The three major U.S. indexes notched record closes on Friday, following a pleasant surprise on Jobs Friday. The S&P 500 rose for its seventh consecutive session, matching a winning streak set on Oct. 21. The large-cap index has risen 3.2% amid the run, and it's now up 16 of the past 18 trading days.
Then there’s Nasdaq Composite, which outperformed both the S&P 500 and the Dow Jones Industrial Average this week en route to its best week since April. The tech-heavy index has risen for 10 consecutive trading days, gaining 5.8% along the way.
October’s jobs report fueled Friday’s strong finish. American employers added 531,000 workers to their payrolls during the month. Economists polled by FactSet were expecting nonfarm payrolls of 412,500.
Top Sectors last month:
- S&P 500 Consumer Discretionary Sector +4.99% (ETF: XLY)
- S&P 500 Technology Sector +3.34% (ETF: XLK)
- S&P 500 Materials Sector +3.19% (ETF: XLB)
Interesting News:
- Infrastructure Bill: After months of tortuous negotiations, the House passed a historic $1 trillion infrastructure package intended to improve the nation’s roads, broadband, and other public works, sending it to President Biden’s desk for his signature. the effects of new money for US roads, rail, ports, rural broadband, water supply and the build out of an electric car charging network will start to be felt early next year.
- Semiconductor stocks rally: Shares of smartphone and mobile chip giant Qualcomm (QCOM) were up 23% in the last week, according to data provided by S&P Global Market Intelligence. The company easily surpassed Wall Street analyst expectations, posting revenue of $9.34 billion and adjusted earnings per share of $2.55 -- up a respective 12% and 76% year over year. Shares of other Chipmakers rallied as well during the last week, NVIDIA (NVDA) was up 16.04%, Advanced Micro Devices (AMD) stock grew 14.13%, Micron Technology (MU) finished the week 5.77%, and Semiconductor Giants Intel (INTC) and Taiwan Semiconductor (TSM) both notched up more than 3%.
- Followers urge Elon Musk to sell 10% of Tesla: Voters in a Twitter poll have urged Elon Musk to sell 10% of his stake in Tesla in order to pay tax. More than 3.5 million Twitter users voted in the poll, launched by Mr Musk on Saturday, with nearly 58% voting in favor of the share sale. The vote could see him dispose of nearly $21bn (£16bn) of stock in the electric carmaker. He has promised to abide by the result, in response to a "billionaires tax" proposed by US Democrats. But Mr Musk, one of the world's richest men, has yet to comment publicly on the verdict, or how and when he would sell his stake.
Calendar:
The economic data highlights of the week will be a pair of October inflation measures. The U.S. Bureau of Labor Statistics ¬releases the producer price index on Tuesday, followed by the consumer price index on Wednesday. The full and core versions of both indexes are expected to accelerate from their September readings.
Other data out next week include the National Federation of Independent Business' small business optimism index for October on Tuesday and the University of Michigan's consumer sentiment index for October on Friday.
Earnings This week:
Monday, November 8: US Foods (USFD), Tencent Music (TME), AMC Entertainment (AMC), 3D Systems (DDD), Virgin Galactic (SPCE) and PayPal (PYPL).
Tuesday, November 9: Cardinal Health (CAH), Sysco (SYY), Nio (NIO), Coinbase Global (COIN), Wynn Resorts (WYNN) and ChannelAdvisor (ECOM).
Wednesday, November 10: Performance Food Group (PFGC), Wendy's (WEN), Fiverr International (FVRR), Weber (WEBR), Disney (DIS), Affirm Holdings (AFRM), Opendoor Technologies (OPEN) and Beyond Meat (BYND).
Thursday, November 11: Alibaba (BABA), Li Auto (LI), Coupang (CPNG), Yeti (YETI) and Pinduoduo (PDD).
Friday, November 12: AstraZeneca (AZN) and Spectrum Brands (SPB).
IPO’s This week:
Rivian Automotive (RIVN) (see preview below), CI&T (CINT), Expensify (EXFY) and Third Coast Bancshares (TCBX) are expected to start trading on November 10, while Weave Communications (WEAV) and Backblaze (BLZE) will debut on November 11. It is also round two for Hertz Global Holdings (HTZZ), with the rental car company having a re-IPO under the old ticker HTZ. Hertz plans to offer 37.1M shares at $25 to $29 each. At the midpoint of the indicated range, Hertz would have a fully diluted market value of $13.9B. As part of the offering, Hertz intends to repurchase between $250M to $500M worth of shares from the underwriters. Knighthead Capital and Certares Management will still own about 37% of Hertz after all the smoke clears. The Hertz offering is expected to attract quite a bit of attention following the high-profile agreements with Tesla (TSLA) and Uber Technologies (NYSE:UBER), as well as the meme rally explosion of shares of Avis Budget Group (CAR).
Rivian Automotive IPO preview: The electric vehicle sector will have another stock generating buzz with Rivian Automotive (RIVN) planning to raise $9.7B in its initial public offering by selling 135M shares at $72 to $74 per share. Including stock options and restricted units, the implied valuation for Rivian is over $62B, which is above the market caps of Honda Motors and Ferrari. In the filing, Rivian (RIVN) says its began making customer deliveries of the R1T pickup truck in September and produced 180 R1Ts and delivered 156 R1Ts by the end of October. Most of the deliveries so far have been to Rivian employees, but the company expects to ramp deliveries to third-party customers as the production rate accelerates. Rivian plans to launch and commence customer deliveries for the R1S SUV in December following the completion of ongoing vehicle validation and testing. By the end of the year, the electric vehicle upstart intends to produce approximately 1,200 R1Ts and 25 R1Ss and deliver approximately 1,000 R1Ts and 15 R1Ss. Rivian (RIVN) also highlighted its ecosystem in advance of the IPO, which includes vehicle technology, the Rivian Cloud, product development, analytics, accessories and services. The ecosystem is described as competitive in comparison to peers. Important to the upside case, Rivian (RIVN) estimates its total addressable marker at $9T and its serviceable available market at $1T.
For more watch video in GEO
