Friday's Market Recap - Strong August Employment Number And Weekly Hourly Wage, Sends Stocks Low
What is The Premarket Telling Us?
7:00 AM.
US stock futures are down this morning, suggesting, markets will be down at the open. Dow futures are off 37 points, Nasdaq futures down 11 points, and the S&P lower by 4 points.
August Employment number rose by 201,000 and the unemployment rate held at 3.9%.
Markets learned today, that TESLA Chief Financial Officer is leaving the company after four weeks on the job.
Activist Investor, Dan Loeb, of Third Point is seeking to replace the entire board of Campbell Soup.
On The Bond Desk:
The US 10 Year Bond Yield at 2.88%, down 0.02% or (2 basis points).
Currency Desk:
Euro dollar: 1.16
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $67.75/barrel, down 0.03%.
On the Earnings Calendar:
None.
In M&A News:
None
What About The Asian And European Markets?
Major Asian markets traded mixed on Friday. Japan (Nikkei 225) lost 0.80%, Shanghai gained 0.40%, Hong Kong (Hang Seng) was off by 0.01%.
Major European markets were also mixed in their session. German (DAX) added 0.04%, France CAC 40 up 0.16%, London FTSE 100 fell 0.56%.
Market And Sector Dynamics
Markets opened the trading day decidedly lower, with the Dow sliding 84 points, Nasdaq down 37 points, and the S&P down 10 points. Investors are expressing caution, after a strong 201,000 rise in employment for the month of August. The report also showed an increase in average hourly wages, up 0.40%, and a 2.90% increase over the last year, triggering fears that the Feds may have to quicken the pace of rate hikes, to fight inflation. Crude oil prices also fell early, with WTI crude oil at $67.17/barrel, down 0.94%.
By noon, stocks had bounced off the lows of the morning, but sank to the lows of the day, with the Dow down 170 points, shortly before 1:00 PM, as investors feared inflation expectations could cause the Fed to increase the pace of rate hikes. Stocks did recover some of the earlier losses, later in the afternoon session, but not enough to return to positive territory.
Ten of the eleven S&P sectors traded lower today, led by real estate, utilities, basic materials, telecommunication services, technology, and industrials.
Factors Influencing Today's Market
August Employment number rose a solid 201,000, and the unemployment rate held at 3.9%.
Average hourly earnings also ticked up 0.40% or 2.90% year over year, heightening fears about the Fed and rate hikes.
Crude oil prices were mostly unchanged in today's session. WTI crude prices closed at $67.75/barrel, down 0.03%.
This week's Baker Hughes Oil Rig count fell by 2 rigs to 860 rigs total.
Market Close Volume Traded And Advance Decline Ratio
At the end of today's trading, markets were moderately lower. The Dow fell 79.33 points, Nasdaq lost 20.18 points, and the S&P was down 6.37 points. Total NYSE volume traded, a light 2.93 billion shares. Declining shares outpaced Advancing shares better than 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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