Lululemon Stock Plunges; Broadcom Charges Higher

Major U.S. equities indexes lost ground Friday after the Bureau of Labor Statistics released its latest employment report.

The data showed the U.S. added fewer-than-expected jobs in August, and a downward revision to earlier estimates revealed the economy shed jobs in June, the first month of losses since 2020.

The S&P 500 slid 0.3% on the final day of the holiday-shortened trading week. The Dow was down 0.5%, while the tech-heavy Nasdaq ended the session with a fractional loss of less than 0.1%.

Lululemon Athletica (LULU) shares fell the most of any stock in the S&P 500 on Friday, plummeting 18.6%. The maker of athletic apparel posted softer-than-expected same-store sales growth for its fiscal second quarter and trimmed its full-year revenue guidance, pointing to tariff impacts and sluggish U.S. sales. Jefferies analysts suggested Lululemon could face even tougher conditions ahead, citing competitive pressures and doubts about the company’s pipeline of new designs.

Shares of Kenvue (KVUE) dropped 9.4% after The Wall Street Journal reported the Department of Health and Human Services, under the leadership of Robert F. Kennedy, Jr., plans to release a report suggesting a link between autism and pregnant women’s use of Tylenol. The popular over-the-counter painkiller is made by Kenvue subsidiary McNeil Consumer Healthcare. A Kenvue spokesperson on Friday contested the claims allegedly made by the report.

Advanced Micro Devices (AMD) shares tumbled 6.6% after Seaport Research downgraded the chipmaker’s stock to “hold” from “buy.” Analysts pointed to signs of slowing demand for AMD’s artificial intelligence accelerators, and noted it could become difficult for the company to meet lofty expectations.

Broadcom (AVGO) shares surged 9.4%, logging the top performance in the S&P 500, after the chipmaker reported better-than-expected sales and adjusted profit for its fiscal third quarter. Demand for AI semiconductors boosted Broadcom’s performance, with AI revenue rising 63% year-over-year. The company also said it had secured $10 billion in orders from a new customer, which reports later suggested was OpenAI.

Shares of pool equipment supplier Pool Corp. (POOL) advanced 5.5% after Friday’s weak jobs report cemented the case for an interest rate cut at the Federal Reserve’s policy meeting later this month. Expectations of a rate cut caused the 10-year Treasury yield, which influences mortgage rates, to sink to its lowest level since April. Elevated mortgage rates have kept the U.S. housing market in a deep freeze for the last three years, which has dragged on the businesses of homebuilders and home goods producers like Pool.

Tesla (TSLA) proposed a new compensation plan for CEO Elon Musk that could be worth roughly $1 trillion. Reaching that amount would require the electric vehicle maker’s CEO and world’s richest person to achieve certain performance targets, including helping Tesla reach a market cap of $8.5 trillion and a total of 20 million vehicle deliveries. Negotiations around Musk’s compensation have grown contentious in the past, and shareholders are set to vote on the proposed package on Nov. 6. Tesla stock added 3.7% Friday.