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A weaker-than-expected September jobs report and news of President Trump and his wife being tested positive for Covid-19 put stocks through a rollercoaster ride on Friday, eventually pushing benchmarks to close in the red.
The Dow Jones Industrial Average (DJI) fell 134.09 points, 0.5%, to close at 27,682.81 and the S&P 500 shed 32.36 points, or 1%, to close at 3,348.44. The Nasdaq Composite Index closed at 11,075.02, declining 251.49 points, or 2.2%. The fear-gauge CBOE Volatility Index (VIX) increased 3.5%, to close at 27.63. Advancing issues outnumbered declining ones for 1.45-to-1 ratio on the NYSE and a 1.13-to-1 ratio on the Nasdaq favored decliners.
How Did the Benchmarks Perform?
Out of 11 major sectors of the S&P 500, seven closed in the green on Friday. A 2.6% decline in technology and more than 1.1% drop in consumer discretionary and communication services erased significant gains in the industrials, utilities and real estate sectors.
The Dow and the Nasdaq was weighed down by large decline in tech stocks. Shares of Apple Inc. (AAPL - Free Report) , Microsoft Corporation (MSFT - Free Report) , Intel Corporation (INTC - Free Report) and salesforce.com, inc. (CRM - Free Report) closed 3.2%, nearly 3%, 2.4% and 2.2% lower for the session, respectively.
On Friday, the S&P 500 posted six new 52-week highs and one new low, while the Nasdaq Composite recorded 56new highs and34new lows.
September Jobs Report Weaker-than-Expected
On Friday, the Bureau of Labor Statistics (BLS) reported that the US economy added 661,000 new jobs in September, lower than the consensus estimate of 879,000. The unemployment rate fell to 7.9%, the lowest level amid the pandemic and beats the consensus estimate of 8.2% and previous month’s rate of 8.4%. However, September’s jobs reports indicate deceleration in economic recovery as hiring in the month was the smallest since the economy reopened.
BLS also reported that employment in the field of education including hiring in local schools and colleges dropped due to increase in adoption of online learning. Reopening of bars and restaurants helped in addition of 200,000 jobs in September, however, 2.3 million employees are still out of work in this industry. In the reported month, retailers and professional businesses hired 142,000 and 89,000 employees. While the manufacturing sector recovered more than half of the jobs lost, in the beginning of the pandemic by adding 66,000 new payrolls.
The US economy has lost nearly 23 million jobs due to the pandemic this year. Since the recovery efforts begun in May, the economy has recovered about 11.4 million jobs so far.
House Passes a $2.2 trillion Democratic Stimulus Package
On Thursday night, the House of Representatives passed a $2.2 trillion Democratic coronavirus stimulus package. However, the bill is unlikely to be approved by the Republican-controlled Senate, as Senate Majority Leader Mitch McConnell has already opposed spending trillions more on the federal response to the pandemic.
Yet, investors remain hopeful for a fiscal stimulus which could provide relief to the economy that continues to face new coronavirus cases every day and corporate plan to layoffs and furloughs if the current scenario persists. House Speaker Nancy Pelosi said that bill is still open for negotiation and signaled aid for the airline industry could be on way. Pelosi’s speech helped shares of airlines jumped higher after she said that relief for airline workers is “imminent”, hence the industry should delay furloughs.
Stocks traded a rocky road as investors gauged jobs report and fiscal stimulus hope on Friday. Hopes eclipsed after President Donald Trump tweeted that he and the first lady Melania Trump have been tested positive for the coronavirus. The diagnosis increased worries as Election Day is just over a month away. In fact, markets responded abruptly to the news since Trump had an overly optimistic outlook on coronavirus’ impact at present and has pushed for schools, businesses and sports leagues to reopen.
On the brighter side, White House physician Dr. Sean Conley said he expects the President to “continue carrying out his duties without disruption while recovering.”
Weekly Roundup
Major Indexes notched a weekly gain in a row despite the choppy trading session on Friday. For the week ending Oct 2, the S&P 500 and the Nasdaq added1.5% each, while the Dow ended the week 1.9% higher. Spike in new coronavirus cases across Europe and America and weak economic data kept weighing over bullish investor sentiments across the week.
Exxon Mobil Corporation (XOM - Free Report) recently provided a glimpse of third-quarter operations, which are expected to have been affected by the pandemic at large. (Read More)
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Stock Market News for Oct 5, 2020
A weaker-than-expected September jobs report and news of President Trump and his wife being tested positive for Covid-19 put stocks through a rollercoaster ride on Friday, eventually pushing benchmarks to close in the red.
The Dow Jones Industrial Average (DJI) fell 134.09 points, 0.5%, to close at 27,682.81 and the S&P 500 shed 32.36 points, or 1%, to close at 3,348.44. The Nasdaq Composite Index closed at 11,075.02, declining 251.49 points, or 2.2%. The fear-gauge CBOE Volatility Index (VIX) increased 3.5%, to close at 27.63. Advancing issues outnumbered declining ones for 1.45-to-1 ratio on the NYSE and a 1.13-to-1 ratio on the Nasdaq favored decliners.
How Did the Benchmarks Perform?
Out of 11 major sectors of the S&P 500, seven closed in the green on Friday. A 2.6% decline in technology and more than 1.1% drop in consumer discretionary and communication services erased significant gains in the industrials, utilities and real estate sectors.
The Dow and the Nasdaq was weighed down by large decline in tech stocks. Shares of Apple Inc. (AAPL - Free Report) , Microsoft Corporation (MSFT - Free Report) , Intel Corporation (INTC - Free Report) and salesforce.com, inc. (CRM - Free Report) closed 3.2%, nearly 3%, 2.4% and 2.2% lower for the session, respectively.
On Friday, the S&P 500 posted six new 52-week highs and one new low, while the Nasdaq Composite recorded 56new highs and34new lows.
September Jobs Report Weaker-than-Expected
On Friday, the Bureau of Labor Statistics (BLS) reported that the US economy added 661,000 new jobs in September, lower than the consensus estimate of 879,000. The unemployment rate fell to 7.9%, the lowest level amid the pandemic and beats the consensus estimate of 8.2% and previous month’s rate of 8.4%. However, September’s jobs reports indicate deceleration in economic recovery as hiring in the month was the smallest since the economy reopened.
BLS also reported that employment in the field of education including hiring in local schools and colleges dropped due to increase in adoption of online learning. Reopening of bars and restaurants helped in addition of 200,000 jobs in September, however, 2.3 million employees are still out of work in this industry. In the reported month, retailers and professional businesses hired 142,000 and 89,000 employees. While the manufacturing sector recovered more than half of the jobs lost, in the beginning of the pandemic by adding 66,000 new payrolls.
The US economy has lost nearly 23 million jobs due to the pandemic this year. Since the recovery efforts begun in May, the economy has recovered about 11.4 million jobs so far.
House Passes a $2.2 trillion Democratic Stimulus Package
On Thursday night, the House of Representatives passed a $2.2 trillion Democratic coronavirus stimulus package. However, the bill is unlikely to be approved by the Republican-controlled Senate, as Senate Majority Leader Mitch McConnell has already opposed spending trillions more on the federal response to the pandemic.
Yet, investors remain hopeful for a fiscal stimulus which could provide relief to the economy that continues to face new coronavirus cases every day and corporate plan to layoffs and furloughs if the current scenario persists. House Speaker Nancy Pelosi said that bill is still open for negotiation and signaled aid for the airline industry could be on way. Pelosi’s speech helped shares of airlines jumped higher after she said that relief for airline workers is “imminent”, hence the industry should delay furloughs.
Shares of American Airlines Group Inc. (AAL - Free Report) , United Airlines Holdings, Inc. (UAL - Free Report) and Delta Air Lines, Inc. (DAL - Free Report) closed 3.3%, 2.4% and 2.1% higher on Friday. United Airlines carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Sell) stocks here.
President Trump Tested Covid-19 Positive
Stocks traded a rocky road as investors gauged jobs report and fiscal stimulus hope on Friday. Hopes eclipsed after President Donald Trump tweeted that he and the first lady Melania Trump have been tested positive for the coronavirus. The diagnosis increased worries as Election Day is just over a month away. In fact, markets responded abruptly to the news since Trump had an overly optimistic outlook on coronavirus’ impact at present and has pushed for schools, businesses and sports leagues to reopen.
On the brighter side, White House physician Dr. Sean Conley said he expects the President to “continue carrying out his duties without disruption while recovering.”
Weekly Roundup
Major Indexes notched a weekly gain in a row despite the choppy trading session on Friday. For the week ending Oct 2, the S&P 500 and the Nasdaq added1.5% each, while the Dow ended the week 1.9% higher. Spike in new coronavirus cases across Europe and America and weak economic data kept weighing over bullish investor sentiments across the week.
Stocks that Made Headline
Will ExxonMobil Report Quarterly Loss for 3rd Time in a Row?
Exxon Mobil Corporation (XOM - Free Report) recently provided a glimpse of third-quarter operations, which are expected to have been affected by the pandemic at large. (Read More)
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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