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S&P 500 Snaps Longest Winning Streak in Four Years on Weak Jobs Data

Published 2017-10-06, 04:09 p/m
© Reuters.
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Investing.com – The rally on Wall Street came to end on Friday as sentiment for risker assets eased slightly following a dip in nonfarm payrolls for the first time since 2010.

The Dow Jones Industrial Average closed higher at 22,773.43. The S&P 500 closed 0.11% lower while the Nasdaq Composite closed at 6590.18, up 0.07%.

The four-day wait for an update on labor market activity for the month of September proved anticlimactic somewhat as nonfarm payrolls fell while wage growth topped expectations.

The impact of hurricanes Harvey and Irma on labor market activity over the last month was evident as nonfarm payrolls fell by 33,000 in September, missing consensus estimate of 90,000. Nonfarm payrolls fell for the first time since September 2010.

The jobless rate fell to 4.2% while average hourly earnings topped expectations, rising 0.5% from the previous month. That fuelled expectations that a tighter labor market would spark a rebound in inflation, strengthening the Fed’s position to hike rates later this year.

Also weighing on the broader market was a slump in energy as crude oil prices posted a weekly loss for the first time four weeks.

On the corporate front, Shares of Amazon.com Inc (NASDAQ:AMZN) slipped a day after rising nearly 2% on expectations that the tech giant is set to disrupt the delivery industry with a new delivery program called “Seller Flex”.

The company will pick up packages from third-party sellers selling on its platform and deliver the products to customers.

'Bulls and Bears' on Wall Street

The top Dow gainers for the session: The Travelers Companies Inc (NYSE:TRV) up 0.5%, McDonald’s Corporation (NYSE:MCD) up 0.5% and Cisco Systems Inc (NASDAQ:CSCO) up 1.3%

Chevron Corporation (NYSE:CVX) down 1.3%, Verizon Communications Inc (NYSE:VZ) down 0.8% and General Electric Company (NYSE:GE) down 0.6%, were among the worst Dow performers of the session.

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