US. Stocks were down late in the morning on Friday after trading slightly higher at the start of trading, as new jitter in trade relations overshadowed a November employment report.
How do the benchmarks work?
The Dow Jones Industrial Average
fell 237 points or 1% at 24,711, the S & P 500 Index
has dropped 21 points or 0.8% at 2,674, while the Nasdaq Composite Index
was trading at 7,095 points, down 86 points or 1.3%.
Check out: A Death Cross for the S & P 500 Highlights the Stock Market
This week, the Dow, S & P 500, and Nasdaq will see declines of more than 3%.
Read: The Dow has just made a 785-point slump, marking the most astonishing turn since March
. Late Monday morning, both the S & P 500 and the Dow threatened to fall into negative territory for the year, while the Nasdaq stuck to a 3% annual forward
Driving the Market
November 155,000 new jobs created, the Labor Department estimated Friday morning to be below the expectations of 190,000 new jobs per MarketWatch survey among economists.
The employment report also showed that, as expected, the unemployment rate remained stable at 3.7%. The average hourly wages increased from October to 6 cents per hour (0.2%), just below expectations. They have grown at 3.1% yoy, their highest level since 2009.
Employment figures of particular importance to investors As these data will inform the Federal Reserve Interest Rate Commission (FEDC), the FOMC is preparing to decide whether to use the Rates at its next meeting from 18 to 19 December.
The signs that the FOMC is less aggressive in normalizing interest rates have increased, and The Wall Street Journal said on Thursday that Fed officials await a new mentality at this December meeting.
Expectations Interest rate hikes in December show a 76.6% probability, compared to 83% a week ago, according to the CME Group. Expectations are rising that policymakers could cool the rate hike path in 2019.
The job data comes after a frenetic session marked by fears of intensification of US-China trade disputes. This happened following the arrest of a leading Chinese technology leader at Chinese telecommunications giant Huawei Technologies in Canada, which intensified concerns about a market already concerned about Beijing-Washington relations regarding customs and intellectual property rights.
Read: Huawei Arrest Causes Concern in Both Silicon Valley and Abroad
These fears, coupled with a continued drop in crude oil prices, have particularly upset investors and threaten global economic growth.
What do market participants say about this?
"The job report really got the needle right", J.J. Kinahan, Chief Market Strategist at TD Ameritrade, told MarketWatch that 150,000 new jobs are neither too high nor too low for investors.
"If things were really hot, the market would have interpreted this as a number that would force it. The Fed should raise interest rates not only in December but also in March," he said. "They did not want to go down the drain as it would have shaken confidence in the economy," he said. Steve Chiavarone, Portfolio Manager at Federated Investors, told MarketWatch, opposite MarketWatch The employment report was bullish, trade concerns will continue to weigh on the market in the near term.
On this list of concerns is the recent decline in capital expenditures, which he says is "absolutely related to trade." 19659008] "Businesses can not plan their global supply chains, with so much uncertainty about where politics is going, and if you can not plan, you can not invest," said Chiavarone. This momentum will hurt the US economy, productivity growth and equity values if China and the US fail to reach an agreement that provides assurance on the new trading rules.
Which stocks are in focus?
Stocks of Big Lots Inc. .
are down more than 22% after an unexpectedly strong third quarter.
Shares of Broadcom Inc. .
AVGO, + 1.41%
are in focus after the chipmaker announced fourth-quarter earnings and sales Thursday night that exceeded Wall Street expectations. The stock gained 1.8% on Friday morning.
Ulta Beauty Inc. .
Equities declined 8.4% on the early trading day after a profit was announced Thursday night that predicted weaker holiday sales analysts hoped.
MO, + 2.23%
are in focus after the company has announced that it has a 45% stake in the cannabis company Cronos Group Inc. will take over.
CRON, + 21.85%
worth $ 1.8 billion. The stock has risen by 1.3%, while the Cronos share in the news by more than 21%.
What other data and Fed speakers are coming up?
- Wholesaler inventories rose 0.8% in October as sales fell 0.2%, the Commerce Department reported Thursday.
- The University of Michigan consumer sentiment index was 97.5, ahead of expectations of 97.3 per market survey of economists.
- The Federal Reserve Board Gov. will speak at 12:15.
- St. The president of Louis Fed, James Bullard, will speak at 1pm.
- A consumer credit publication for October will be released at 15:00.
How are other markets traded?
The Asian markets are trading mostly higher on Friday, the Nikkei 225
NIK, + 0.82%
+ 0.8% and markets in South Korea
SEU, + 0.34%
XJO, + 0.42%
advancing in the day. The Shanghai Composite Index
SHCOMP, + 0.03%
was virtually unchanged with increases of less than 0.1%.
European markets also traded higher on Friday, both for Stoxx Europe 600
SXXP, + 0.82%
and the FTSE 100
UKX, + 1.40%
CLF9, + 4.06%
rises 4.3% on Friday as gold rises
GCG9, + 0.60%
increases by 0.6% and the US dollar
fell 0.1% lower.
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