CNBC: Major indexes fall 1%, Dow drops 250 in open after jobs miss
By Evelyn Cheng 9:30am EST
U.S. stocks opened sharply lower Friday as Wall Street digested a weaker-than-expected jobs report.
The Dow Jones industrial average fell more than 200 points in the open, with Goldman Sachs the greatest weight on the index.
The Nasdaq composite lost more than 1 percent, with Apple off 1 percent and the iShares Nasdaq Biotechnology ETF (IBB) down more than 2 percent.
“We’re not getting any clarity from this jobs report. More uncertainty. And the uncertainty makes people unwilling to hold anything,” said JJ Kinahan, chief strategist at TD Ameritrade.
“This is one more thing that puts the Fed into a tight spot,” he said.
Analysts did not expect a retest of the August correction lows immediately on Friday.
The Dow futures fell more than 200 points, after earlier rising nearly 100 points, as the stock index futures all gave up early morning gains. The 10-year yield fell below 2 percent for the first time since August. The 2-year yield fell to 0.57 percent.
The euro gained against the dollar to top $1.13 ,with the yen at 119.17 yen against the dollar.
U.S. stocks opened sharply lower Friday as Wall Street digested a weaker-than-expected jobs report.
The Dow Jones industrial average fell more than 200 points in the open, with Goldman Sachs the greatest weight on the index.
The Nasdaq composite lost more than 1 percent, with Apple off 1 percent and the iShares Nasdaq Biotechnology ETF (IBB) down more than 2 percent.
“We’re not getting any clarity from this jobs report. More uncertainty. And the uncertainty makes people unwilling to hold anything,” said JJ Kinahan, chief strategist at TD Ameritrade.
“This is one more thing that puts the Fed into a tight spot,” he said.
Analysts did not expect a retest of the August correction lows immediately on Friday.
The Dow futures fell more than 200 points, after earlier rising nearly 100 points, as the stock index futures all gave up early morning gains. The 10-year yield fell below 2 percent for the first time since August. The 2-year yield fell to 0.57 percent.
The euro gained against the dollar to top $1.13 ,with the yen at 119.17 yen against the dollar.
The U.S. economy created 142,000 jobs in September, a number far below the expected 203,000 and could cool expectations that the Federal Reserve will start raising interest rates soon. August and July figures were also revised lower.
Unemployment held at 5.1 percent, according to the Labor Department. The participation rate plunged to 62.4 percent.
Average hourly wages fell by a cent to $25.09 during the month and were up only 2.2 percent from the same month in 2014, pointing to marginal inflationary pressures, Reuters said.
Fed funds futures are now pricing the first rate hike in March 2016.
The Fed has said it will base its decision on economic data, though it did caution that it held off in September because of international developments, meaning a slowing China and its possible impact on the economy.
Factory orders are due at 10:00 a.m.
“There’s been a disconnect between Main Street and Wall Street for some time, the reason why the Fed keeps kicking the can down the road,” said Adam Sarhan, CEO of Sarhan Capital.
Unemployment held at 5.1 percent, according to the Labor Department. The participation rate plunged to 62.4 percent.
Average hourly wages fell by a cent to $25.09 during the month and were up only 2.2 percent from the same month in 2014, pointing to marginal inflationary pressures, Reuters said.
Fed funds futures are now pricing the first rate hike in March 2016.
The Fed has said it will base its decision on economic data, though it did caution that it held off in September because of international developments, meaning a slowing China and its possible impact on the economy.
Factory orders are due at 10:00 a.m.
“There’s been a disconnect between Main Street and Wall Street for some time, the reason why the Fed keeps kicking the can down the road,” said Adam Sarhan, CEO of Sarhan Capital.
In Asia, Japan’s Nikkei finished just 0.02 percent higher while Hong Kong’s Hang Seng surged 3.17 percent. Markets in mainland China remained closed for the National Day holiday, which lasts one week.
Read MoreEarly movers: DNKN, MDLZ, MU, AMD, JWN, TMUS, S, QCOM & more
No significant earnings are expected today.
Read MoreEarly movers: DNKN, MDLZ, MU, AMD, JWN, TMUS, S, QCOM & more
No significant earnings are expected today.
On tap this week:
Friday
10 a.m.: Factory orders
11 a.m.: Cleveland Fed President Loretta Mester
1:30 p.m.: Fed Vice Chair Stanley Fischer on monetary policy at Boston Fed
URL: http://www.cnbc.com/2015/10/02/us-stocks-open-sharply-lower-after-jobs-miss.html
Friday
10 a.m.: Factory orders
11 a.m.: Cleveland Fed President Loretta Mester
1:30 p.m.: Fed Vice Chair Stanley Fischer on monetary policy at Boston Fed
URL: http://www.cnbc.com/2015/10/02/us-stocks-open-sharply-lower-after-jobs-miss.html
