Symbol	Name	Price		Change	%Change
DJIA	Dow Industrials	18240.49		-28.01	-0.15%
S& P 500	S& P 500 Index	2153.74		-7.03	-0.33%
NASDAQ	NASDAQ Composite	5292.40		-14.45	-0.27%

 

Stocks close below after US jobs report, snap 3-week winning streak

U.S. equities closed lower in choppy trade on Friday as Wall Street digested a weaker-than-expected employment report and kept an eye on falling oil prices.

The Dow Jones industrial average fell 119.15 points at session lows before closing nearly 30 points lower, with Caterpillar and DuPont contributing the most losses.

" I think that, after a number of days in which oil has risen on expectations of an OPEC deal, some investors are beginning to rethink the likelihood of a deal," said Kate Warne, investment strategist at Edward Jones. Days, we' ve seen some intraday volatility, especially in international markets. Given what happened with the pound overnight, I think investors are consolidating some positions.
US crude extended losses around late-morning ET, and settled 63 cents lower at $ 49.81 per barrel. Gold futures traded slightly higher in afternoon ET, before settling lower and recording its worst week since 2013.

" Crude came off gold came off Treasurys came off. I think those reversals in the macro markets certainly spooked investors a little bit," said Jeremy Klein, chief market strategist at FBN Securities, soon after the Dow hit session lows. Fairly thin out there. You' ve got a three-day weekend. The bond guys are off, but we' re not.

The US economy added 156,000 jobs last month and the unemployment rate ticked up to 5.0 percent, the Labor Department said Friday. Economists surveyed by Reuters had expected 176,000 new jobs and the jobless rate to hold at 4.9 percent. The total was a decline from the Upwardly revised 167,000 jobs in August (compared to the original number of 151,000).

Market expectations for a December rate hike were above 60 percent following the report' s release, according to the CME Group' s FedWatch tool.

" We' re convinced, regardless of this number and any number afterwards, the Fed is going to raise rates in December. The Fed is hellbent on getting the funds rate back to 1 percent before the economy rolls over," said Phil Orlando, chief Equity strategist at Federated Investors.

Investors also kept an eye on the British pound, which fell more than 6 percent in two minutes against the dollar overnight, hitting fresh 31-year lows.

Gold futures for December delivery settled $ 1.10 lower at $ 1,251.90 per ounce.

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Symbol	Name	Price		Change	%Change
DJIA	Dow Industrials	18268.50		-12.53	-0.07%
S& P 500	S& P 500 Index	2160.77		1.04	0.05%
NASDAQ	NASDAQ Composite	5306.85		-9.17	-0.17%

 

 

Stocks close mostly flat as US jobs report looms

U.S. stocks closed near the flatline on Thursday as investors seen ahead to a key employment report.

" I think a large part of it is a good jobless claims number, which necessarily gives more weight to tomorrow' s jobs report," said Eric Wiegand, senior portfolio manager at the Private Client Reserve at U.S. Bank.

The Dow Jones industrial average closed about 10 points lower, with Wal-Mart and American Express contributing the most losses. The S & P 500 closed just above the flatline, with materials leading advancers and health care the top decliner. The Nasdaq composite dropped 0.17 percent, As the iShares Nasdaq Biotechnology ETF (IBB) fell more than 2 percent.

The three major indexes had traded further below the flatline earlier in the session, with the Dow falling 118.06 points at session lows.

The Labor Department is scheduled to release its September jobs report on Friday, with economists polled by Reuters expecting the U.S. economy to have added 175,000 jobs and unemployment holding steady at 4.9 percent.
" The market is processing the likelihood of a Fed rate hike. If you look at the yield curve, it' s higher. I think investors looking for yield are reconsidering some of their holdings," said Kim Forrest, senior equity analyst at Fort Pitt Capital.

" We expect jobs growth to continue in health care, tech and finance," said Andrew Chamberlain, chief economist at Glassdoor, adding he expects the US economy to have added 176,000 jobs last month. " The labor market is very strong. This is pretty Unusual heading into an election. " " Such low unemployment numbers are talking some of the most pessimistic talking points off the table. "

The jobs report will come on the back of upbeat U.S. data released Wednesday, including the strongest print on the ISM non-manufacturing index for the year. On Thursday, weekly jobless claims fell to 249,000.

" A weak Jobs Report on Friday would erase any of the positive sentiment gained with yesterday' s strong number," said Jeremy Klein, chief market strategist at FBN Securities.

Investors and traders have been keeping a close eye on economic data as they gauge the likelihood of the U.S. Federal Reserve raising interest rates later this year.

" The jobless claims were pretty good, and that reinforces the case for the Fed to raise interest rates," said Adrian Day, CEO of Adrian Day Asset Management. " I can not see them raising rates in November, but I do think they Will go in December.

Wall Street also kept an eye on oil prices, as U.S. crude rose 1.22 percent to settle at a four-month high of $ 50.44 per barrel, underpinned by bullish inventories data released Wednesday.

Explaining the positive momentum that came into the stock market in late-morning trade, three sources who spoke with CNBC cited an unconfirmed report that European Central Bank Vice President Vitor Constancio refuted reports from earlier this week that the central bank tapering its quantitative easing program. The ECB did not immediately respond to a CNBC request for comment.

Overseas, European equities fell slightly, with the pan-European Stoxx 600 index falling 0.4 percent.

Gold futures for December delivery fell $ 15.60 to settle at $ 1,253 per ounce.

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