Stocks slip after big jobs miss, oil hits $80 level
US economy added 194K jobs in September
Investors should focus on stocks that perform well regardless of what the Fed does: Trainer
The Cow Guy Group's Scott Shellady and New Constructs CEO David Trainer provide insight into the September jobs report.
U.S. stock indexes fell Friday after the September jobs data fell short of estimates and after the Senate passed a short-term increase to the debt limit.
The Dow Jones Industrial Average lost 8 points, or 0.02%, while the S&P 500 index and the Nasdaq Composite index declined 0.19% and 0.51%, respectively.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 38314.86 | -2,231.07 | -5.50% |
| SP500 | S&P 500 | 5074.08 | -322.44 | -5.97% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15587.786263 | -962.82 | -5.82% |
For the week all three of the major averages posted gains with Dow gaining over 1%.
Nonfarm payrolls increased by 194,000 workers in September as the unemployment rate fell to 4.8%, the Labor Department said Friday. Economists surveyed by Refinitiv were expecting the addition of 500,000 new jobs and the unemployment rate to slip to 5.1%. The jobs gains in August were revised up to 366,000 from 235,000.
The disappointing report comes hours after the Senate passed a measure that would raise the debt ceiling by $480 billion, giving the Treasury enough money to pay bills until Dec. 3. A House vote is expected in the coming days.
SENATE VOTES TO LIFT DEBT CEILING BY $480 BILLION
The developments caused traders to sell U.S. Treasurys, with the yield on the 10-year note rising 3 basis points to 1.6%, a four-month high.
In stocks, tech and other growth sectors underperformed as bond yields rose.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 171.00 | -7.41 | -4.15% |
| AAPL | APPLE INC. | 188.38 | -14.81 | -7.29% |
| MSFT | MICROSOFT CORP. | 359.84 | -13.27 | -3.56% |
Vaxart Inc.’s oral COVID-19 vaccine candidate reduces airborne transmission of the virus in animal model, according to a study led by Duke University. Shares of fellow vaccine makers, including Moderna Inc., took the news in stride.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| VXRT | VAXART | 0.34 | -0.04 | -11.26% |
| MRNA | MODERNA INC. | 25.11 | -0.62 | -2.41% |
Tesla Inc. will move its headquarters to Austin, Texas, from Palo Alto, California, CEO Elon Musk said Thursday. Still, the electric-car maker plans to increase production at its plants in California and Nevada.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 239.43 | -27.85 | -10.42% |
In deals, insurer Chubb Ltd. agreed to buy Cigna Corp.’s life, accident and supplemental benefits business in Asia Pacific and Turkey for $5.75 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CB | CHUBB LTD. | 280.84 | -21.64 | -7.15% |
| CI | THE CIGNA GROUP | 322.38 | -16.43 | -4.85% |
In commodities, West Texas Intermediate crude oil hit $80 intraday before closing up $1.05 to $79.35 a barrel, its highest close in seven years. Gold, meanwhile, slipped $1.60 to $1,756.30 an ounce.
Overseas markets were mixed with weakness in Europe and strength in Asia.
European bourses were modestly lower with Germany’s DAX 30 losing 0.29% and France’s CAC 40 sliding 0.61%. Britain's FTSE 100 gained 0.25%,
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In Asia, Hong Kong’s Hang Seng index added 0.55%, China’s Shanghai Composite advanced 0.67% and Japan’s Nikkei 225 gained 1.34%.