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

EconomyOct 08, 2021 08:05PM ET
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© 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
 

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Comments (14)
Mark Stallone
Mark Stallone Oct 08, 2021 2:44PM ET
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RELAX. It's all part of Building Back "Better".
Angus Malarkey
Angus Malarkey Oct 08, 2021 2:21PM ET
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"...Fed tapering program..." roflmao
James Pattison
James Pattison Oct 08, 2021 2:05PM ET
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Missing Trump yet?
Clinton Piercy
Clinton Piercy Oct 08, 2021 1:15PM ET
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Eh was anybody really bullish on jobs report? Bet it's mostly priced in.
Dave Jones
Dave Jones Oct 08, 2021 1:10PM ET
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doesn't say job numbers
Mitchel Pioneer
Mitchel Pioneer Oct 08, 2021 1:01PM ET
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Look at the US Ponzi Scheme repeatedly bounce out of the red.  Where were the moves lower during yesterday's manufactured "rally."  Fraudulent, criminally manipulated JOKE.
Thi Tran
Thi Tran Oct 08, 2021 1:01PM ET
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Man!!! I am tired of angry and negative people like you. If you don’t have money to invest, why bother getting on this website?
Toby Fiddler
Toby Fiddler Oct 08, 2021 1:01PM ET
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Mitchel Pioneer needs to shut up, the guy only knows like 5 vocabulary words.
Ricardo Diogo
Rcd72 Oct 08, 2021 11:45AM ET
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inflation is driven by the surreal flooding of funny money
Ricardo Diogo
Rcd72 Oct 08, 2021 11:42AM ET
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FED scam of funny money 💰💸💸is now the driving cause of the economy downfall
Michael Angelo
Michael Angelo Oct 08, 2021 11:42AM ET
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Unemployment, or really employment, report is a fantasy construction. Is gauging people unemployed that still getting the support and looking for jobs. Who will be filling the report if is no getting a dollar from Labor, reason unemployed dropped. Also is not showing which kind of jobs, because are all c*ra*pp*y positions in Amazon, walmart, Mac's.
Bipin Kochar
Bipin Kochar Oct 08, 2021 11:39AM ET
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The energy crisis is China, which produces over 50% of worlds steel and aluminum is severely impacting the output of these key industrial materials - threatening the world recovery
Junk Man
Junk_Man Oct 08, 2021 11:39AM ET
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You're drinking too much kool-aid
Mike Wellons
Mike Wellons Oct 08, 2021 11:39AM ET
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this is true, prices are sky high for materials now
james marshall
james marshall Oct 08, 2021 10:26AM ET
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Final leg of the bubble is getting ready
Ferdinando Riboni
Ferdinando Riboni Oct 08, 2021 9:52AM ET
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funny wall street wants bad news. haha. it's about Free $$$from the Government not the economy...socialism for Wall Street
VietAnh Tran
VietAnh Tran Oct 08, 2021 9:52AM ET
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Rats
ja aa
ja aa Oct 08, 2021 8:42AM ET
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fewer and poorer jobs? up we go. such a farce of an economic system.
ZS Beck
ZS Beck Oct 08, 2021 8:33AM ET
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The job report is a flop, Let see how they put a positive spin on it to talk the market higher.
 
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