Stock futures are down after the release of key jobs data as the slump that has plagued Wall Street goes into its third day.
Stock were falling on Friday as Wall Street reacted to September’s jobs report and the two-day slump continued into its third day.
The Dow Jones Industrial Average fell 305 points, or 1.02%, to 29,621, while the S&P 500 was off 1.28%, and the Nasdaq lost down 1.8%.
The benchmark 10-year Treasury was up to 3.89%, while the yield on the policy sensitive 2-year Treasury was up at 4.302%. Bond yields and prices move inversely.
Nonfarm payrolls increased 263,000 for the month, falling short of economists expectations for 275,000. The unemployment rate was 3.5%, compare with the forecast of 3.7%.
Friday’s payrolls report is the last before the Federal Reserve makes its next decision on interest rates, scheduled for Nov. 2.
“Despite the loss of over a million job openings in August, a lot of strength remains in the labor market given how low jobless claims is trending,” said Edward Moya, senior market analyst for the Americas with Oanda. “Even if we see some pricing relief, a strong jobs market will allow the Fed to lean towards the hawkish side.”
Stocks finished lower Thursday as Wall Street went from a two-day rally to a two-day slump. The Dow Jones Industrial Average finished down 347 points, or 1.15%, to 29,926, while the S&P 500 lost 1.03% and the tech-heavy Nasdaq slipped 0.68%.
Stocks had ticked briefly higher late Wednesday before ending the session in the red and halting a two-day winning streak that marked the start of the quarter.
Chip stocks were under pressure Friday after Advanced Micro Devices (AMD) – Get Advanced Micro Devices Inc. Report warned its third-quarter revenue would be lower than anticipated. Nvidia (NVDA) – Get NVIDIA Corporation Report was down 4% while Intel (INTC) – Get Intel Corporation Report was down 3.9%.
Shares of pot companies Canopy Growth (CGC) – Get Canopy Growth Corporation Report and Tilray Brands (TLRY) – Get Tilray Brands Inc. Report were falling. Both had closed solidly higher Thursday after President Biden announced that he will pardon thousands of people convicted of marijuana possession.
Credit Suisse (CSGKF) stock, meantime, was up more 3.7% after the Swiss bank said it plans to buy back up to $3 billion in debt.
Credit Suisse stock and bond prices fell in recent weeks amid expectations the bank would raise new shares to fund its restructuring. An online frenzy also sparked concerns about the bank’s financial health.
Among other stocks, shares of DraftKings (DKNG) – Get DraftKings Inc. Report were up 7% on news that the online betting company may be looking to cut a deal with Disney’s (DIS) – Get The Walt Disney Company Report ESPN network.
On the flip side, Levi Strauss (LEVI) – Get Levi Strauss & Co Class A Report shares were down nearly 6% meantime after the jeans-maker lowered its full year forecast, citing the strong dollar and supply chain disruptions.
Also lower were shares of CVS Health (CVS) – Get CVS Health Corporation Report, which were down more nearly 7% after the company said its largest health insurance plan for Medicare recipients received a lower performance rating from the Federal government program.
