Market Update
Stocks Lack Momentum and Direction Ahead of Inflation Report
Barry Adams
11 Oct, 2022
New York City
Stocks on Wall Street in early trading struggled to trade above flat-line ahead of consumer inflation data on Wednesday.
The S&P 500 index increased 0.4% to 3,625.77 and the Nasdaq Composite index added 0.1% to 10,554.66.
Crude oil futures for the immediate month declined $1.59 to $89.50 a barrel but natural gas rose 10 cents to $6.54 a thermal unit.
The yield on 2-year Treasury notes decreased to 4.29%, 10-year Treasury notes fell to 3.89% and 30-year Treasury bonds dropped to 3.89%.
European Markets Extend Losses to 5th Day
European markets extended losses for the fourth day in a row on the rising tensions in Ukraine.
Investors are worried that the aggressive rate tightening is likely to depress corporate earnings and dip the economy into a recession and inflation may remain elevated longer than expected.
The DAX index declined 0.4% to 12,220.25, the CAC-40 index decreased 0.1% to 5,833.20 and the FTSE 100 index dropped 1.1% to 6,885.23.
The euro traded near 97.77 U.S. cents and the British pound closed at $1.117.
The yield on 10-year German government bonds rose to a 11-year high and the Bank of England expanded its bond market intervention to include inflation-linked bonds.
German bund yields rose after reports suggested that German Chancellor Olaf Scholz is prepared to back European Union-wide joint debt issuance to tackle the surging costs of energy imports.
G7 leaders conducted a virtual meeting and discuss additional steps after Russia stepped up its bombing across Ukraine following an attach on a bridge linking Ukraine and Crimea.
The yield on 10-year German bonds was nearly unchanged at 2.29%, French bonds closed down 2.885%, British Gilt at 4.41% and Italian bonds to 4.663%.
Brent crude oil declined 1.8% to $94.49 a barrel and TTF natural gas price edged up a fraction to 154.50 euros a megawatt hour.
The UK jobless rate fell to the lowest level since 1974 after more people dropped out of the labor force and employers struggled to fill vacancies.
The UK jobless rate declined to 3.5% in the three months to August from 3.6% in the period to July, the data from the Office for National Statistics reported Tuesday.
Asian Markets Look Down
Asian markets traded lower reflecting a growing list of global worries, reflecting earnings anxieties and another Covid-19 virus flare in China.
The Nikkei 225 average decreased 2.64% to 26,401.25 and the Topix index fell 1.86% to 1,871.24, after a 3-day weekend.
Tech stocks in China led the decliners after the U.S. tightened semiconductor technology and equipment sale restrictions.
The Shanghai index closed higher 0.2% to 2,979.79 after COSCO Shipping Holdings Co Ltd offered a positive outlook.
The benchmark indexes in India fell on the worries that the rising U.S. dollar will stoke worldwide inflation and slow down economic growth rate.
The Sensex closed down 843.79 points or 1.46 percent, to 57,147.32 and the Nifty index fell 257.45 points or 1.49% to 16,983.55.
The tech heavy Kospi average fell 1.83% to 2,192.07 following a 3-day holiday and investors turned cautious ahead of the U.S. consumer inflation data on Wednesday.
Rate Anxieties and Recession Worries Drag Indexes Lower
Barry Adams
10 Oct, 2022
New York City
U.S. stocks traded lower ahead of the busy week of economic data and the kickoff of the earnings season.
The dollar advanced for the fourth day in a row dragging major currencies around the world to multi-decade lows, reflecting a growing consensus that the Fed is set to lift rates at its next meeting in three weeks.
The Fed's policy committee is scheduled to announce its rate decision on November 2, and investors are anticipating a fourth rate hike in a row of 75 basis points.
Investors are also hoping that the September consumer price index data, scheduled to be released Thursday October 13, may show easing of inflation pressures.
Tech stocks led the decliners in trading on Wall Street on the worries that the Fed will continue its aggressive rate hike plan, even if the economy dips to a recession and the labor market loses steam.
The S&P 500 index fell 0.8% to 3,612.39 and the Nasdaq Composite declined 1.04% to 10,542.13.
The Nasdaq is trading near a two-year low as chipmakers dive after President Biden's administration imposed more controls on the export of technology and equipment to China.
Banks and financial services are in focus ahead of the start of the earnings season with Morgan Stanley, Goldman Sachs, JP Morgan Chase and Citigroup are scheduled to report this week.
Crude oil declined $1.90 to $90.73 and natural gas dropped 21 cents to $6.53 a thermal unit.
In Friday's trading, the yield on 2-year Treasury notes rose to 4.31%, 10-year Treasury notes jumped to 3.89% and 30-year bonds inched up to 3.84%.
U.S. bond market was closed for trading for Columbus Day holiday.
European Markets Erase Morning Losses
European markets lacked direction in early trading and turned weaker after the indexes in New York opened lower.
Market indexes closed down ahead of the start of the earnings season and investors also awaited the U.S. consumer price inflation data this week.
The DAX index inched up 0.3% to 12,311.18, the CAC-40 index fell 0.1% to 5,860.04 and the FTSE 100 index fell 0.3% to 6,969.27.
The euro declined 0.4% to 96.98 U.S. cents and the British pound eased 0.43% to $1.104.
Brent crude oil edged down 2.3% to $95.59 a barrel and TTF natural gas dropped to a 3-month low of 154.12 euros a megawatt hour.
The bond yields continued to rise across Europe on the worries that central banks are not likely to slowdown aggressive rate hike campaigns.
The yield on 10-year German bonds rose to 2.32%, British Gilt advanced to 4.458% and Italian bonds increased to 4.61%.
The rising economic uncertainties and government spending are also pushing the yields on the U.K. bonds closer to Italian bonds.
Euro Zone Confidence Index Drops to 2020 Low
The euro zone confidence index declined in September on the rising worries of inflation and growing uncertainties linked to the Russia-Ukraine war.
The Sentix investor sentiment declined to -38.3 in October from -31.8 in September, the behavior research institute Sentix reported Monday.
The index was at the lowest level since May 2020 and the current situation index dropped sharply to -35.5 from -26.5 in September.
Swiss Jobless Rate Stable
The Swiss franc held at 99.98 U.S. cents and the Canadian dollar inched up 0.1% to $1.373.
The jobless rate declined marginally in September, according to the latest data released by the State Secretariat for the Economic Affairs.
The unadjusted Swiss unemployment rate fell to 1.9% in September from 2.0% in August and dropped from 2.6% a year ago.
The seasonally adjusted jobless rate was unchanged at 2.1% in September from the previous month.
Asian Markets Down on Rate Path Worries
Benchmark indexes in Asia closed down on the worries that the higher rates will fuel further rise in the U.S. dollar and stoke worldwide inflation.
The Nikkei 225 index declined 0.7% to 27,116.11, the Hang Seng Index plunged 2.9% to 17,216.66 and the the Sensex index decreased 0.3% to 57,991.11.
The Indian rupee edged down to a new record low of 82.31 and the Japanese yen to a new 24-year low of 145.75.
Then Korean won and Australian dollar also declined as the U.S. dollar continued its rise against major worldwide currencies.
South Korea's current account turned to a deficit of $3.05 billion in August from the downwardly revised $0.79 billion, the Bank of Korea said Monday.
The goods account turned to a deficit of $4.45 billion from $6.03 billion a year ago.
European Markets Erase Morning Losses, Natural Gas at 3-month Low
Bridgette Randall
10 Oct, 2022
Frankfurt
European markets lacked direction in early trading and turned weaker after the indexes in New York opened lower.
Market indexes closed down ahead of the start of the earnings season and investors also awaited the U.S. consumer price inflation data this week.
The DAX index inched up 0.3% to 12,311.18, the CAC-40 index fell 0.1% to 5,860.04 and the FTSE 100 index fell 0.3% to 6,969.27.
The euro declined 0.4% to 96.98 U.S. cents and the British pound eased 0.43% to $1.104.
Brent crude oil edged down 2.3% to $95.59 a barrel and TTF natural gas dropped to a 3-month low of 154.12 euros a megawatt hour.
Euro Zone Confidence Index Drops to 2020 Low
The euro zone confidence index declined in September on the rising worries of inflation and growing uncertainties linked to the Russia-Ukraine war.
The Sentix investor sentiment declined to -38.3 in October from -31.8 in September, the behavior research institute Sentix reported Monday.
The index was at the lowest level since May 2020 and the current situation index dropped sharply to -35.5 from -26.5 in September.
Swiss Jobless Rate Stable
The Swiss franc held at 99.98 U.S. cents and the Canadian dollar inched up 0.1% to $1.373.
The jobless rate declined marginally in September, according to the latest data released by the State Secretariat for the Economic Affairs.
The unadjusted Swiss unemployment rate fell to 1.9% in September from 2.0% in August and dropped from 2.6% a year ago.
The seasonally adjusted jobless rate was unchanged at 2.1% in September from the previous month.
Asian Markets Down on Rate Path Worries
Benchmark indexes in Asia closed down on the worries that the higher rates will fuel further rise in the U.S. dollar and stoke worldwide inflation.
The Nikkei 225 index declined 0.7% to 27,116.11, the Hang Seng Index plunged 2.9% to 17,216.66 and the the Sensex index decreased 0.3% to 57,991.11.
The Indian rupee edged down to a new record low of 82.31 and the Japanese yen to a new 24-year low of 145.75.
Then Korean won and Australian dollar also declined as the U.S. dollar continued its rise against major worldwide currencies.
South Korea's current account turned to a deficit of $3.05 billion in August from the downwardly revised $0.79 billion, the Bank of Korea said Monday.
The goods account turned to a deficit of $4.45 billion from $6.03 billion a year ago.
Stocks Slide Ahead of Earnings Season Kick-off
Barry Adams
10 Oct, 2022
New York City
Stocks struggled ahead of the busy week of economic data and the kickoff of the earnings season.
The dollar advanced for the fourth day in a row dragging major currencies around the world to multi-decade lows.
Tech stocks led the decliners in trading on Wall Street on the worries that the Fed will continue its aggressive rate hike plan, even if the economy dips to a recession and the labor market loses steam.
The S&P 500 index fell 0.8% to 3,610.89 and the Nasdaq Composite declined 1.3% to 10,510.83.
The Nasdaq is trading near a two-year low as chipmakers dive after President Biden's administration imposed more controls on the export of technology and equipment to China.
Banks and financial services are in focus ahead of the start of the earnings season with Morgan Stanley, Goldman Sachs, JP Morgan Chase and Citigroup are scheduled to report this week.
Crude oil edged down 25 cents to $92.38 and natural gas dropped 7 cents to $6.66 a thermal unit.
In Friday's trading, the yield on 2-year Treasury notes rose to 4.31%, 10-year Treasury notes jumped to 3.89% and 30-year bonds inched up to 3.84%.
The U.S. bond market was closed on Monday for Columbus Day holiday.
European markets lacked direction in early trading and turned weaker after the indexes in New York opened lower.
The DAX index inched up 0.3% to 12,311.18, the CAC-40 index fell 0.1% to 5,860.04 and the FTSE 100 index fell 0.3% to 6,969.27.
The euro declined 0.4% to 96.98 U.S. cents and the British pound eased 0.43% to $1.104.
The Swiss franc held at 99.98 U.S. cents and the Canadian dollar inched up 0.1% to $1.373.
The bond yields continued to rise across Europe on the worries that central banks are not likely to slow down aggressive rate hike campaigns.
The yield on 10-year German bonds rose to 2.32%, British Gilt advanced to 4.458% and Italian bonds increased to 4.61%.
Benchmark indexes in Asia closed down on the worries that the higher rates will fuel further rise in the U.S. dollar and stoke worldwide inflation.
The Nikkei 225 index declined 0.7% to 27,116.11, the Hang Seng Index plunged 2.9% to 17,216.66 and the the Sensex index decreased 0.3% to 57,991.11.
The Indian rupee edged down to a new record low of 82.31 and the Japanese yen to a new 24-year low of 145.75.
Then Korean won and Australian dollar also declined as the U.S. dollar continued its rise against major worldwide currencies.
South Korea's current account turned to a deficit of $3.05 billion in August from the downwardly revised $0.79 billion, the Bank of Korea said Monday.
The goods account turned to a deficit of $4.45 billion from $6.03 billion a year ago.
Major Averages Trim Weekly Advance, Strong Dollar Fuels Global Inflation
Barry Adams
07 Oct, 2022
New York City
Benchmark indexes struggled on Wall Street and trimmed week's gain after September's jobs report raised fears of a large-sized rate hike at the next Fed meeting.
The good news on the economy meant bad news for Wall Street as investors focused on the Fed action.
Traders on Wall Street focused on the decline in unemployment rate and worried that tight labor market conditions may force the Fed's policymakers to continue aggressive interest rate hikes.
Popular indexes opened lower and drifted steadily downward until the final thirty minutes of trading and recouped some of the losses.
Bond yields jumped in the early hours of trading and stayed elevated with 2-year Treasury notes crossing 4.3%, a 14-year peak.
The yield on 2-year notes increased to 4.316%, 10-year notes advanced to 3.881% and 30-year bonds rose to 3.84%.
The S&P 500 index declined 2.8% to 3,639.66 and the Nasdaq Composite index dropped 3.8% to 10,652.40.
For the week, the S&P 500 added 1.5% and the Nasdaq Composite inched up 0.8%.
For the year 2022, the S&P 500 index is down 24.1% and the Nasdaq Composite is lower a whopping 32.7%.
Crude oil increased $4.55 to $93.05 a barrel and natural gas fell 31 cents to $6.67 a thermal unit.
September Payrolls Rise 263,000
The U.S. economy added 250,000 jobs in September, lower than unrevised 315,000 in August, the U.S. Bureau of Labor Statistics reported Friday.
The shrinking pool of available workers also dragged down the unemployment rate to 3.5% from 3.7% in August, the Labor Department said.
Average monthly jobs added in 2022 edged down to 420,000, lower than 562,000 in 2021.
Before the release of the September month data, net new job additions averaged 439,000 in the first eight months of 2022, reflecting labor market strength and tight job market conditions.
With the September month job addition, the U.S. labor market is now about 500,000 larger than the pre-pandemic level.
Average hourly earnings increased 0.3% from the previous month and 5% from a year ago.
U.S. Movers: Ambac, AMD, Credit Suisse, Levi's, Tilray
Tech stocks led the decliners and the energy complex led the gainers.
Apple Inc, Amazon.com, Inc, Meta Platforms Inc, Alphabet Inc and Netflix Inc plunged between 4% and 6%.
Exxon Mobil, Chevron, Hess Corp and Schlumberger trade higher but reversed earlier gains to losses in the afternoon trading.
Crude oil increased $3.45 to $92.35 a barrel and natural gas fell 10 cents to $6.87 a thermal unit.
Advanced Micro Devices, Inc declined 11.3% to $60.27 after the chipmaker lowered its sales forecast on a weaker-than-expected personal computer market.
Ambac Financial Group soared 15.5% to $14.75 after the municipal bond insurer agreed to a settlement with Bank of America for $1.8 billion linked to the insurance issued to the bank's subsidiary Countrywide Financial prior to its acquisition in 2008.
Credit Suisse soared 13.8% to $4.88 after the financial service company said it plans to buy back $3 billion of its senior debt.
Levi Strauss dropped 9.8% to $14.37 after the apparel maker lowered its full-year sales and earnings outlook.
Tilray Inc plunged 18.8% to $3.17 after the cannabis company reported larger-than-expected loss and revenue missed analysts' estimate.
Cannabis-related stocks surged in Thursday's trading after President Joe Biden announced grand pardon for those convicted of federal charges linked to marijuana possession.
President Biden also ordered reviewing how marijuana is classified under federal drug laws.
Aurora Cannabis, Canopy Growth Corp and Cronos Group plunged between 15% and 25%.
European Markets Trim Weekly Gains
European markets struggled in the morning trading and turned sharply lower after the U.S. economy added higher-than-expected jobs in September lifting rate hike worries.
Benchmark indexes in Europe opened lower after weak economic reports from Germany and the U.K. and the sentiment weakened after the euro, the Swiss franc and the British pound eased.
The DAX index fell 1.6% to 12,732.0, the CAC-40 index dropped 1.1% to 5,866.94 and the FTSE 100 index was nearly flat at 6,991.0.
For the week, the DAX, the CAC-40 and the FTSE 100 indexes gained 1.3%, 1.5% and 1.2% respectively.
The euro edged down to 97.62 U.S. cents and the British pounds declined to $1.109.
The dollar also advanced against the Swiss franc to 99.31 U.S. cents.
Brent crude oil jumped 3.2% to $97.25 a barrel and closed up 14.6% in the week, the best weekly gain since March.
German Output and Retail Sales Drop
German industrial output declined 0.8% in August after staying flat in July, Destatis reported Friday.
Retail sales also fell 1.3% in August from the previous month and fell 4.3% from a year ago.
In nominal terms, not adjusted for inflation, retail sales in August rose 0.1% from the previous month and increased 5.4% from a year ago.
The difference between real and nominal sales data reflects the scale of price increase.
The impact of inflation was also visible in imports and exports prices released by the Federal Statistics Office.
German Import and Export Prices Surge
Import prices surged 32.7% in August from a year ago and increased 4.3% from a year ago.
Export prices jumped 18.6% in August from a year ago and gained 2.1% from the previous month.
A private report also underscored the raging inflation in U.K. home prices.
Home prices surged at a slower pace of 9.9% in August after 11.1% in July, the Lloyds Bank subsidiary Halifax reported Friday.
Mortgage rates for two-year and five-year fixed-rates inched up above 6%, 14-year highs on the worries that the U.S. rate hikes are likely to push U.K. rates higher.
Europe Movers: Adidas, J.D. Wetherspoon, Superdry
Adidas AG dropped 5.2% to
Movers: Ambac, AMD, Credit Suisse, Levi's, Tilray
Scott Peters
07 Oct, 2022
New York City
Stocks on Wall Street dropped sharply after the latest jobs report provided another signal for the Fed to continue its rate hike campaign.
The good news on the economy meant bad news for Wall Street as investors focused on the Fed action.
The S&P 500 index declined 2.4% to 3,56.23 and the Nasdaq Composite index dropped 3.3% to 10,706.89.
Tech stocks led the decliners and the energy complex led the gainers.
Apple Inc, Amazon.com, Inc, Meta Platforms Inc, Alphabet Inc and Netflix Inc plunged between 4% and 6%.
Exxon Mobil, Chevron, Hess Corp and Schlumberger trade higher but reversed earlier gains to losses in the afternoon trading.
Crude oil increased $3.45 to $92.35 a barrel and natural gas fell 10 cents to $6.87 a thermal unit.
Advanced Micro Devices, Inc declined 11.3% to $60.27 after the chipmaker lowered its sales forecast on a weaker-than-expected personal computer market.
Ambac Financial Group soared 15.5% to $14.75 after the municipal bond insurer agreed to a settlement with Bank of America for $1.8 billion linked to the insurance issued to the bank's subsidiary Countrywide Financial prior to its acquisition in 2008.
Credit Suisse soared 13.8% to $4.88 after the financial service company said it plans to buy back $3 billion of its senior debt.
Levi Strauss dropped 9.8% to $14.37 after the apparel maker lowered its full-year sales and earnings outlook.
Tilray Inc plunged 18.8% to $3.17 after the cannabis company reported larger-than-expected loss and revenue missed analysts' estimate.
Cannabis-related stocks surged in Thursday's trading after President Joe Biden announced grand pardon for those convicted of federal charges linked to marijuana possession.
President Biden also ordered reviewing how marijuana is classified under federal drug laws.
Aurora Cannabis, Canopy Growth Corp and Cronos Group plunged between 15% and 25%.
Europe Movers: Adidas, Credit Suisse, JD Wetherspoon, Superdry
Bridgette Randall
07 Oct, 2022
Frankfurt
Adidas AG dropped 5.2% to
European Markets Trim Weekly Rise, Euro and Pound Trend Lower
Bridgette Randall
07 Oct, 2022
New York City
European markets struggled in the morning trading and turned sharply lower after the U.S. economy added higher-than-expected jobs in September lifting rate hike worries.
Benchmark indexes in Europe opened lower after weak economic reports from Germany and the U.K. and the sentiment weakened after the euro, the Swiss franc and the British pound eased.
The U.S. economy added 263,000 net new jobs in September, the U.S. Bureau of Labor Statistics reported Friday.
The monthly new job additions declined from 315,000 in August but still highlighted tight labor market conditions and also underscored the tough job ahead for the Fed in cooling the U.S. economy.
The U.S. labor market is now 500,000 larger than pre-pandemic 2020, recovering nearly 22 million jobs lost at the onset of pandemic in 2020.
The S&P 500 and the Nasdaq Composite plunged more than 3% and dragged indexes worldwide on the worries that the Fed will continue its large-sized rate hike, supporting the advance in the dollar.
The DAX index fell 1.6% to 12,732.0, the CAC-40 index dropped 1.1% to 5,866.94 and the FTSE 100 index was nearly flat at 6,991.0.
For the week, the DAX, the CAC-40 and the FTSE 100 indexes gained 1.3%, 1.5% and 1.2% respectively.
The euro edged down to 97.62 U.S. cents and the British pounds declined to $1.109.
The dollar also advanced against the Swiss franc to 99.31 U.S. cents.
Brent crude oil jumped 3.2% to $97.25 a barrel and closed up 14.6% in the week, the best weekly gain since March.
German Output and Retail Sales Drop
German industrial output declined 0.8% in August after staying flat in July, Destatis reported Friday.
Retail sales also fell 1.3% in August from the previous month and fell 4.3% from a year ago.
In nominal terms, not adjusted for inflation, retail sales in August rose 0.1% from the previous month and increased 5.4% from a year ago.
The difference between real and nominal sales data reflects the scale of price increase.
The impact of inflation was also visible in imports and exports prices released by the Federal Statistics Office.
German Import and Export Prices Surge
Import prices surged 32.7% in August from a year ago and increased 4.3% from a year ago.
Export prices jumped 18.6% in August from a year ago and gained 2.1% from the previous month.
A private report also underscored the raging inflation in U.K. home prices.
Home prices surged at a slower pace of 9.9% in August after 11.1% in July, the Lloyds Bank subsidiary Halifax reported Friday.
Mortgage rates for two-year and five-year fixed-rates inched up above 6%, 14-year highs on the worries that the U.S. rate hikes are likely to push U.K. rates higher.
Adidas AG dropped 5.2% to
S&P 500, Nasdaq Plunge 3% On Rate Path Worries After Jobs Report
Barry Adams
07 Oct, 2022
New York City
Stocks on Wall Street dropped sharply after the latest jobs report provided another signal for the Fed to continue its rate hike campaign.
The good news on the economy meant bad news for Wall Street as investors focused on the Fed action.
September Payrolls Rise 263,000
The U.S. economy added 250,000 jobs in September, lower than unrevised 315,000 in August, the U.S. Bureau of Labor Statistics reported Friday.
The shrinking pool of available workers also dragged down the unemployment rate to 3.5% from 3.7% in August, the Labor Department said.
Average monthly jobs added in 2022 edged down to 420,000, lower than 562,000 in 2021.
Before the release of the September month data, net new job additions averaged 439,000 in the first eight months of 2022, reflecting labor market strength and tight job market conditions.
With the September month job addition, the U.S. labor market is now about 500,000 larger than the pre-pandemic level.
Average hourly earnings increased 0.3% from the previous month and 5% from a year ago.
The yield on 2-year notes increased to 4.30%, 10-year notes advanced to 3.861% and 30-year bonds rose to 3.81%.
The S&P 500 index declined 2.4% to 3,56.23 and the Nasdaq Composite index dropped 3.3% to 10,706.89.
Tech stocks led the decliners and the energy complex led the gainers.
Crude oil increased $3.45 to $92.35 a barrel and natural gas fell 10 cents to $6.87 a thermal unit.
Levi Strauss dropped 9.8% to $14.37 after the apparel maker lowered its full-year sales and earnings outlook.
Advanced Micro Devices, Inc declined 11.3% to $60.27 after the chipmaker lowered its sales forecast on a weaker-than-expected personal computer market.
European Stocks and Currencies Turn Lower
European markets dropped sharply after the release of the U.S. jobs report in mid-day trading.
The DAX index fell 1.6% to 12,732.0, the CAC-40 index dropped 1.1% to 5,866.94 and the FTSE 100 index was nearly flat at 6,991.0.
The dollar advanced against all major currencies after the release of the jobs report on the expectations of higher interest rates.
The euro edged down to 97.62 U.S. cents and the British pounds declined to $1.109.
The dollar also advanced against the Swiss franc to 99.31 U.S. cents.
U.S. Payrolls Expand 263,000 In September
Brian Turner
07 Oct, 2022
New York City
The U.S. economy added 250,000 jobs in September, lower than unrevised 315,000 in August, the U.S. Bureau of Labor Statistics reported Friday.
The monthly non-farm payrolls increased slowest since April 2021.
The Leisure and hospitality sector added 83,000 jobs and the healthcare sector increased 75,400 jobs.
The Professional business services sector added 43,000 jobs and the manufacturing sector expanded by 22,000 jobs.
Construction added 19,000 net new jobs and wholesale trade added 11,000 in September.
However, financial services and transportation and warehouse lost about 8,000 jobs each in the month.
The shrinking pool of available workers also dragged down the unemployment rate to 3.5% from 3.7% in August, the Labor Department said.
Average monthly jobs added in 2022 edged down to 420,000, lower than 562,000 in 2021.
Before the release of the September month data, net new job additions averaged 439,000 in the first eight months of 2022, reflecting labor market strength and tight job market conditions.
With the September month job addition, the U.S. labor market is now about 500,000 larger than the pre-pandemic level.
Average hourly earnings increased 0.3% from the previous month and 5% from a year ago.
Bond Yields Inch Near 14-Year Peak Ahead of Jobs Report
Barry Adams
06 Oct, 2022
New York City
Stocks on Wall Street lacked direction and bond yields rose ahead of the non-farm payrolls report Friday.
The bond yields rose in advance on the worries that the jobs report is likely to indicate labor market strength, providing one more signal to the Fed to stay the course on its rate hike campaign.
The 10-year U.S. Treasury bond yield jumped to 3.8%, inching closer to 14-year high seen in September, as investors worry that the Fed may keep raising rates despite easing of price pressures and cooling of job market.
The service sector and private sector reports Wednesday showed the healthy economic activities and strong labor market, fading the prospect of the Fed pivot to slower and smaller rate hikes.
Initial jobless claims rose 29,000 to 219,000 for the week ended on October 1, the U.S. Department of Labor reported Thursday.
Investors are keenly awaiting the monthly jobs report Friday and economists are expecting at least 270,000 net new non-farm jobs addition in September.
The S&P 500 index declined 1.02% to 3,744.52 and the Nasdaq Composite index dropped 0.7% to 11,073.31.
Oil prices traded near a 3-week high after OPEC and allies announced a production cut of two million barrels a day on Thursday.
Crude oil increased $1.04 to $88.85 a barrel and natural gas edged down 2 cents to $7.05 a thermal unit.
The yield on 2-year notes inched up to 4.26%, 10-year Treasury notes increased to 3.83% and 30-year bonds edged down to 3.79%.
European Markets Fall On Weak Retail Sales
European markets traded lower after inflation jitters and rate hike worries resurfaced.
European markets traded sideways in the morning trading but turned lower following the weakness in New York.
Indexes closed near their lows as investors focused on the UK debt rating cut and retail sales fell in the eurozone and Germany factory orders also declined.
Bond yield also rose ahead of the U.S. jobs report Friday and investors are anticipating at least 270,000 net new job additions in September.
The yield on 10-year German bonds rose to 2.1%, U.K. Gilts increased to 4.19%, French bonds edged up to 2.69% and Italian bonds inched higher to 4.519%.
The DAX index fell 0.1% to 12,470.78, the CAC-40 index dropped 0.8% to 5,936.42 and the FTSE 100 index dropped 0.80% to 6,997.27.
The euro inched lower to 98.38 U.S. cents and the British pound declined to $1.124.
Crude oil traded down despite yesterday's production cuts announced by the OPEC and allied nations.
Brent crude oil gained 40 cents to $93.75 a barrel and natural gas futures fell 2% to 170.33 euros a megawatts an hour.
Stock Movers
Shell PLC fell 3.2% to 26.31 after the energy giant said its natural trading and refining division is facing difficult times.
Skanska AB gained 2.9% to 141.35 Swedish kroner after the company signed a deal with Metropolitan Transport Authority of New York to replace ageing escalators.
Credit Suisse AG increased 2.6% to 4.22 Swiss francs after JP Morgan upgraded the stock to "neutral" from "underweight."
Imperial Brands gained 2.4% to 1,941.88 pence after the tobacco and cigarette company said fiscal 2022 performance is in-line with company's expectations.
The company also announced a stock repurchase plan of one billion pounds.
Halma Plc gained 0.7% to 2,156.78 pence after the company said it has agreed to acquire Weetech Holding GmbH for
U.S. Trade Deficit Eased In September
Brian Turner
05 Oct, 2022
New York City
The trade deficit in August declined to $67.4 billion, the lowest since May 2021, the Bureau of Economic Analysis reported Wednesday.
The goods deficit declined $3.4 billion to $87.6 billion and the services surplus narrowed by $0.4 billion to $20.2 billion.
Imports in August fell 1.1% to $326.3 billion driven by the fall in imports of oil and fuel and computer parts.
Exports declined 0.3% to $258.9 billion. driven by a decline in oil related products and travel services and non-monetary gold shipment.
Europe Movers: Ferrexpo, Halma, Imperial Brands, Johnson Matthey, Merck, Shell, Skanska, Zalando
Bridgette Randall
06 Oct, 2022
Frankfurt
European markets traded lower after inflation jitters and rate hike worries resurfaced.
European markets traded sideways in the morning trading but turned lower following the market weakness in New York.
Indexes closed near their lows as investors focused on the UK debt rating cut and retail sales fell in the eurozone and Germany factory orders also declined.
Bond yield also rose ahead of the U.S. jobs report Friday and investors are anticipating at least 270,000 net new job additions in September.
The yield on 10-year German bonds rose to 2.1%, U.K. Gilts increased to 4.19%, French bonds edged up to 2.69% and Italian bonds inched higher to 4.519%.
The DAX index fell 0.1% to 12,470.78, the CAC-40 index dropped 0.8% to 5,936.42 and the FTSE 100 index dropped 0.80% to 6,997.27.
The euro inched lower to 98.38 U.S. cents and the British pound declined to $1.124.
Crude oil traded down despite yesterday's production cuts announced by the OPEC and allied nations.
Brent crude oil gained 40 cents to $93.75 a barrel and natural gas futures fell 2% to 170.33 euros a megawatts an hour.
Stock Movers
Credit Suisse AG increased 2.6% to 4.22 Swiss francs after JP Morgan upgraded the stock to "neutral" from "underweight."
Ferrexpo Plc declined 3.9% to 126.70 pence after the Ukraine based high-grade iron ore pellets miner and maker reported lower production in the third quarter.
Total iron ore pellets production declined 68% to 0.8 million tons and the company blamed the current production shortfall on Russia's invasion of Ukraine.
Iron ore pellets sales dropped 65% from a year ago to 1.0 million tons in the third quarter, reflecting logistics constraints and the draw down on existing stockpiles in Ukraine.
Halma Plc gained 0.7% to 2,156.78 pence after the company said it has agreed to acquire Weetech Holding GmbH for
Europe Stocks Fall on Weak Retail Sales, UK Debt Rating Cut
Bridgette Randall
06 Oct, 2022
Frankfurt
European markets traded lower after inflation jitters and rate hike worries resurfaced.
European markets traded sideways in the morning trading but turned lower following the weakness in New York.
Indexes closed near their lows as investors focused on the UK debt rating cut and retail sales fell in the eurozone and Germany factory orders also declined.
Bond yield also rose ahead of the U.S. jobs report Friday and investors are anticipating at least 270,000 net new job additions in September.
The yield on 10-year German bonds rose to 2.1%, U.K. Gilts increased to 4.19%, French bonds edged up to 2.69% and Italian bonds inched higher to 4.519%.
The DAX index fell 0.1% to 12,470.78, the CAC-40 index dropped 0.8% to 5,936.42 and the FTSE 100 index dropped 0.80% to 6,997.27.
The euro inched lower to 98.38 U.S. cents and the British pound declined to $1.124.
Crude oil traded down despite yesterday's production cuts announced by the OPEC and allied nations.
Brent crude oil gained 40 cents to $93.75 a barrel and natural gas futures fell 2% to 170.33 euros a megawatts an hour.
Stock Movers
Shell PLC fell 3.2% to 26.31 after the energy giant said its natural trading and refining division is facing difficult times.
Skanska AB gained 2.9% to 141.35 Swedish kroner after the company signed a deal with Metropolitan Transport Authority of New York to replace ageing escalators.
Credit Suisse AG increased 2.6% to 4.22 Swiss francs after JP Morgan upgraded the stock to "neutral" from "underweight."
Imperial Brands gained 2.4% to 1,941.88 pence after the tobacco and cigarette company said fiscal 2022 performance is in-line with company's expectations.
The company also announced a stock repurchase plan of one billion pounds.
Halma Plc gained 0.7% to 2,156.78 pence after the company said it has agreed to acquire Weetech Holding GmbH for
Stocks Waver Ahead of Friday's Jobs Report, Yields Rise
Barry Adams
06 Oct, 2022
New York City
Stocks on Wall Street opened lower after two-day rally in the beginning of the week faded ahead of jobs report Friday.
The service sector and private sector reports Wednesday showed the healthy economic activities and strong labor market, fading the prospect of the Fed pivot to slower and smaller rate hikes.
Initial jobless claims rose 29,000 to 219,000 for the week ended on October 1.
Investors are keenly awaiting the monthly jobs report Friday and economists are expecting at least 270,000 net new non-farm jobs addition in September.
Crude oil declined 44 cents to $87.32 a barrel and natural gas inched up 11 cents to $7.04 a thermal unit.
The yield on 2-year notes inched up to 4.17%, 10-year Treasury notes increased to 3.77% and 30-year bonds edged down to 3.76%.
UK Debt Rating Cut
Fitch Ratings cut the U.K. government debt outlook to negative from stable, after the newly appointed government proposed unfunded large tax cuts and energy subsidies lifting the prospect of a significant jump in deficit over a medium term.
Eurozone Retail Sales Fall
Eurozone retail sales declined 0.3%in September from the previous month and dropped 2% from a year ago, Eurostat said in a report Thursday.
German Factory Orders Drop
German factory orders declined 2.4% in August from the previous month after 1.9% rise in July, Destatis said Thursday.
Orders dropped 4.1% from a year ago after a plunge of 11.0% in July.
European Markets Turn Lower
European markets traded lower after inflation jitters and rate hike worries resurfaced.
The DAX index fell 0.1% to 12,501.62, the CAC-40 index dropped 0.5% to 5,952.79 and the FTSE 100 index dropped 1.03% to 6,980.72.
The euro inched lower to 98.38 U.S. cents and the British pound declined to $1.124.