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Mid-Day Recap: Post-Employment Report Stock Sell-Off is Modest
This morning’s employment report was called “terrible,†“dreary,†“bleak,†and “painful,†but halfway through the session equity markets are only modestly lower. It appears that yesterday’s 2.6% setback in the S&P 500 was deep enough to satisfy investors who believe the stock market had overheated.rnrnAs of 12:30, the S&P is down 0.23% to 1,027, the Dow is trading 0.11% lower at 9,498, and the NASDAQ is down 0.12% to 2,055.
263,000 Jobs Lost in September. Unemployment Rate at 26 Year High
The economy shed more jobs than Wall Street was expecting in September, sending equity futures south in search of a bottom after three days of sell-offs. The monthly employment report said 263,000 jobs vanished in September, almost one-hundred thousand worse than the market forecast.rnrnJob cuts pushed the unemployment rate up one-tenth to a fresh 26-year high at 9.8%. That rate is made worse knowing the average duration of unemployment also sits at a record high of 26.2 weeks. Indeed, more than one-third (35.6%) of the unemployed have been jobless for 27 weeks or more.
Unemployment Inching towards Double-Digits
Mixed data caused US equities to simply plummet yesterday, marking the third straight decline in markets. The benchmark S&P 500 fell 2.6% on the day, putting the week’s loss at -3.14%. Shares in the Nasdaq were even worse with a 3.06% nosedive.rnrnThe rapid sell-off spread overseas this morning. “Virtually every overseas equity market is down, with the notable exception of China,†said Sal Guatieri from BMO Capital Markets.rnrnTreasuries are absorbing investors money, driving the 10-year yield down two basis points to a four-month low of 3.16%. That’s giving a boost to the housing market, as 30-year mortgage rates remain below
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