With much stronger than expected jobs data adding to recent concerns about the outlook for interest rates, stocks have moved mostly lower in morning trading on Friday. The major averages have all moved to the downside, although selling pressure has been somewhat subdued.<\/p>\n
Currently, the major averages are off their lows of the session but still in negative territory. The Dow is down 177.89 points or 0.5 percent at 32,941.68, the Nasdaq is down 36.44 points or 0.3 percent at 13,183.39 and the S&P 500 is down 19.83 points or 0.5 percent at 4,238.36.<\/p>\n
The weakness on Wall Street comes following the release of a Labor Department report showing employment in the U.S. surged by much more than expected in the month of September.<\/p>\n
The Labor Department said non-farm payroll employment shot up by 336,000 jobs in September compared to economist estimates for an increase of about 170,000 jobs.<\/p>\n
The closely watched Labor Department report also showed notable upward revisions to job growth in the two previous months.<\/p>\n
Employment in August and July jumped by 236,000 jobs and 227,000 jobs, respectively, reflecting a net upward revision of 119,000 jobs.<\/p>\n
“Payrolls surged in September with upward revisions underscoring the strength seen in economic activity over the summer,” said ING Chief International Economist James Knightley.<\/p>\n
He added, “While we doubt this can last, today’s number keeps alive the prospect of another rate hike and certainly backs the Federal Reserve’s argument on the need for interest rates to stay higher for longer.”<\/p>\n
The report triggered a spike by treasury yields amid renewed concerns about the outlook for interest rates, with yields once again soaring to their highest levels in over sixteen years.<\/p>\n
Sector News<\/p>\n
Telecom stocks have shown a significant move to the downside on the day, dragging the NYSE Arca North American Telecom Index down by 2.5 percent to its lowest intraday level in two months.<\/p>\n
Interest rate-sensitive utilities and commercial real estate stocks are also seeing considerable weakness, with the Dow Jones Utility Average and the Dow Jones U.S. Real Estate Index falling by 1.9 percent and 1.5 percent, respectively.<\/p>\n
Significant weakness is also visible among retail stocks, as reflected by the 1.5 percent drop by the Dow Jones U.S. Retail Index. The index has fallen to a four-month intraday low.<\/p>\n
Tobacco, housing and banking stocks have also moved to the downside on the day, while gold stocks are bucking the downtrend amid a modest increase by the price of the precious metal.<\/p>\n
Other Markets<\/p>\n