited (TCOM) $68.43 5.88% JD.com, Inc. (JD) $46.97 5.31% Tesla Inc (TSLA) $250.08 3.91% Illumina Inc. (ILMN) $141.43 3.72% Broadcom Inc. (AVGO) $176.64 2.76% Take-Two Interactive Software Inc. (TTWO) $151.69 2.73% Paypal Holdings Inc (PYPL) $79.36 2.65% Expedia Group Inc. (EXPE) $150.72 2.64%

Nasdaq 100 - Fallers

Sirius XM Holdings Inc (SIRI) $22.73 -1.94% Verisk Analytics Inc. (VRSK) $265.67 -1.85% Seagate Technology Plc (STX) $107.24 -1.43% J.B. Hunt Transport Services Inc. (JBHT) $164.52 -1.33% Idexx Laboratories Inc. (IDXX) $477.67 -1.21% Ross Stores Inc. (ROST) $145.58 -0.82% Fastenal Co. (FAST) $70.18 -0.75% Paychex Inc. (PAYX) $138.65 -0.51% Liberty Global plc Series A (LBTYA) $20.97 -0.47% Liberty Global plc Series C (LBTYK) $21.65 -0.46%