U.S. stock futures rose Friday, helped by premarket strength in Dow Jones component Johnson & Johnson on plans to split into two companies. The Nasdaq and the S&P 500 rebounded Thursday. But the Dow Jones Industrial Average fell for a third straight session, pulled down by Disney’s 7% decline on disappointing quarterly results. Dow stock Disney was modestly higher in Friday’s premarket.
Dow Jones Set to Bounce
The U.S. bond market opened back up Friday after the Veterans Day holiday, with the 10-year Treasury yield flat, following this week’s gains after hot inflation data. The government is out with its Job Openings and Labor Turnover Survey at 10 a.m. ET. JOLTS in September is expected to show employment vacancies dropping to 10.2 million after the prior month’s 10.4 million, fueled by record quits.
J&J shares rose roughly 3% in the premarket after the health-care giant announced Friday it’s splitting into two publicly traded companies: one focused on consumer products, such as Band-Aid bandages and baby powder, and the other focused on medical devices and pharmaceuticals, including its Covid vaccine.
Shares of Rivian Automotive rose nearly 4% in Friday’s premarket, a move that would add to the newly public electric vehicle maker’s two-day gain of 57%. Since Wednesday’s debut, Rivian’s market value has climbed to $105 billion and CEO R.J. Scaringe’s stake in the company he founded in 2009 was valued at $2.2 billion.
Rivian, which has Amazon and Ford as backers, pales in comparison to Tesla’s more than $1 trillion market value. Elon Musk, worth more than $275 billion, took a shot at his rival Thursday, saying high production and break-even cash flow will be the true test for Rivian.
Alibaba and JD.com racked up around $139 billion of sales across their platforms on China’s Singles Day shopping event, setting a record. Singles Day was slightly more muted this year as Chinese tech companies continued to face scrutiny from regulators and Chinese President Xi Jinping’s push for so-called common prosperity.
Xi took another step to solidify his hold on China, the world’s second-largest economy, and to advance his vision for a strong Chinese Communist Party-dominated system. On Thursday, he joined the ranks of Mao Zedong and Deng Xiaoping as the country’s third leader to oversee a “historical resolution” at the close of the widely watched meeting of the CCP.