Yahoo Finance

Key Takeaways

• The S&P 500 plunged 1.5% on Friday, Jan. 10, as an unexpected surge in hiring in the December jobs report raised concerns about interest rate policy.

• Shares of Constellation Brands tumbled after the beer and wine maker reduced its full-year sales guidance.

• Strong results from Walgreens Boots Alliance suggested early progress on the drugstore operator's turnaround plan, and its shares surged.

Major U.S. equities indexes plunged as the markets returned to action Friday following a day of mourning for former President Jimmy Carter.

The down day for stocks came as the latest jobs report showed that the U.S. economy added 256,000 jobs in December, well ahead of economists' forecasts. The hotter-than-expected labor market data increased uncertainty about the Federal Reserve's flexibility to implement additional interest rate cuts in 2025.

The S&P 500 slid 1.5% on the final day of the trading week. The Dow and the Nasdaq both ended Friday's session down 1.6%.

Constellation Brands (STZ) shares dropped 17.1%, losing the most of any S&P 500 stock after the beer, wine, and spirits maker reported lower-than-expected quarterly sales and slashed its annual forecast. The owner of the Corona and Modelo beer brands noted that inflationary pressure was weighing down spending on alcoholic beverages while shifting preferences for lower-calorie products also affected demand.

Shares of electric utility PG&E (PCG) fell 10.8% as devastating wildfires continue to rage in Southern California. While PG&E is headquartered in Oakland and primarily serves northern and central parts of the state, the power generator declared Chapter 11 bankruptcy in 2019 after being hit with billions of dollars in legal damages related to past fire outbreaks. Shares of Edison International (EIX), which has shut off power to many Los Angeles-area customers around the path of the fire, extended this week's steep losses with a drop of 6.5%.

Truist downgraded shares of power and sensor chipmaker ON Semiconductor (ON) to "hold" from "buy" and lowered its price target on the stock. Onsemi's management team believes the company is poised for a recovery in revenue and margins as it emerges this year from a recent period of demand weakness. However, even after a downturn in the stock, Truist analysts are adopting a cautious outlook until estimates are readjusted. Onsemi shares slipped 7.5%.

Shares of Walgreens Boots Alliance (WBA) skyrocketed 27.6%, notching the top performance in the S&P 500 on Friday. The push higher came after the pharmacy giant reported better-than-expected sales and adjusted profits for the first quarter of fiscal 2025. The company noted that while it remains in the early stages of a turnaround plan that includes closing around 1,200 underperforming locations, it is confident in its initial progress.