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.