Stocks rally as Johnson & Johnson plans split into 2 companies
Tesla CEO Elon Musk sells more stock
U.S. stock indexes battled higher Friday, putting inflation concerns in the rearview mirror.
The Dow Jones Industrial Average rose 179 points, or 0.5%, while the S&P 500 index and the Nasdaq Composite index advanced 0.72% and 1%, respectively. The gains came a day after investors digested the hottest inflation reading in 31 years.
|I:DJI||DOW JONES AVERAGES||32460.91||+28.83||+0.09%|
|I:COMP||NASDAQ COMPOSITE INDEX||11677.82652||-91.01||-0.77%|
The report provoked modest selling in U.S. Treasurys, which were closed Thursday for Veterans Day, with the yield on the 10-year note up 3 basis points at 1.58%.
In stocks, Dow component Johnson & Johnson announced plans to split into two companies, separating its consumer health division from its pharmaceuticals unit. The breakup is expected to be completed in 18 to 24 months.
|JNJ||JOHNSON & JOHNSON||152.77||-0.53||-0.35%|
Tesla CEO Elon Musk sold an additional 639,737 shares of company stock, worth $687 million, according to a regulatory filing released Friday. The sale comes days after he sold $5 billion worth of shares.
Lordstown Motors Corp. said commercial production of its Endurance electric pickup truck would be delayed until the third quarter of next year compared to the second quarter due to the global supply chain crunch. The company reported a smaller-than-expected loss in another quarter with no revenue.
Rivian Automotive Inc. shares remain in focus after soaring 58% in their first two days of trading after the company priced its initial public offering at $78 per share. The company finished Thursday’s session with a market capitalization of more than $100 billion, making it about a tenth the size of Tesla.
|RIVN||RIVIAN AUTOMOTIVE INC.||13.11||-0.20||-1.54%|
Alibaba Group Holding Ltd. and JD.com Inc. racked up a record $139 billion in sales on China’s Singles Day shopping event. The event, which used to be just one day, went on for about two weeks.
|BABA||ALIBABA GROUP HOLDING LTD.||97.71||+11.56||+13.42%|
In commodities, West Texas Intermediate crude oil slid 80 cents to $80.79 a barrel while gold ticked up $4.70 to $1,867.90 an ounce.
Overseas markets were mostly higher.
European trading was mixed with Germany’s DAX 30 and France’s CAC 40 climbing 0.07% and 0.45%, respectively, while Britain’s FTSE 100 declined 0.49%.
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In Asia, China’s Shanghai Composite index ticked up 0.18%, Hong Kong’s Hang Seng index added 0.32% and Japan’s Nikkei 225 gained 1.13%.