Key Takeaways
Major U.S. equities indexes were mixed as markets wrapped up the first week of December.
The employment report released Friday morning showed that the U.S. economy added
more jobs than expected in November
, marking a recovery from major hurricanes and labor disputes that weighed on job creation in October. In addition to demonstrating resilience in the jobs market, the data
bolstered expectations
for another
Federal Reserve interest-rate cut this month
.
The S&P 500 gained 0.3% on Friday, bouncing back from the prior session's decline to notch another closing high. The Nasdaq jumped 0.8%, but the Dow slipped 0.3%.
Lululemon Athletica ( LULU ) shares led the S&P 500 higher on Friday, jumping 15.9% after the maker of yoga pants and other athletic apparel posted better-than-expected quarterly sales and profits. The company said a strong performance in international markets and in Canada helped drive the strong results. Lululemon also boosted its full-year revenue and earnings guidance, striking an optimistic tone heading into the critical holiday shopping season.
Another strong earnings report came from server, data storage, and networking provider Hewlett Packard Enterprise ( HPE ). The IT services firm exceeded top- and bottom-line forecasts on record revenue in the fourth quarter, highlighting artificial intelligence (AI) server demand as a key sales driver. In the wake of the strong quarterly performance, Citi analysts upgraded Hewlett Packard Enterprise stock to "buy" from "neutral" and upped their price target, citing a bright demand outlook for mainstream servers and in the enterprise networking market. HPE shares surged 10.6% on Friday.
Cosmetics retailer Ulta Beauty ( ULTA ) also topped consensus revenue and earnings per share (EPS) estimates with its latest quarterly results , and its shares surged 9%. Although increased competition and soft demand for skin care and makeup have pressured Ulta's performance this year, executives touted progress on solidifying the firm's market position with initiatives including in-store events, digital tools, and new brands. However, Ulta expressed a cautious view on the holiday season, suggesting consumers remain focused on value as they navigate economic uncertainties.
Shares of UnitedHealth Group ( UNH ) tumbled 5.1%, falling the most of any S&P 500 stock on Friday, as the hunt continues for the gunman who fatally shot Brian Thompson , CEO of the company's health insurance unit, earlier this week. The killing has provoked conversations about the complexities of navigating the U.S. health insurance system, including the lack of coverage for certain medical expenses and denial of requests for care. Other health insurance stocks also moved lower.
Quarterly EPS from medical device maker Cooper Companies ( COO ) edged out analysts' forecasts, but soft demand for contact lenses contributed to a slight revenue shortfall, and its shares sank 4.4%.
Oil futures moved lower as analysts pointed to the likelihood of surplus conditions in 2025, with soft demand expected to persist even as major producers extend output cuts. The declining prices pressured oil and gas stocks. Shares of oilfield services provider Halliburton (
HAL
) dropped 4.1%, while shares of exploration and production company Diamondback Energy (
FANG
) fell 3.4%.
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