Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

S&P 500 Falls as Weaker Jobs Data Spooks Investors

Stock MarketsAug 04, 2021 04:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 fell Thursday on signs of weakness in the labor market market that spooked investors at a time when the Federal Reserve continues to signal that easy monetary policy measures will soon come to an end.   

The S&P 500 fell 0.5%, the NASDAQ Composite was up 0.1%, and the Dow Jones Industrial Average slipped 0.9%, or 323 points.

There appears more reason to be concerned in the labor market as private payrolls fell well short of expectations. ADP reported that private-sector employment rose by 330,000 in July, less than half the 690,000 rise expected.

The jobs front has come under added scrutiny in recently, as the Federal Reserve said the job gains still have a way to go to reach pre-pandemic levels, but will eventually hit the central bank's maximum employment target, paving the way for a lift off in rates. 

 “Given this outlook and so long as inflation expectations remain well anchored at the 2% longer-run goal … commencing policy normalization in 2023 would, under these conditions, be entirely consistent with our new flexible average inflation targeting framework,” Clarida told the Peterson Institute for International Economics in a virtual appearance, according to CNBC.

The weaker-than-expected jobs data came just days ahead of nonfarm payrolls data due Friday, and weighed on cyclical stocks including energy and industrials.

Energy was the worst performing sector, down more than 2% following a slip in oil prices as data showed weekly U.S. crude inventories unexpectedly increased last week.

Stockpiles increased 3.6 million barrels during the week ended July 30, confounding expectations for a draw of 3.1-million barrels.

A wave of mostly underwhelming quarterly results, meanwhile, added to pressure on stocks as Kraft Heinz and General Motors Company (NYSE:GM) slumped.

Kraft Heinz Co (NASDAQ:KHC)reported better-than-expected second-quarter results, though sales slipped year-on-year. Its share price fell 5%.

General Motors reported mixed quarterly results as earnings missed, but revenue beat expectations. The automaker raised guidance that fell short of Wall Street estimates, sending its shares 9% lower.

The jump in cases brought on by the delta variant of coronavirus has also prompted some investor caution as some companies return toward implanting restrictions from last year.

“Some companies such as Target (NYSE:TGT) are adopting a mask mandate for employees, and others including Tyson Foods (NYSE:TSN), Microsoft (NASDAQ:MSFT) and The Walt Disney Company (NYSE:DIS) are implementing vaccine requirements. NYC, meanwhile, will now require proof of vaccination for entry into restaurants, gyms and leisure events, such as movie theaters,” Stifel said in a note.

In other news, Robinhood Markets Inc (NASDAQ:HOOD) jumped 48% as that trading of its options got underway for the first time.

S&P 500 Falls as Weaker Jobs Data Spooks Investors
 

Related Articles

Uber: No Sign of Upside Yet
Uber: No Sign of Upside Yet By TipRanks - Sep 19, 2021

Uber Technologies (NYSE:UBER) develops platforms that allow for independent ride-sharing and food deliveries. I am bearish on the stock. (See Uber stock charts on TipRanks) C-Suite...

CVS: Efficiency could Bolster Dividend Payouts
CVS: Efficiency could Bolster Dividend Payouts By TipRanks - Sep 19, 2021

CVS Health Corporation (NYSE:CVS) is a U.S.-based pharmacy chain with offerings throughout the entire health care spectrum. CVS stock is heavily backed by Michael Burry and has...

Energy Transfer: Looking Lively for Investors
Energy Transfer: Looking Lively for Investors By TipRanks - Sep 19, 2021

I am bullish on Energy Transfer (NYSE:ET), as its excessively cheap valuation and attractive distribution make it appear to be a very attractive place to invest right now. Energy...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (7)
Kaveh Sun
Kaveh Sun Aug 04, 2021 9:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Weak is good because Fed keeps printing. The moment the Fed stops supporting this market will collapse. Biden wont like to have a collapse under his watch.
Alif Fajar
Alif Fajar Aug 04, 2021 9:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
like it or not it will happen anywaypeople always think they can control something far bigger than themselves but it ussualy end up in dissasteroh well prepare the cash for the inevitable
Kelly Mayer
Kelly Mayer Aug 04, 2021 8:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Look people, there are only 2 reasons the market is headed to a dark place this fall. Either it is intentional or they have lost control entirely, but will deny it until the end.
John Walker
BURT Aug 04, 2021 6:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So many commenters are falling for this narrative. I was here when a poor jobs report was bullish because more unemplpyment and stimulus.
Alberto Vazquez
Alberto Vazquez Aug 04, 2021 5:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Get rid of the leftist comunist go back to normal. They are virus.
Bill Ackman
Bill Ackman Aug 04, 2021 5:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And right wing terrorists also
Bill Ackman
Bill Ackman Aug 04, 2021 5:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
“Talk” of tapering and interest rates hiking having no impact on Overvalued risky stocks which should tumble because only they get it the “talk” are “lies”…While commodities,currencies etc they keep believing it
Mark Manley
Mark Manley Aug 04, 2021 4:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The jobs are there, everywhere you look employers are hiring, many are paying sign-on bonuses, the reason the jobs numbers are bad is because the federal government continues to pay people not to work, if Biden and his cronies would knock that off, we could get back to business
David Fong
David Fong Aug 04, 2021 4:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And dont forget, they dont pay taxes on the $$ they receive.
Bill Ackman
Bill Ackman Aug 04, 2021 4:55PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And eviction moratorium is extended until oct 3 now so another 2 months rent freeeeee
Ron Love
Ron Love Aug 04, 2021 4:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why doesnt weaker jobs data soften inflation panic about an economy “running too hot”? 🤔
Meru Pet
Meru Pet Aug 04, 2021 4:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
bear narrative has to be bearish
Bill Ackman
Bill Ackman Aug 04, 2021 4:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Because its 2021 and in 2021 you are paid extra $300 weekly on top of state unemployment even if you arent working…So work or no work it doesnt make difference to your pay check
Ron Love
Ron Love Aug 04, 2021 4:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bill Ackman Okay, so again why would “weaker jobs data” matter to the economy? Uncle Sam’s dollars can be spent in the economy just as easily as an employers dollars can be.
Bill Ackman
Bill Ackman Aug 04, 2021 4:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ron Love why are you changing your question ?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email