S&P 500 Ends Down After Losing US Jobs In September

Synopsis

The S&P 500 closed lower on Friday after September data showed weaker-than-expected job growth, but investors still expected the Federal Reserve to begin cutting bond purchases this year. The top three Wall Street indices were mixed for much of the session before losing ground towards the end. All three indices posted weekly gains.

The S&P 500 closed lower on Friday after September data showed weaker-than-expected job growth, but investors still expected the Federal Reserve to begin cutting bond purchases this year.

The top three Wall Street indices were mixed for much of the session before losing ground towards the end. All three indices posted weekly gains.

Comcast Corp tumbled after Wells Fargo reduce its fee goal at the media company, whilst Charter Communications Inc fell after Wells Fargo downgraded that cable operator to “underweight” from “overweight”.

Both businesses had been amongst the largest drags at the S&P 500 and Nasdaq.

Real property and utilities had been the poorest performers amongst eleven S&P 500 quarter indexes, down 1.1% and 0.7%, respectively. The S&P 500 Energy Sector Index rose 3.1%, and oil prices rose more than 4% during the week, as a global energy crisis pushed prices to their highest level since 2014.

Chevron and Exxon Mobil they rose more than 2% and were among the companies that gave the S&P 500 the largest increase.

The Labour Department’s Non-Farm Wage and Wage Report showed that the United States economy  created the fewest jobs in nine months in September as school recruitment declined and some businesses faced labour shortages . The unemployment rate fell to 4.8% from 5.2% in August and the average hourly wage 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.”

Federal Funds Rate futures are trading a quarter of a set point by the Federal Reserve through November or December of next year.

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

The Nasdaq Composite lost 0.51% to 14,579.54.

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

The third-quarter reporting season begins next week, with JPMorgan Chase and other major banks among the first to publish results. Investors are focusing on global supply chain problems and labour shortages. According to Refinitiv, analysts expect  earnings per share for the S&P 500 to increase nearly 30% on average for the quarter.

“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 labour shortage if you can’t find workers to hire.”

Declining issues outpaced rising issues on the NYSE 1.24 to 1; on the Nasdaq it favoured a  ratio of 1.52 to 1 relegated.

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

The volume on the US stock exchanges was 9.2 billion shares, compared to the average of 11 billion in the last 20 trading days.

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