Stock S&P 500 ends lower after U.S. September jobs miss

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

-

Economy13 minutes ago (Oct 08, 2021 08:05PM ET)

(C) Reuters. A specialist trader works inside a booth on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 6, 2021. REUTERS/Brendan McDermid

By Noel Randewich and Devik Jain

(Reuters) – The S&P 500 ended lower on Friday after data showed weaker jobs growth than expected in September, yet investors still expected the Federal Reserve to begin tapering asset purchases this year.

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

Comcast Corp (NASDAQ:CMCSA) tumbled after Wells Fargo (NYSE:WFC) cut its price target on the media company, while Charter Communications Inc (NASDAQ:CHTR) fell after Wells Fargo downgraded that cable operator to “underweight” from “overweight”.

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

Real estate and utilities were the poorest performers among 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% on the week as a global energy crunch has boosted prices to their highest since 2014.

Chevron (NYSE:CVX) and Exxon Mobil (NYSE:XOM) rallied more than 2% and were among the companies giving the S&P 500 the greatest lift.

The Labor Department’s nonfarm payrolls report showed the U.S. economy in September created the fewest jobs in nine months as hiring dropped at schools and some businesses were short of workers. The unemployment rate fell to 4.8% from 5.2% in August and average hourly earnings rose 0.6%, which was more than expected.

“I think that the Federal Reserve made it very clear that they don’t need a blockbuster jobs report to taper in November,” said Kathy Lien, Managing Director at BK Asset Management in New York. “I think the Fed remains on track.”

Futures on the federal funds rate priced in a quarter-point tightening by the Federal Reserve by November or December next year.

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

The Nasdaq Composite dropped 0.51% to 14,579.54.

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

Third-quarter reporting season kicks off next week, with JPMorgan Chase (NYSE:JPM) and other big banks among the first to post results. Investors are focused on global supply chain problems and labor shortages.

Analysts see Q3 U.S. earnings growth of 30%: https://graphics.reuters.com/USA-RESULTS/OUTLOOK/zjpqkekqxpx/chart.png

Analysts on average expect S&P 500 earnings per share for the quarter to be up almost 30%, according to Refinitiv.

“I think it’s going to be a dicey earnings 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 you can’t pass through a labor shortage if you can’t find workers to hire.”

Declining issues outnumbered advancing ones on the NYSE by a 1.24-to-1 ratio; on Nasdaq, a 1.52-to-1 ratio favored decliners.

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

Volume on U.S. exchanges was 9.2 billion shares, compared with the 11 billion average over the last 20 trading days.

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

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Latest news

ASEAN excludes Myanmar junta leader from summit in rare move

World27 minutes ago (Oct 16, 2021 07:50AM ET) 2/2 (C) Reuters. FILE PHOTO: Flags are seen outside the Association of Southeast...

Biden to attend memorial service honoring U.S. law enforcement officers

World8 minutes ago (Oct 16, 2021 07:10AM ET) (C) Reuters. FILE PHOTO: U.S. President Joe Biden and first lady Dr....

Russia seeing record gas demand but still ready to boost EU supplies, Novak says

Commodities23 minutes ago (Oct 16, 2021 06:56AM ET) (C) Reuters. FILE PHOTO: Flames from a gas burner are reflected on...

Attackers Behind Trickbot Expanding Malware Distribution Channels

The operators behind the pernicious TrickBot malware have resurfaced with new tricks that aim to increase its foothold by...

Subscribe here

UK PM Johnson visits church where lawmaker was stabbed to death

World15 minutes ago (Oct 16, 2021 06:03AM ET) 5/5 (C) Reuters. Britain's Labour Party leader Keir Starmer, Prime Minister Boris Johnson...

NASA launches first space probe to study Jupiter’s Trojan asteroids

Stock Markets17 minutes ago (Oct 16, 2021 06:01AM ET) 5/5 (C) Reuters. The capsule with NASA's Lucy spacecraft, atop a United...

You might also likeRELATED
Recommended to you