Friday's Pre-Market: Potential Interest Rate Cuts, Rivian Automotive, House voting for TikTok divesture, Costco's earnings, and upcoming jobs report

Powell says the Fed is ‘not far’ from the point of cutting interest rates

• Fed Chair Jerome Powell said inflation is “not far” from where it needs to be for the central bank to start cutting interest rates.

• “I think we’re in the right place,” Powell said of the current policy stance.

Rivian shares surge as company reveals new EV models, $2.25 billion in cost savings

• Rivian Automotive unveiled three new vehicles and announced more than $2 billion in savings related to pausing construction on a plant in Georgia.

• The R2 is expected to start at about $45,000 when it goes on sale during the first half of 2026. The company also announced the R3 and R3X crossovers.

• The announcements come at a crucial time for Rivian as it attempts to expand its customer base amid slower-than-expected EV sales in the U.S.

House committee unanimously supports forcing TikTok divestiture

• A House panel voted 50-0 to approve a bill that could lead to TikTok being banned in the U.S.

• Lawmakers say the bill is not a ban, arguing that it is a national security measure targeted at TikTok’s Chinese parent ByteDance.

• Capitol Hill was inundated with calls from kids and teens Thursday, after TikTok urged its users to call lawmakers and express their opposition to a ban.

Costco misses holiday-quarter revenue expectations despite online growth

• Costco on Thursday missed Wall Street’s revenue expectations for its holiday quarter, despite reporting year-over-year sales growth.

• More shoppers came to Costco, and they spent more on their shopping trips during the quarter.

• E-commerce sales grew 18.4% in the quarter compared with the year earlier.

Jobs report Friday is expected to show a slowing but still healthy labor market

• Friday’s nonfarm payrolls report is expected to show growth of 198,000 and the unemployment rate holding steady at 3.7%.

• A jobs market that remains red-hot could deter the Federal Reserve from cutting interest rates this year as expected.

• In its most recent survey of economic conditions, the Fed found that the ultra-tight labor market has loosened somewhat, but there are still active pockets.