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

  • 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 knowledge confirmed weaker jobs progress than anticipated in September, but traders nonetheless anticipated the Federal Reserve to start tapering asset purchases this 12 months.

Wall Street’s three major indexes have been combined for a lot of the session earlier than shedding floor towards the tip. All three indexes posted weekly good points.

Comcast Corp (CMCSA.O) tumbled after Wells Fargo reduce its worth goal on the media firm, 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 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. learn extra

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

The Labor Department’s nonfarm payrolls report confirmed the U.S. economic system in September created the fewest jobs in 9 months as hiring dropped at faculties and a few companies have been wanting employees. The unemployment fee fell to 4.8% from 5.2% in August and common hourly earnings rose 0.6%, which was greater than anticipated. learn extra

“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 fee priced in a quarter-point tightening by the Federal Reserve by November or December subsequent 12 months. learn extra

The Dow Jones Industrial Average (.DJI) dipped 0.03% to finish at 34,746.25 factors, 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 different large banks among the many first to publish outcomes. Investors are targeted on international provide chain issues and labor shortages.

Reuters Graphics

Analysts on common count on S&P 500 earnings per share for the quarter to be up nearly 30%, in keeping with 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 points 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 contrast with the 11 billion common during the last 20 buying 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

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