Mixed Jobs Report Leads Another Sell Off on Wall Street

Nichole Harper
04 Sep, 2015
New York City

Market indexes on Wall Street declined more than 1.5% as the latest jobs report did little to calm investors. August month nonfarm payrolls increased less-than-estimated 173,000 and July employment was revised higher to 245,000. Jobless rate declined to 5.1%.

[R]1:55 PM New York City, New York – Market indexes on Wall Street declined more than 1.5% as the latest jobs report did little to calm investors. August month nonfarm payrolls increased less-than-estimated 173,000 and July employment was revised higher to 245,000. Jobless rate declined to 5.1%.[/R]

Market indexes on Wall Street fell more than 1.5% after the latest mixed jobs reports did little to calm investors.

U.S. non-farm payroll employment in August rose 173,000 and the unemployment rate fell to 5.1% from July, the Department of Labor said.

The department also revised higher July employment data to 245,000 and the jobless rate declined to the lowest in seven years as wage growth increased.

On Wall Street, Tollbooth Strategy Index slipped 110.24 or 1.1% to 10,147.48.

S&P 500 index decreased 28.55 or 1.5% to 1,922.75 and the Nasdaq Composite Index dropped 44.06 or 0.9% to 4,689.27.

Crude oil in New York fell 71 cents to $46.04 a barrel and gold slid $4.80 to $1,119.70 an ounce.

U.S. Movers

Allergan Plc formerly Actavis Plc, the Ireland-based privately held pharmaceutical company agreed to acquire a private clinical stage medical device maker AqueSys, Inc. for about $300 million and the transaction is expected to close in the fourth-quarter of this year.

BlackBerry Ltd ((BBRY)) gained 1.1% or 8 cents to $7.54 after the mobile phone maker agreed to acquire the U.S.-based privately held rival Good Technology Corp, secure mobility solution provider for about $425 million.

European Markets

European markets traded lower at the opening after German industrial orders declined more than expected in July.

Markets in the euro zone rallied initially after the release of the U.S. employment data but closed down on the worries that the U.S. Fed may raise rates this month.

In London trading, FTSE 100 index slumped 134.18 or 2.2% to 6,059.92 and in Frankfurt the DAX index dropped 259.43 or 2.5% to 10,058.41.

In Paris, CAC 40 index declined 115.46 or 2.5% to 4,538.33.

For the week, FTSE 100 index dropped 2.1% and the DAX index declined 2.3% and the CAC 40 index slumped 2.9%.

888 Holdings Public Limited Company jumped 2.2% to 166 pence after the U.K.-based online gambling services provider launched its poker, casino and sport brands in Romania.

The company will launch similar services in Denmark by next week to compete with the rival GVC Holdings and Bwin.Party.

GVC Holdings Plc plunged 5.1% to 430 pence after the U.K.-based gambling company agreed to acquire Bwin.Party Digital Entertainment Plc after revising the offer to 129.64 pence per share or £1.12 billion.

The agreed offer is 24% higher than the most recent offer of 104.09 pence per share from 888 Holdings.

Bwin Party terminated its offer from 888 Holdings for £898 million.

Shares of Bwin Party declined 3.1% to 111.60 pence.

Asian Markets

Nikkei average declined more than 2% and extended weekly loss to 7% in the largest weekly drop since April 2014. The widely followed benchmark declined to a new seven-month low.

Stocks in Tokyo closed down and extended weekly loss in the Nikkei 225 Average to 7%.

Market indexes opened lower and in nervous trading export sensitive stocks sold off after the yen gained against the dollar.

Investors were wary ahead of the release of U.S. employment data and after the European Central Bank lowered its estimate of annual economic growth and inflation outlook.

The Nikkei 225 Stock Average slumped 390.23 or 2.2% to 17,792.16 and the broader Topix index dropped 30.45 or 2.1% to 1,444.53.

For the week, Nikkei 225 plunged 7%.

The yen strengthened to 119.44 against a dollar.

NGK Insulators Ltd plunged 4.6% to 2,494 yen after the company agreed to pay $65.3 million fine to the U.S. Justice Department and pleaded guilty to criminal charges for fixing the prices of parts supplied to automakers.

The department said that NGK conspired to price-fixing and bid-rigging schemes for ceramic substrate used in catalytic converters.

Stocks in Mumbai plunged and widely followed indexes dropped more than 2% after foreign investors dumped stocks in India and in emerging markets ahead of U.S. employment data release.

Foreign investors have been cutting exposure to emerging markets as the U.S Fed prepares to raise rates as early as this month.

Banks, software exporters and generic pharmaceuticals makers led the decliners.

Yes Bank, Axis Bank, ICICI Bank Ltd, State Bank of India and Kotak Mahindra declined more than 3%.

Rupee weakened 22 paisa to 66.46 against one U.S. dollar.

The Sensex Index declined 562.88 or 2.2% to close at 25,201.90. The CNX Nifty dropped 167.95 or 2.2% to 7,655.05.

For the week, Sensex Index plunged 4.5% and CNX Nifty tumbled 4.3%.

Russia-based Rosneft plans to sell 15% stake in one of its largest oil fields for $1.27 billion to ONGC.

Reserve Bank of India lifted foreign investor stake limit to 40% in Ashok Leyland.

Rajesh Exports extended latest string of jewellery exports with a new order worth $150 million from Singapore based company.