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

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  • U.S. jobs progress slowed in September
  • Comcast tumbles after analyst cuts worth goal
  • Investors flip to imminent quarterly experiences
  • Indexes: Dow -0.03%, S&P 500 -0.19%, Nasdaq -0.51%

Oct 8 (Reuters) – The S&P 500 ended lower on Friday after data confirmed weaker jobs progress than anticipated in September, nevertheless retailers nonetheless anticipated the Federal Reserve to start out out tapering asset purchases this 12 months.

Wall Street’s three foremost indexes have been combined for plenty of the session earlier than shedding flooring within the course of the tip. All three indexes posted weekly good elements.

Comcast Corp (CMCSA.O) tumbled after Wells Fargo in the reduction of its worth goal on the media company, whereas Charter Communications Inc (CHTR.O) fell after Wells Fargo downgraded that cable operator to “underweight” from “overweight”.

Both firms have been among the many many many largest drags on the S&P 500 and Nasdaq.

Real property (.SPLRCR) and utilities (.SPLRCU) have been the poorest performers amongst 11 S&P 500 sector indexes, down 1.1% and 0.7%, respectively.

The S&P 500 power sector index (.SPNY) jumped 3.1%, with oil up greater than 4% on the week as a world power crunch has boosted costs to their highest since 2014. examine additional

Chevron (CVX.N) and Exxon Mobil (XOM.N) rallied greater than 2% and have been among the many many many firms giving the S&P 500 the easiest elevate.

The Labor Department’s nonfarm payrolls report confirmed the U.S. monetary system in September created the fewest jobs in 9 months as hiring dropped at colleges and a few companies have been wanting workers. The unemployment cost fell to 4.8% from 5.2% in August and customary hourly earnings rose 0.6%, which was greater than anticipated. examine additional

“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 cost priced in a quarter-point tightening by the Federal Reserve by November or December subsequent 12 months. examine additional

The Dow Jones Industrial Average (.DJI) dipped 0.03% to finish at 34,746.25 components, whereas the S&P 500 (.SPX) misplaced 0.19% to 4,391.35.

The Nasdaq Composite (.IXIC) 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 subsequent week, with JPMorgan Chase (JPM.N) and completely completely different large banks among the many many many first to publish outcomes. Investors are targeted on worldwide current chain factors and labor shortages.

Reuters Graphics
Reuters Graphics

Analysts on widespread rely on S&P 500 earnings per share for the quarter to be up virtually 30%, per Refinitiv.

“I think it’s going to be a dicey earnings season,” warned Liz Young, head of funding technique 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 elements 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 three new lows; the Nasdaq Composite recorded 86 new highs and 113 new lows.

Volume on U.S. exchanges was 9.2 billion shares, in distinction with the 11 billion widespread over the previous 20 searching for and selling days.

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

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

Reuters Graphics

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