ECONOMIC SILUET: Dow flat Friday, up for the week | September's jobs miss

Jumat, 08 Oktober 2021

Dow flat Friday, up for the week | September's jobs miss | Earnings season approaches

FRI, OCT 08, 2021

EVENING BRIEF

AS OF FRI, OCT 08, 2021 • 05:07 ET

DJIA		34746.25
		-0.03%	-8.69

S&P 500		4391.34
		-0.19%	-8.42

NASDAQ		14579.54
		-0.51%	-74.48

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DOW
NAME	LAST	CHG	%CHG
AAPL	142.90	-0.39	-0.27%
VZ	53.24	-0.66	-1.22%
MSFT	294.85	UNCH	UNCH

S&P 500
NAME	LAST	CHG	%CHG
F	15.12	+0.23	+1.54%
AAPL	142.90	-0.39	-0.27%
BAC	44.34	+0.22	+0.50%

NASDAQ
NAME	LAST	CHG	%CHG
AAPL	142.90	-0.39	-0.27%
AMD	105.06	-1.39	-1.31%
CMCSA	54.70	-2.70	-4.70%

EDITOR'S NOTE

Stocks ticked down on Friday, but the major averages were higher for the week – even after a series of volatile trading sessions. Earnings season, which begins in the new week, may become the next catalyst for the markets.

Friday's jobs report was a mixed picture for investors. The headline number was a major disappointment as the economy added 194,000 jobs in September, the Labor Department reported. That's well below the Dow Jones estimate of 500,000. A bleaker labor picture could stall the Federal Reserve, as it prepares to slow its $120 billion-per-month bond-buying program.

On the positive side, the unemployment rate fell to 4.8% – the same level seen in late 2016 – and a lower than economists expected. August's jobs report was revised up to 366,000 compared to the initial read of 235,000.

"In our view these figures are good enough, and when combined with the debt-ceiling can being kicked down the road, likely solidifies November as 'go time' for tapering," said Wells Fargo's Christopher Harvey.

"We continue to expect a choppy equity market rally and a two-to-four-week tech bounce, but the bounce probably peters out next month when the Fed says those magical words: We will begin to taper," he added.

Earnings season — which kicks off next week with big banks' results — is expected to be another strong series of reports, despite some worries about supply chain issues and higher costs. For the third quarter, S&P 500 earnings growth is expected to rise 27.6%, according to FactSet. That would be the third-highest growth rate since 2010.

"We do expect another solid earnings season, but we've seen some high-profile warnings already, so corporate America could have a rather high bar to clear this quarter," said Ryan Detrick, chief market strategist at LPL Financial. "Buckle up."