Slowing job growth, stimulus worries weigh on Nasdaq

Provided by CNBC

However, Democrats and Trump's top aides have so far failed to make substantial progress, with differences partly centred around continuing an extra US$600-per-week (RM2,515) in unemployment benefits.

Prices for the 10-Year Treasury fell, raising yields to 0.56% from Thursday's 0.54%.

Major equity indexes in the United States started the last day of the week in the negative territory despite the upbeat jobs report as investors remain focused on political headlines.

At 6:49 a.m. ET, Dow e-minis 1YMcv1 were down 120 points, or 0.44%, S&P 500 e-minis were down 14.5 points, or 0.43% and Nasdaq 100 e-minis were down 51.25 points, or 0.46%.

Investors are looking ahead to Friday's jobs report, which will offer the most comprehensive view of the extent that the spike in United States coronavirus cases weighed on hiring. Moreover, the Unemployment Rate fell to 10.2% and came in better than the market expectation of 10.5%.

Underlining the disconnect between USA economic health and a stimulus-led rally on Wall Street, the Nasdaq closed Thursday above 11,000 for the first time as traders counted on Congress to agree on another coronavirus relief package. On the other hand, the defensive Utilities Index is clinging to small gains in the early trade.

The S&P 500 pulled back from near six-month highs today as data showed a sharp slowdown in USA employment growth and President Donald Trump cranked up friction with Beijing with moves to ban WeChat and TikTok.

President Donald Trump on Thursday issued executive orders against Chinese tech firms TikTok and WeChat, which he claimed would curb the "threat" they pose to USA national security.

In point of fact, apart from a surprise Disney quarterly profit released late on Tuesday that seemed to have pushed the Walt Disney Co.'s shares up by as much as 8.80 per cent, investors' optimism over another round of trillion-dollar pandemic stimulus package had tuned up the tone of the day's Wall St. In response, China said the companies complied with USA laws and warned Washington would have to "bear the consequences" of its action.

Microsoft Corp, which is seeking to buy TikTok's USA operations, also dropped 1.79 percent.

The corporate results season is now in its final stretch, with about 424 S&P 500 firms having reported so far.

New York-listed Tencent Music Entertainment Group, which was spun off from WeChat-owner Tencent Holdings Ltd in 2018, fell 3.3%, while Facebook Inc jumped 3.8%.

The S&P index recorded 21 new 52-week highs and no new low, while the Nasdaq recorded 133 new highs and three new lows.

US-listed Chinese stocks, such as Baidu Inc (百度), Alibaba Group Holding (阿里巴巴) and JD.com Inc (京東) also declined.

Related:

Comments


Other news