US STOCKS-S&P 500 ends lower after U.S. September jobs miss

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(For a Businesshala Live blog on the US, UK and European stock markets, click live/ or type live/ in a news window.)

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* US jobs growth slowed in September

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* Comcast falls after analyst cuts price target

* Investors turn to upcoming quarterly reports

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* Indices: Dow -0.03%, S&P 500 -0.19%, Nasdaq -0.51% (updates prices after close of trading, adds details)

Oct 8 (Businesshala) – The S&P 500 eased on Friday after showing weaker-than-expected job growth in September, yet investors still expected the Federal Reserve to begin reducing asset purchases this year.

Wall Street’s three main indexes were mixed for most of the session before losing ground towards the end. All three indices posted weekly gains.

Comcast Corp. fell after Wells Fargo cut its price target on the media company, while Charter Communications Inc. fell when Wells Fargo changed that cable operator from “overweight” to “underweight.”

Both companies were one of the biggest drags on the S&P 500 and Nasdaq.

Real estate and utilities were the worst performers among the 11 S&P 500 sector indexes, down 1.1% and 0.7%, respectively.

The S&P 500 energy sector index jumped 3.1%, with oil up more than 4% in the week as the global energy crisis pushed prices to their highest level since 2014.

Chevron and Exxon Mobil rallied more than 2% and were among the companies giving the biggest lift to the S&P 500.

The U.S. economy created the fewest jobs in nine months in September as the Labor Department’s non-farm payrolls report showed that schools were hiring and some businesses lacked workers. The unemployment rate fell from 5.2% to 4.8% in August and average hourly earnings rose 0.6%, higher than expected.

“I think the Federal Reserve has made it very clear that they don’t need the Blockbuster Jobs report in November,” said Kathy Lien, managing director of BK Asset Management in New York. “I think the Fed is on track.”

Futures on the federal funds rate are expected to be subject to a quarter-point tightening by the Federal Reserve by November or December of next year.

The Dow Jones Industrial Average fell 0.03% to end at 34,746.25, while the S&P 500 fell 0.19% to 4,391.35.

The Nasdaq Composite fell 0.51% to 14,579.54.

For the week, the S&P 500 rose 0.8%, the Dow 1.2% and the Nasdaq 0.1%.

The third-quarter reporting season begins next week, with JPMorgan Chase and other big banks being the first to post results. Investors are focusing on global supply chain problems and labor shortages.

According to Refinitiv, analysts expect S&P 500 earnings per share to be about 30% for the quarter.

“I think it’s going to be a dice-earning season,” warned Liz Young, head of investment strategy at SoFi in New York. “If supply-chain issues are driving up costs, a company with strong pricing power can pass through those rising costs. But if you can’t find employees to hire you can’t pass through a labor shortage. “

A decline in the number of issues moving beyond the 1.24-to-1 ratio on the NYSE; On the Nasdaq, a 1.52-to-1 ratio favored the decline.

The S&P 500 posted 26 new 52-week highs and 3 new lows; The Nasdaq Composite posted 86 new highs and 113 new lows.

Volume on US exchanges stood at 9.2 billion shares, compared to an average of 11 billion over the past 20 trading days.

Additional reporting by Devik Jain, Susan Mathew, Bansari Mayur Kamdar and Anisha Sarkar, Editing by Maju Samuel and David Gregorio


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