4.05pm: Tech stocks weigh on equity markets
US stocks finished the trading session on a down note as the economy created 194,000 jobs in September, well below the 500,000 expected.
At the close, the Dow eased 9 points to 34,746, while the S&P 500 gave back 8 points at 4,391 and the tech-heavy Nasdaq slipped 75 points, or 0.5%, to 14,580.
Energy stocks were among the few pockets of strength, as West Texas Intermediate (WTI) crude futures hit $80 a barrel for the first time in nearly seven years.
12:10pm: US equities mixed at midday
US stocks were mixed midday on a disappointing jobs report that depressed optimism about the short-term debt ceiling deal struck the day before.
The economy added just 194,000 jobs in September, well below estimates of 500,000, the Labor Department reported. However, the unemployment rate fell to 4.8%, its lowest point since 2016.
As of noon, the Dow Jones Industrial Average rose 22 points, or 0.06%, to 34,775. The S&P 500 decreased 3 points, or 0.06%, to 4,397.
The tech-heavy Nasdaq declined 52 points, or 0.33%, to stand at 14.606.
Chris Beauchamp, chief market analyst at online trading group IG, called the markets a “mixed picture” after the jobs report that missed forecasts.
“Some of the rampant bullishness of earlier in the week has been checked after yet another stumble for US job creation in today’s non-farm payrolls. Once more the big number has come in well below forecasts, proving that attempting to predict the flight path of an economy recovering from a pandemic is quite the tricky thing,” he said.
“Unfortunately for markets, a miss like today’s was the outcome least desired, since the Fed is on course to taper anyway, and it doesn’t look like today’s figure comes anywhere close to the kind of scary figure that might provoke Powell into swerving course at the last minute. Which means we have further evidence of a slowing recovery and the scaling back of asset purchases to cope with. Overall however, given the above, markets seem to have taken it reasonably well, holding their ground and avoiding a major drop so far this afternoon.”
The biggest gainer on the day so far is Theralink Technologies Inc, up 170% to $1.110 a share.
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9.35am: US shares lower amid voilatile trading in New York
Wall Street benchmarks were lower in early deals Friday amid volatile trading as markets mulled over the disappointing US job creation number.
The Dow Jones Industrial Average dropped around 60 points at 34,695, the S&P 500 shed around half a point at 4,399. The tech-laden Nasdaq index dropped ten points at 14,644.
"Today's US nonfarm payrolls were disappointing across the board, but they were not a disaster. They were 'further progress' but not that 'substantial.' I think this may delay tapering down the Fed's $120bn-a-month bond purchases but not derail it. It is therefore mildly negative for the dollar, but should not trigger a sustained dollar-selling trend," said Marshall Gittler, head of investment research at BDSwiss Holding Ltd.
"The unemployment rate fell by more than was expected, but that may have something to do with the fact that the participation rate also fell (instead of rising as was expected). That means people left the labor force, which would lead to a lower unemployment rate," he added.
Robert Alster, CIO at Close Brothers Asset Management, also noted: "This swing and miss for the US will come as a real disappointment to the Fed. Consumer confidence is low and the leisure, hospitality, and retail sectors continue to struggle."
8.45am: Jobs growth very weak
US stock futures waivered 45 minutes ahead of the market open after key data showed the US economy only added 194,000 jobs in September, although the unemployment rate fell to 4.8% as the coronavirus Delta variant and a tight labor market held back hiring.
US employers were expected to have added 490,000 jobs in September, up from 235,000 in August, which was also a big miss on the forecast last month.
The jobless rate remains higher than the pre-pandemic level of 3.5% but other measures, notably wage grow, suggest the labor market is tightening.
In an instant reaction, Naeem Aslam, chief market analyst at Avareade.com said: "Today’s US NFP data has made it clear that tapering isn’t necessary currently as the country’s labour market is still massively fragile. The data has broken the back of the dollar index and this pushed the gold price higher.
"As for the equity markets, the feeble economic reading isn’t so much of good news but at the same time traders will find some comfort in the fact that Fed isn’t going to tighten their belt anytime soon."
6.35am: US stocks seen opening mixed
US stocks are expected to open mixed as traders await a key jobs report that may signal the speed of the US Federal Reserve’s tapering program.
Futures for the Dow Jones Industrial Average futures rose 0.05% in Friday pre-market trading, while the broader S&P 500 index added just 0.01% and those for the tech-heavy Nasdaq 100 shed 0.06%.
Stocks closed higher on Thursday as congressional lawmakers reached a deal to increase the debt ceiling in the short term.
The agreement, according to reports, will extend the debt ceiling through early December.
The Dow Jones increased by 337 points, or 0.98%, to 34,754, while the S&P 500 rose 0.83% to 4,399 and the tech-heavy Nasdaq jumped 1.05% to 14,654.
The non-farm payrolls report for September, due out before the opening bell at 8:30am EST, is the last before the Fed’s next monetary policy decision in early November, where it’s expected to announce further details on the tapering of its quantitative easing programme.
US employers are expected to have added 490,000 jobs in September, up from 235,000 in August, which was a big miss on the forecast, said Neil Wilson, chief market analyst for markets.com.
“NFPs are important and could be market moving later since the Fed has explicitly tied tapering and subsequent rates lift-off to the labour market,” Wilson said.
“A weak number could just dissuade the Fed from announcing its taper in November, but I see this as a low-risk outcome. More likely is steady progress on jobs and the November taper announcement to follow.”