The Nasdaq closed lower but the S&P 500 and the Dow eked out late-session gains on Friday as investors turned the page on a roller-coaster week with economic worries, the longest-ever federal government shutdown, and sky-high tech stock valuations dampening risk appetite.
All three major U.S. stock indexes spent much of the session sharply lower, but losses shrank, with the S&P 500 and the Dow turning higher late in the day following reports of progress on the congressional impasse which has resulted in the longest federal government shutdown in U.S. history.
Market Snapshot
The Dow Jones Industrial Average rose 74.80 points, or 0.16%, to 46,987.10, the S&P 500 gained 8.48 points, or 0.13%, to 6,728.80 and the Nasdaq Composite lost 49.45 points, or 0.21%, to 23,004.54. SanDisk Corp. rose 15%, MP Materials Corp. rose 13%, Strategy and Robinhood rose 2%. XPeng Inc. fell 6%.
Market Movers
Tesla fell 3.7% after shareholders approved a pay package for Elon Musk, which could earn the electric-vehicle maker's chief executive more than $1 trillion if Tesla meets all performance incentives. More than 75% of shareholders supported the pay package for Musk, who had threatened to leave if the measure was rejected. However, shareholders gave mixed support to a nonbinding proposal for Tesla to invest in Musk's artificial-intelligence start-up, xAI.
Shares of Expedia surged 18% after the online travel agent boosted fiscal-year guidance for revenue and gross bookings. In the third quarter, Expedia said booked room nights grew 11%, "driven by the fastest U.S. growth in three years and continued international strength, " and total gross bookings rose 12%.
Videogame developer Take-Two Interactive Software fell 8.1% as it announced that Grand Theft Auto VI again would be delayed, this time to Nov. 19, 2026. The game's original release date had been fall 2025 but that was pushed back to May 2026. Take-Two's announcement overshadowed an increase in its fiscal-year sales outlook.
Block, Inc. tumbled 7.7% after the parent of Square and Cash App reported third-quarter adjusted earnings of 54 cents a share, below analysts' estimates of 68 cents, on revenue of $6.11 billion that also came up shy of forecasts.
Affirm, the buy now, pay later platform, rose 12% after posting fiscal first-quarter profit of 24 cents a share, a swing from a year-earlier loss of 31 cents.
Sunrun sank 16%. The residential solar energy provider beat third-quarter revenue estimates but reported weaker-than-expected earnings. Revenue of $725 million jumped 35% from last year and topped Wall Street's expectations, though much of the outperformance was due to the sale of some new customer originations to infrastructure investors.
DraftKings Inc. rose 8.7% after trading lower in the premarket session. The sportsbook reported a third-quarter loss that was wider than expected on revenue that also missed forecasts, and cut its full-year revenue outlook. Guidance, DraftKings said, takes into account the launch of DraftKings Predictions in the coming months.
Opendoor, the online homebuying platform, was flat after posting a wider-than-expected third-quarter loss as sales fell to $915 million from $1.38 billion a year earlier. The company's new CEO, Kaz Nejatian, said in a statement that Opendoor was "refounding" as a software and AI company. "In my first month as CEO, we've made a decisive break from the past -- returning to the office, eliminating reliance on consultants, and launching over a dozen AI-powered products and features that demonstrate our renewed velocity," Nejatian said.
Peloton Interactive rose 7.8% after the at-home fitness company swung to a profit in its fiscal first quarter and forecast revenue of $665 million to $685 million in its current second quarter, versus expectations of $665.2 million.
Constellation Energy rose 2% after the nuclear power company posted weaker-than-expected quarterly earnings and narrowed its full-year guidance.
Nvidia was flat. Shares of the leading maker of artificial-intelligence chips declined 3.7% on Thursday, swept up in wave of selling of Big Tech companies amid worries over high valuations. CEO Jensen Huang, meanwhile, confirmed there were " no active discussions" about the company being able to sell its Blackwell AI chips to Chinese customers, Reuters reported, citing comments made on a visit to Taiwan.
Market News
EV Maker Rivian Gives CEO a Musk-Style Pay Package Worth up to $4.6 Billion
EV maker Rivian Automotive, Inc. on Friday said it was giving its CEO a pay plan worth as much as $4.6 billion over the next decade, a deal similar to Tesla's record package for CEO Elon Musk, and linked to new profit targets and reduced share price milestones.
The move by the Rivian board shows that the Tesla plan for Musk could become a model for companies aiming to grow fast. Rivian's pay package for its CEO RJ Scaringe could be one of the richest in history, depending on what performance goals are met.
Banks Lend $18 Billion for Oracle-Tied Data Center Project, Bloomberg News Reports
A consortium of around 20 banks is providing a project finance loan of about $18 billion to support the construction of a data center campus linked to Oracle in New Mexico, Bloomberg News reported on Friday.
Sumitomo Mitsui Banking Corp, BNP Paribas SA, Goldman Sachs Group, and Mitsubishi UFJ Financial Group are administrative agents on the deal, the report said, citing people with knowledge of the matter.