Stocks Slip After Hitting New Highs Following Jobs Report; Treasury Yields Hit 5-Month Low Amid Rate-Cut Hopes

Big S&P 500 Movers on Friday

2 hr 33 min ago

Decliners

Lululemon Athletica (LULU) shares fell the most of any stock in the S&P 500 on Friday, plummeting 18.6%. The maker of athletic apparel posted softer-than-expected same-store sales growth for its fiscal second quarter and trimmed its full-year revenue guidance, pointing to tariff impacts and sluggish U.S. sales. Jefferies analysts suggested Lululemon could face even tougher conditions ahead, citing competitive pressures and doubts about the company’s pipeline of new designs.
Shares of Kenvue (KVUE) dropped 9.4% after The Wall Street Journal  reported the Department of Health and Human Services, under the leadership of Robert F. Kennedy, Jr., plans to release a report suggesting a link between autism and pregnant women’s use of Tylenol. The popular over-the-counter painkiller is made by Kenvue subsidiary McNeil Consumer Healthcare. A Kenvue spokesperson on Friday contested the claims allegedly made by the report.
Advanced Micro Devices (AMD) shares tumbled 6.6% as Seaport Research downgraded the chipmaker’s stock to “hold” from “buy.” Analysts pointed to signs of slowing demand for AMD’s artificial intelligence accelerators, and noted it could become difficult for the company to meet lofty expectations.

Advancers

Shares of pool equipment supplier Pool Corp. (POOL) advanced 5.5% after Friday’s weak jobs report cemented the case for an interest rate cut at the Federal Reserve’s policy meeting later this month. Expectations of a rate cut caused the 10-year Treasury yield, which influences mortgage rates, to sink to its lowest level since April. Elevated mortgage rates have kept the U.S. housing market in a deep freeze for the last three years, which has dragged on the businesses of homebuilders and home goods producers like Pool.
Tesla (TSLA) proposed a new compensation plan for CEO Elon Musk that could be worth roughly $1 trillion. Reaching that amount would require the electric vehicle maker’s CEO and world’s richest person to achieve certain performance targets, including helping Tesla reach a market cap of $8.5 trillion and a total of 20 million vehicle deliveries. Negotiations around Musk’s compensation have grown contentious in the past, and shareholders are set to vote on the proposed package on Nov. 6. Tesla stock added 3.7% Friday.

-Michael Bromberg

Kenvue Plunges as Report Say RFK Jr. to Link Tylenol to Autism

3 hr 9 min ago

Shares of Tylenol-maker Kenvue (KVUE) plunged over 9% Friday following a report that federal health officials may link use of the painkiller during pregnancy to autism.

Health Secretary Robert F. Kennedy Jr. plans to announce a report saying the use of Tylenol during pregnancy may be one of several causes of autism, The Wall Street Journal reported Friday afternoon, citing people familiar with the matter. A spokesperson for the Department of Health and Human Services told Investopedia  that it is “using gold-standard science to get to the bottom of America’s unprecedented rise in autism rates,” and that until the final report is released, any claims about its contents should be treated as speculation.

Kenvue said the active ingredient in Tylenol, acetaminophen, was studied for more than a decade by the U.S. Federal Drug Administration, which concluded research hasn’t supported a causal link between acetaminophen and autism.

“Nothing is more important to us than the health and safety of the people who use our products,” Kenvue said in a statement. “We have continuously evaluated the science and continue to believe there is no causal link between acetaminophen use during pregnancy and autism.”

RFK Jr., who has pledged to identify the cause of autism, has also previously voiced concerns about vaccines and other medical treatments deemed safe by the medical establishment.

A number of other painkillers and congestion relievers available without prescriptions contain acetaminophen, including Benadryl, Sudafed, DayQuil, Excedrin, NyQuil, Robitussin and Vicks, according to BeMedWise, a patient safety and education group. Benadryl and Sudafed are sold by Kenvue in the U.S., according to Kenvue’s website.

-Sarina Trangle

S&P 500, Nasdaq Post Weekly Gains

3 hr 56 min ago

The benchmark S&P 500 index and the tech-heavy Nasdaq Composite managed to post gains for the week, despite Friday’s modest downturn.

The S&P 500 rose 0.3% this week, while the Nasdaq added 1.1%, as each of the indexes rebounded from slight declines last week. The Dow Jones Industrial Average fell 0.3% this week, declining slightly for the second consecutive week.

So far in 2025, the Nasdaq has risen 12.4%, the S&P 500 is up 10.2%, and the Dow has tacked on 6.7%. Each of the indexes is hovering near a record high.

Tesla Floats a Trillion-Dollar Pay Package for Musk

5 hr 13 min ago

Tesla (TSLA) on Friday unveiled a proposed compensation package for Elon Musk that could grow to roughly $1 trillion if the CEO hits performance targets and collects all of the shares awarded. Between the new plan and shares he owns now, the estimated value of Musk’s implied total stake in Tesla would exceed $2 trillion, cementing his status as the world’s wealthiest human.

Musk has to hit what the company called “Mars-shot milestones”—longer than a moonshot, to be sure—to be compensated in full, according to a company filing. In addition to market-cap milestones attached to the plan’s share-award tranches, the company would have to meet operational milestones that start with product delivery targets and end with adjusted Ebitda hurdles.

The first pair of milestones requires Tesla’s market capitalization to reach and sustain $2 trillion and the company to deliver a cumulative total of 20 million vehicles.

Market-cap targets jump by $500 billion with every tranche, with the last target being $8.5 trillion—more than double the current market cap of Nvidia (NVDA), the most valuable company in the world. Operational milestones include 1 million robotaxis in commercial operation as well as logging $400 billion in adjusted Ebitda over four consecutive quarters.

The last two of the 12 tranche awards would only be granted after Musk sets a succession plan approved by Tesla. And he would have to stay at the company for at least 7 1/2 years.

The plan, on which shareholders are scheduled to vote Nov. 6, could stir up drama if shareholder reactions are anything like receptions to past pay packages. In 2018, a group of Tesla investors balked when shareholders approved a 10-year performance-based pay plan that would award Musk a then-estimated $56 billion.

Read the full article here.

-Crystal Kim

Samsara Stock Jumps on Strong Results, Boosted Outlook

6 hr 4 min ago

Shares of Samsara (IOT) surged Friday, a day after the “internet of things” platform company reported better-than-expected results and boosted its guidance as its base of big customers grew.

Samsara, which provides technology for businesses to track and manage vehicles, equipment and operations in real time, posted fiscal 2026 second-quarter adjusted earnings per share (EPS) of $0.12, with revenue jumping 30% year-over-year to $391.5 million. Both exceeded Visible Alpha forecasts.

Annual recurring revenue (ARR) at the end of the quarter increased 30% to $1.64 billion. The number of customers with ARR of more than $100,000 grew 31% to 2,771, and those accounted for about $1 billion of Samsara’s ARR.

“We’re seeing firsthand how the rise of the AI-driven economy is amplifying demand for our platform,” CEO and co-founder Sanjit Biswas said.

The company now sees full-year adjusted EPS of $0.45 to $0.47, up from its previous outlook of $0.39 to $0.41.3

It anticipates revenue in the range of $1.574 billion to $1.578 billion, compared to the earlier estimate of $1.547 billion to $1.555 billion.

Samsara shares were up more than 14% in recent trading. Even with today’s advance, the stock is down about 6% since the start of the year.

-Bill McColl

Treasury Yields Hit 5-Month Low as Rate-Cut Bets Grow

7 hr 9 min ago

U.S. Treasurys rallied on Friday as investors bet a weak August jobs report guarantees the Federal Reserve will cut interest rates later this month. 

The yield on the 10-year Treasury note, which influences rates on a wide range of consumer loans like mortgages, dropped 10 basis points to 4.08%. The 2-year yield, which tends to reflect the market’s expectations for monetary policy, fell to 3.47% from 3.6% at Thursday’s close. (Yields move in the opposite direction of bond prices.)

Both yields were at their lowest levels since early April, when President Donald Trump’s “Liberation Day” tariff announcement rattled stocks and instigated an abrupt pivot to the safety of the bond market. 

The U.S. added 22,000 jobs in August, far fewer than economists had expected, according to Bureau of Labor Statistics data released Friday morning. The report, the first since President Trump fired the head of the BLS over July’s disappointing jobs report, also showed the U.S. lost jobs in June, the first monthly decline since December 2020. 

The data dispelled all doubt on Wall Street that the Federal Reserve will resume cutting interest rates in the coming weeks. Federal funds futures trading data put the odds of no rate cut on Sept. 17, when the Fed’s next policy meeting concludes, at 0%, down from about 4% yesterday. The odds of a 50 basis-point cut at the September meeting jumped Friday to about 12% from 0%. Traders are also now pricing in the likelihood that the benchmark rate will be 75 basis points lower by the end of the year, whereas the odds of that were seen as relatively slim yesterday.

The Fed has been in a holding pattern this year, waiting to see how the Trump administration’s tariffs and immigration crackdown impact economic growth, inflation, and the labor market. Policymakers last lowered rates in December. They’ve since resisted pressure from the White House to resume cuts, citing the low unemployment rate, steady jobs growth, and the risk that tariffs will reignite inflation that’s already running above their 2% target. 

“These employment data give the Fed all the reasons it needs to shift its balance of risks and lower rates in two weeks,” wrote Jamie Cox, managing partner at Harris Financial Group, in emailed comments Friday morning. 

-Colin Laidley

Docusign Shares Jump on Strong Quarterly Results

8 hr 28 min ago

Docusign (DOCU) shares jumped Friday after the maker of electronic signature software posted strong quarterly results and boosted its outlook as it added more customers and expanded its AI offerings.

The company reported second-quarter adjusted earnings per share of $0.92, above analysts’ estimates compiled by Visible Alpha. Its revenue rose 9% year-over-year to $800.6 million, and billings were up 13% to $818 million. Both figures also exceeded expectations.

Docusign said its total number of customers grew 9% to more than 1.7 million at the end of the quarter.

CEO Allan Thygesen called it “one of Docusign’s highest growth and profitability quarters in recent years,” thanks in part to “AI innovation launches and recent go-to-market changes.”

The company said it now sees full-year revenue of $3.189 billion to $3.201 billion, up from $3.151 billion to $3.163 billion previously.

Shares of Docusign gained over 5% recent trading. Still, they’ve lost about 11% of their value since the start of the year.

-Bill McColl

Lululemon Cuts Outlook, Stock Plunges

8 hr 45 min ago

Lululemon Athletica (LULU) shares plunged Friday, after the athletic apparel retailer lowered its outlook, pointing to sluggish demand and higher tariffs.

The stock was down nearly 18% in recent trading, bringing its year-to-date loss to about 55%.

Lululemon cut its full-year sales forecast to $10.85 billion to $11 billion, down from $11.15 billion to $11.30 billion as sales slowed, in the second straight quarter the company has trimmed its guidance.

CEO Calvin McDonald said the company was “disappointed” with its U.S. business and “aspects of our product execution” in the second quarter. While Lululemon’s second-quarter revenue of $2.53 billion was roughly in line with analysts’ estimates, its same-store sales rose just 1% year-over-year, below the 2.8% analysts surveyed by Visible Alpha called for as U.S. demand dropped. Adjusted earnings per share of $3.10 exceeded forecasts.

CFO Meghan Frank said the company faces “industry-wide challenges, including higher tariff rates.” Lululemon also cited higher costs tied to the Trump administration’s removal of the de minimis exemption, which previously allowed packages valued at less than $800 to enter the U.S. without being subject to import duties and tariffs.

“It’s going to get worse… much worse through year-end,” Jefferies analysts told clients after the results, saying they believe the guidance “is not low enough,” given rising competition and some skepticism that the company’s pipeline of new styles will resonate

-Bill McColl

Jobs Report Shows Continued Weakening of Labor Market

10 hr 23 min ago

The U.S. economy added 22,000 jobs in August, down from 79,000 in July, the Bureau of Labor Statistics said Friday. That was well short of the 75,000 jobs forecasters had expected, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal. The unemployment rate ticked up to 4.3%, up from 4.2% in July, to the highest since October 2021.

Not only that, but the bureau downwardly revised its previous estimate for job creation in June to a loss of 13,000 jobs rather than the addition of 14,000 jobs previously reported. It was the first time since December 2020 that the U.S. economy had negative job growth.

According to surveys and other economic indicators, many employers have put hiring plans on hold as tariffs have pushed prices and squeezed consumer budgets. Although businesses have mostly avoided mass layoffs so far, the slowdown has raised concerns among economists and policymakers that the currently relatively low unemployment rate could rise significantly.

“The labor market is going from frozen to cracking,” Heather Long, chief economist at Navy Federal Credit Union, wrote in a commentary. “The United States barely added any jobs in the past four months. This is a white-collar and a blue-collar jobs recession.”

Most sectors of the economy lost jobs in August, with the job gains coming mainly from private education and health care, which added 46,000 jobs, and leisure and hospitality, which added 28,000 jobs.

-Diccon Hyatt

Broadcom Levels to Watch as Stock Soars on Strong Earnings

11 hr 31 min ago

Broadcom (AVGO) shares surged Friday morning after the chipmaker posted quarterly results that topped Wall Street expectations amid booming AI demand.

The company announced late Thursday that it generated $15.95 billion in revenue in its fiscal third quarter, as AI revenue jumped 63% surge to $5.2 billion. CEO Hock Tan said the chip giant expects AI semiconductor revenue could reach $6.2 billion in the current quarter as customers continue to ramp up their AI capacity. Investors also cheered news that the company had secured $10 billion in orders from a new client, which media reports have identified as OpenAI.

Broadcom shares were up 13% in recent premarket trading at $345. Through Thursday’s close, the stock had gained about 32% so far in 2025, slightly outpacing the gains of AI chip rival Nvidia (NVDA).

After setting their record high last month, Broadcom shares have consolidated in a symmetrical triangle, a chart pattern that signals a continuation of the stock’s current uptrend upon a breakout. Indeed, the price looks set to open above the symmetrical triangle’s upper trendline on Friday.

It’s also worth pointing out that the stock traded more that 31 million shares on Thursday, its highest turnover since late June, indicating portfolio positioning ahead of the company’s earnings report.

The measured move technique projects a bullish target of $349. Investors should watch crucial support levels on Broadcom’s chart around $282, $265 and $247.

Read the full technical analysis piece here.

-Timothy Smith

S&P 500, Nasdaq Futures Rise

12 hr 54 min ago

Futures tied to the Dow Jones Industrial Average were down less than 0.1%.

S&P 500 futures rose 0.2%.

Nasdaq 100 futures added 0.5%.