Wall Street dips after September jobs miss

- Advertisement -

- Advertisement -

  • US job growth slows in September
  • Investors turn to upcoming quarterly report
  • Indexes: Dow -0.03%, S&P 500 -0.13%, Nasdaq -0.38%
- Advertisement -

October 8 (Businesshala) – US stocks fell on Friday as job growth in September was weaker than expected, yet investors still hoped the Federal Reserve would start buying assets this year.

Comcast Corp (CMCSA.O) fell 4.3% after Wells Fargo cut its price target on the media company. This put pressure on the S&P 500 and Nasdaq, which moved into negative territory. Charter Communications Inc. (CHTR.O) fell 4.5% after Well Fargo downgraded that cable operator from “overweight” to “underweight.”

Most of the 11 major S&P sectors fell, with real estate (.SPLRCR) and materials (.SPLRCM) each falling about 0.6%.

The S&P 500 Energy Sector Index (.SPNY) jumped 2.3%, with oil up more than 4% in the week as the global energy crisis pushed prices to their highest level since 2014.

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 a Blockbuster Jobs report in November,” said Kathy Lien, managing director of BK Asset Management in New York. “I think the Fed remains 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 (.DJI) was down 0.03% at 34,743 points in afternoon trade, while the S&P 500 (.SPX) was down 0.13% at 4,393.92.

The Nasdaq Composite (.IXIC) was down 0.38% at 14,598.71.

The third quarter reporting season begins next week, with JPMorgan Chase (JPM.N) and other large 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 on those rising costs. But you can’t pass through a labor shortage if you can’t find workers to hire.” “

reducing issues moving forward by a 1.30-to-1 ratio on the NYSE; On the Nasdaq, a 1.49-to-1 ratio favored the decline.

The S&P 500 posted 24 new 52-week highs and 3 new lows; The Nasdaq Composite posted 75 new highs and 95 new lows.

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


- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox