On October 6, 2021, a professional trader is working in a booth on the floor of the New York Stock Exchange (NYSE) in New York City, United States. Reuters / Brendan McDermid
8 October 2021
by Noel Randwich and Devik Jain
(Reuters) – US stocks fell on Friday after weak data showed expected job growth in September, but investors say the Federal Reserve Board will begin to reduce asset purchases this year. I expected.
Comcast fell 4.3% after Wells Fargo lowered price targets for media companies. This put pressure on the S&P 500 and Nasdaq, which entered negative territory. Charter Communications fell 4.5% after Wellfargo downgraded its cable operator from “overweight” to “underweight”.
Most of the 11 major S&P sectors fell, with real estate and materials falling the most, each down about 0.6%.
Oil rose more than 4% this week as the S&P 500 Energy Sector Index rose 2.3% and prices hit their highest level since 2014 due to the global energy crisis.
The US economy in September created the fewest jobs in nine months due to low school employment and labor shortages in some occupations, according to a report by the Labor Ministry on the number of non-farm payrolls. I did The unemployment rate fell from 5.2% to 4.8% in August and the average hourly wage rose 0.6%, higher than expected.
Kathy Lian, managing director of BK Asset Management in New York, said: “I think the Fed is on track.”
with a quarter-point tightening in the price of federal funds rate futures by the Federal Reserve Board until November or December of next year.
The Dow Jones Industrial Average fell 0.03% to 34,743 points in afternoon trade, while the S&P 500 fell 0.13% to 4,393.92.
The Nasdaq Composite ended 0.38% lower at 14,598.71.
Next week, the third quarter reporting season begins, with JPMorgan Chase and other major banks announcing the first results. Investors are focusing on global supply chain issues and labor shortages.
According to Refinitiv, analysts expect roughly 30% growth in quarterly S&P 500 earnings per share.
Liz Young, head of investment strategy at SoFi in New York, said: “If supply chain problems are driving up costs, companies with strong pricing power can offset these rising costs, but not if they don’t have the staff to hire them. If they meet, they can work. You can’t make up for lack of power.”
Issues going short on the New York Stock Exchange with a 1.30:1 ratio. On the Nasdaq, the 1.49:1 ratio favors the downtrend.
The S&P 500 posted 24 new 52-week highs and 3 new lows. The Nasdaq Composite posted 75 new highs and 95 new lows.
(Additional report by Devik Jain, Susan Mathew, Bansari Mayur Kamdar, Anissa Sarkar, Edited by Maju Samuel and David Gregorio)