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.
Post a Comment