Stock market slammed for 2nd straight day

Traders
signal offers in the Dow Jones Industrial Average stock index
futures pit on the CME Group trading floor October 14, 2009 in
Chicago, Illinois.
Scott
Olson/Getty

• US equity markets were under pressure Friday after a solid
  jobs report pushed the unemployment rate down to 3.7%, its lowest
  since 1969.
• Traders continue to watch the bond market closely, as the
  10-year hit 3.24%, its highest since 2011.
• Tesla
  shares were hit hard after Elon Musk took a swipe at the
  Securities and Exchange Commission on Twitter and hedge fund
  billionaire David Einhorn compared the company to the failed US
  bank Lehman Brothers.  

US equity markets were hit hard for a second straight day Friday,
with all of the major averages sporting losses of at least 1% at
their lows. Heavy selling pushed the tech-heavy Nasdaq down by as
much as 2.1%. 

Friday’s weakness comes after the Bureau of Labor Statistics said

the unemployment rate in the US fell to 3.7% in September,
the lowest since 1969. Nonfarm payrolls rose by 134,000, fewer
than expected and slowed in part by the wrath of Hurricane
Florence. Almost 300,000 workers, most likely in industries
like hospitality in which they’re paid only if they show up, said
the storm kept them away from their jobs. 

The solid jobs report sent long-dated US Treasury yields to their
highest level in over seven years, with the benchmark 10-year up
more than 5 basis points to 3.24%. The recent strength in
economic data has traders grappling with the possibility that the
Federal Reserve could raise interest rates more quickly than
expected. Those rate hikes would make it more expensive for
companies to borrow money, and potentially choke off economic
growth sooner than anticipated.

Heavy selling battered tech stocks for the second day in a row.
This time the electric-car maker Tesla was in the crosshairs,
down more than 7%, after CEO Elon Musk took a swipe at the
Securities and Exchange Commission on Twitter.

“Just want to that the Short-seller Enrichment Commission is
doing incredible work,” Musk
tweeted Thursday evening. “And the name change is so on
point!”

Tesla shares were also pressured by hedge fund billionaire
David Einhorn appearing on CNBC and
comparing the company to the failed US bank Lehman
Brothers. Apple fell about 2% after Einhorn said he was
selling shares in fear
China would retaliate against America’s trade
policies. 

Elsewhere, Netflix sank more than 4% and is now more than
15% below its record high of $423.20 that was set in
June. 

On the upside, General Electric popped after laying out the

contract details for Larry Culp, its new CEO. Culp will
receive an annual salary of $2.5 million and have the potential
to earn another $300 million if GE’s stock price rises by 75%
over the next four years, according to CNBC. He has the chance to
earn $3.75 million in annual bonuses. 

Looking ahead to next week,
earnings season kicks off with Walgreens Boot Alliance
reporting on Thursday and JPMorgan, Citigroup, and Wells Fargo
all releasing their quarterly results on Friday. 

Markets
Insider