Updated 2 min read
US stocks closed mixed on Thursday as Wall Street digested fresh jobs data, with traders increasingly baking in expectations that the Federal Reserve will deliver a December rate cut.
The Dow Jones Industrial Average (^DJI) dropped almost 0.1%, while the S&P 500 (^GSPC) rose 0.1%. The tech-heavy Nasdaq Composite (^IXIC) edged up 0.2%. The moves came on the heels of small closing gains for Wall Street stocks.
Meta (META) led tech higher, with shares up over 3% as a report said CEO Mark Zuckerberg planned to make steep cuts to the company’s metaverse unit. Nvidia (NVDA) also gained, rising over 2%.
Overall, Wall Street is under growing conviction that the Fed will shift toward easing at its policy meeting next week, fueled by support from key officials and a lackluster run of economic data. Traders are pricing in an 89% probability of a rate cut, per CME FedWatch, after a softer-than-expected ADP reading on private employment.
Speculation that Kevin Hassett will replace Jerome Powell as Fed chair is playing into longer-term expectations for lower rates. The White House’s top economic advisor is seen as likely to usher in a more dovish era at the Fed, given his backer President Trump’s aggressive campaign for rapid cuts. But markets are said to be doubtful about Hassett, and bond investors have reportedly voiced concerns to the US Treasury.
Further clues to the state of the labor market came Thursday, with jobless claims unexpectedly falling to a three-year low. But another report found that last month was the worst November for corporate layoffs in three years. On the inflation side, investors will on Friday get the September PCE reading on consumer prices — the Fed’s preferred gauge.
Meanwhile, with earnings season in its final stretch, Salesforce (CRM) shares popped after the business software maker posted a raised outlook that both topped analyst expectations. Snowflake (SNOW) stock tumbled after the AI data cloud provider’s revenue guidance fell short.
LIVE 24 updates
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UiPath stock rockets higher, CFO says environment for enterprise AI spending ‘is different’
UiPath (PATH) shares rocketed over 24% higher during Thursday’s session after reporting strong growth in its latest quarterly results.
UiPath is a software platform that uses artificial intelligence to streamline business operations, from paying bills to addressing healthcare claims. It has partnered with some of the biggest names in AI, including Nvidia (NVDA) and OpenAI (OPAI.PVT).
CFO Ashim Gupta spoke with Yahoo Finance on Thursday to discuss the company’s upbeat fiscal fourth quarter results. He noted that UiPath isn’t seeing a slowdown in enterprise growth but that the environment for AI has changed in recent years.
“I would say the environment is different than five years ago,” Gupta said. “I think five years ago there were innovation funds and there’s different things that are there. What I would say it’s not a question of slow or fast, it’s a question of more discipline and more scrutiny.”
In the third quarter, UiPath posted profits of $0.16 per share, compared to estimates of $0.15, according to S&P Global Market Intelligence. Revenue rose to $411.11 million, beating estimates of $392.9 million.
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Stocks little changed as investor hopes of Fed rate cut grow, Nvidia, Meta rise
US stocks were little changed on Thursday as investors focused on next week’s Fed meeting, anticipating a 25 basis point cut is on the table.
The Dow Jones Industrial Average (^DJI) dropped just below the flatline, while the S&P 500 (^GSPC) closed up 0.1%.
The tech-heavy Nasdaq Composite (^IXIC), rose 0.2%. The gains were led by AI chip heavyweight Nvidia (NVDA) and social media giant Meta (META), which rose 2% and 4% respectively.
Bitcoin’s (BTC=F) prices hovered around the $92,000 threshold on Thursday after rising above $93,000 in the prior session.
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Bitcoin drops below $92,000 as crypto slumps
Bitcoin’s (BTC=F) prices fell back below the $92,000 threshold on Thursday as momentum from the previous session faded.
The world’s largest cryptocurrency is coming off a two-week high after a volatile month, recovering from a low of around $80,000 on November 21.
Bitcoin has struggled to recover following an October crash, during which the token tumbled from an all-time high of over $126,000.
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Nvidia, Meta stocks rise, outperform ‘Mag 7’
Shares of AI chip heavyweight Nvidia (NVDA) and social media giant Meta (META) rose on Thursday, outperforming the rest of the ‘Mag 7’ group.
Nvidia stock rose 2% after CEO Jensen Huang went on the Joe Rogan podcast to talk about the race to develop artificial intelligence.
Meta also jumped 4% after a report from Bloomberg that the parent company of Facebook is planning a sharp pullback from its money-losing metaverse endeavors.
Other ‘Mag 7’ players saw more muted action on Thursday, with Apple (AAPL) down slightly after notching all-time highs earlier this week.
Alphabet (GOOG) (GOOGL) also dipped but remained close to its recent highs.
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Mortgage rates dip back toward year-to-date lows
Yahoo Finance’s Claire Boston reports:
Read more here
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Treasury yields climb after jobs data doesn’t derail Fed rate cut conviction
Treasury yields climbed in midday trading on Thursday after fresh labor market data helped solidify bets that the Federal Reserve will cut interest rates at its meeting next week.
The 10-year bond (^TNX) rose 4 basis points to 4.1%, while the 30-year Treasury yield (^TYX) increased by 3 basis points to 4.75%. The 5-year yield (^FVX) gained 5 basis points, reaching 3.67%.
On Thursday morning, data from the Labor Department showed initial jobless claims unexpectedly fell to their lowest level in three years. Applications for unemployment benefits dropped to 191,000 for the week ending Nov. 29, falling below estimates of 219,000 claims. Continuing claims for the week ending Nov. 22 also pulled back to 1.94 million.
At the same time, a report from outplacement firm Challenger, Gray & Christmas found that employers announced 71,321 layoffs last month. It was the worst November for layoffs since 2022, the firm said.
Adding to the mixed bag of labor market data that investors are parsing was a report from ADP on Wednesday showing private payrolls dropped 32,000 positions in November.
Traders slightly backed off their bets that the Federal Reserve would cut interest rates at its next meeting following this latest batch of labor market data, though markets continue to see a high probability for the central bank to ease rates.
Odds placed by traders of a 25 basis point rate cut stood at 87% on Thursday afternoon, down from 90% odds on Wednesday but up from 83.4% a week ago, according to CMEGroup’s FedWatch.
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Momentum builds behind effort to force stock-trade ban vote as top GOP sponsor blasts ‘the BS’
Yahoo Finance’s Ben Werschkul reports:
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A ‘K-shaped’ economy has investors on edge, but BofA says it may hold up
Yahoo Finance’s Allie Canal reports:
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Big Tech mixed as Meta gains
Meta (META) led Big Tech stocks higher on Thursday morning. The Facebook parent climbed nearly 4% amid a report from Bloomberg that it’s planning a sharp pullback from its money-losing metaverse endeavors.
Nvidia (NVDA), Microsoft (MSFT), and Broadcom (AVGO) saw fractional gains. The three had fallen to varying degrees Wednesday after The Information reported that Microsoft was cutting its sales quotas for its newer AI products, reigniting investors’ doubt over AI demand amid ongoing fears of a market bubble.
Meanwhile, Apple (AAPL), Alphabet (GOOGL), and Amazon (AMZN) shares fell.
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Netflix falls amid report that it’s leading bidder for Warner Bros. Discovery
Netflix (NFLX) shares fell more than 1% Thursday, extending the previous session’s decline as CNBC reported that the streaming giant is the leading bidder for Warner Bros. Discovery (WBD), ahead of Paramount Skydance (PSKY) and Comcast (CMCSA).
Netflix is only interested in WBD’s studios and HBO Max Streaming Services, per Bloomberg.
The company argued Wednesday that bundling its own offerings with HBO would help lower costs for consumers in a report from Reuters, attempting to preempt regulatory concerns over the potential acquisition. The report had the opposite effect, however, and sent the stock down 5% during yesterday’s trading session.
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Stocks inch higher at the open
US stocks nudged higher at the market open on Thursday as labor market data helped further cement bets for a December rate cut.
The Dow Jones Industrial Average (^DJI) and the S&P 500 (^GSPC) added around 0.2%. The tech-heavy Nasdaq Composite (^IXIC) hovered above the flat line.
The moves come on the heels of modest gains for stocks on Wednesday.
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Meta stock jumps on reports that Zuckerberg plans to slash metaverse budget
Meta (META) stock jumped by over 5% after the opening bell on Thursday after Bloomberg reported that CEO Mark Zuckerberg is planning to cut up to 30% of its budget for metaverse efforts.
The proposed budget cuts, being discussed as part of the company’s annual budget planning, would likely include layoffs and affect its virtual reality game, Meta Horizon Worlds, and its Quest VR headset, according to people familiar with the matter.
Zuckerberg pivoted the social media company to focus on the metaverse in 2021 as the company faced criticism over its content moderation and privacy practices, even renaming the company to reflect its bet on the technology.
But many on Wall Street weren’t keen on the move — or the billions of dollars Meta diverted toward the effort.
Still, Meta has shown it’s still making a push to become a hardware company, diversifying beyond its apps. On Wednesday, reports surfaced that Meta poached Apple’s head of user interface design, Alan Dye, signaling its focus on AI-enabled consumer devices.
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Kroger stock slides as grocery competition mounts, growth slows
Kroger (KR) stock fell about 3% in premarket trading after the food retailer reported little revenue growth year over year.
The Cincinnati-based grocery chain posted adjusted earnings per share of $1.05, slightly beating Wall Street analysts’ expectations of $1.03 earnings per share, according to S&P Global Market Intelligence.
However, third quarter revenue of $33.9 billion was roughly unchanged from the same period a year ago, $33.6 billion, and missed analyst estimates of $34.1 billion. Same-store sales, excluding fuel, grew 2.6% year over year.
Kroger expects same-store sales ex-fuel to grow 2.8%-3.0%, narrower than its previous range of 2.7%-3.4%. The company also raised the lower end of its EPS guidance to $4.75-$4.80 from $4.70-$4.80 previously.
In a Nov. 25 note, JPMorgan analysts noted that the consumer and competitive environment has grown notably tougher for food retailers.
“Sentiment toward food retailers seems to have soured a bit over the past few months, including for [Kroger],” the analysts wrote. “When inflationary concerns were more persistent in the food space and the consumer environment was stronger, the food retail space was better liked.”
The analysts noted a few factors putting pressure on Kroger shares, in particular, in recent months: Amazon’s (AMZN) push into grocery, Walmart (WMT) taking share in grocery and ramping up price competition, concerns about food inflation reigniting, and Nielsen data showing slower sales growth.
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Bitcoin heads into 2026 with renewed acceptance — and volatility
Yahoo Finance’s Hamza Shaban writes:
Read more here in the takeaway from today’s Morning Brief.
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Good morning. Here’s what’s happening today.
Economic data: Challenger job cuts (November); Initial jobless claims (week ended Nov. 29); Continuing claims (week ended Nov. 22)
Earnings: Toronto-Dominion Bank (TD), Bank of Montreal (BMO), Kroger (KR), Hewlett Packard Enterprise (HPE), Ulta Beauty (ULTA), Dollar General (DG), Samsara (IOT), The Cooper Companies (COO), DocuSign (DOCU), Brown-Forman Corporation (BF-A, BF-B), Rubrik (RBRK)
Here are some of the biggest stories you may have missed overnight and early this morning:
Companies make 71,000 layoffs in worst November since 2022
‘K-shaped’ economy has Wall Street on edge. Why it may be OK.
Bitcoin heads into 2026 with renewed acceptance — and volatility
Trump meets Nvidia’s CEO to talk AI chip curbs: Source
Market doubts Hassett can deliver at Fed: Top fund manager
Silver retreats from record high as traders lock in profits
Goldman: Copper’s ‘breakout’ above $11,000 won’t last
Alphabet’s AI chips are a potential $900B ‘secret sauce’
Meta hit by EU antitrust probe into AI use in WhatsApp
Wall Street shifts AI narrative from ‘bubble’ to ‘air pocket’
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Companies announced more than 71,000 layoffs last month in worst November since 2022: Challenger
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Not a ‘bubble,’ but maybe an ‘air pocket’: Wall Street says it’s time to reset the AI narrative
Yahoo Finance’s Allie Canal reports:
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Premarket trending tickers: UiPath, Hormel Foods and Paypal
UiPath (PATH) stock rose 9% during premarket hours on Thursday after the software company reported a quarterly profit in its third quarter earnings.
Hormel Foods (HRL) stock rose 6% before the bell on Thursday after reporting higher sales in its fourth quarter. The company swung to a loss as profits remained under pressure amid ongoing inflation.
PayPal (PYPL) stock fell more than 1% in premarket trading after the company said it expects growth in its key branded checkout service to slow in the fourth quarter.
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Salesforce stock climbs after earnings beat, boost to annual revenue forecast
Salesforce (CRM) stock took a leg higher in premarket on the company’s third quarter earnings beat and improved outlook.
The software giant reported third quarter diluted earnings per share of $3.25, beating estimates of $2.58 per share, according to S&P Global Market Intelligence.
Revenue of $10.27 billion rose 8.6% year over year and was roughly in line with estimates.
Reuters reports:
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Five Below stock pops after earnings beat as shoppers flock to low-cost retailers
Five Below (FIVE) shares rose early on Thursday as it became the latest value retailer to benefit from consumers’ shift toward more value-oriented purchases, as high-income shoppers drive traffic at dollar stores and other bargain outlets.
“We’ve seen really nice traffic growth and growth in both new customers as well as retention,” Five Below CEO Winnie Park said on the company’s earnings call. “What’s really worked in terms of growth is an expansion of the idea of what value looks like. We still curate a great assortment — roughly 80% of the assortment is $5 and below — but we took a lot of attention to those items above $5 and specifically packing a ton of value at $7, $10, $15.”
Net sales increased 23.1% year over year to $1 billion in the third quarter, surpassing estimates of $983 million, per S&P Global Market Intelligence. Same-store sales rose by 12.4% year over year.
Earnings per share reached $0.66, beating estimates for $0.26 per share, sending the stock 4% higher in after-hours trading.
Five Below also raised its full-year sales outlook to a range of $4.62 billion to $4.65 billion. The company also raised its forecast for diluted income per share to a range of $5.51 to $5.69 from $4.56 to $4.96 previously.
For the fourth quarter, net sales are expected to be in the range of $1.58 billion to $1.61 billion.
