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Market Snapshot

https://www.briefing.com/stock-market-update

Dow 34746.25 -8.69 (-0.03%)
Nasdaq 14579.54 -74.48 (-0.51%)
SP 500 4391.34 -8.42 (-0.19%)
10-yr Note -25/32 1.614
NYSE Adv 1441 Dec 1756 Vol 713.1 mln
Nasdaq Adv 1768 Dec 2498 Vol 3.5 bln

Industry Watch
Strong: Energy, Financials
Weak: Real Estate, Utilities, Materials, Health Care

Moving the Market

-- Major indices close slightly lower as investors contemplate Fed's policy course

-- Nonfarm payrolls growth was disappointing, but private sector payrolls were closer to expectations

-- Unemployment rate dipped to 4.8% while average hourly earnings increased more than expected

-- Senate passed bill to extend debt ceiling until Dec. 3

Major indices close lower following mixed employment report
08-Oct-21 16:20 ET
Dow -8.69 at 34746.25, Nasdaq -74.48 at 14579.54, S&P -8.42 at 4391.34

[BRIEFING.COM] The S&P 500 decreased 0.2% on Friday in a tight-ranged session, as investors contemplated the Fed's policy course following the release of a mixed September employment report. The Nasdaq Composite (-0.5%) and Russell 2000 (-0.8%) underperformed, while the Dow Jones Industrial Average (-0.03%) was relatively unchanged.

Headline nonfarm payrolls growth increased by just 194,000 (Briefing.com consensus of 450,000), badly missing expectations and seemingly supporting the case for the Fed to delay its taper announcement past November. Beneath the surface, however, were numbers that painted the case for tapering sooner rather than later.

Specifically, private sector payrolls increased by 317,000 (Briefing.com consensus 385,000), the unemployment rate improved to 4.8% (Briefing.com consensus 5.1%) from 5.2% in August, and perhaps more noteworthy, average hourly earnings rose 0.6% (Briefing.com consensus 0.4%). The latter reflected lingering supply-driven inflation pressures.

Inflation concerns/expectations continued to drive oil prices ($79.40, +1.09, +1.4%) and long-term interest rates higher, which fueled the gains in the S&P 500 energy (+3.1%) and financials (+0.5%) sectors. Notably, WTI crude futures briefly topped $80 per barrel for the first time since 2014 while the 10-yr yield increased three basis points to 1.60%.

The energy sector might have risen 3%, but since it only represents a small weighting in the S&P 500, it didn't have much of a positive influence today. The other nine sectors closed lower, led by the real estate (-1.2%) and utilities (-0.7%) sectors. The heavily-weighted information technology sector decreased 0.4%

Separately, the Senate passed a bill Thursday evening to raise the debt ceiling by $480 billion until Dec. 3. This was the anticipated outcome based on the reporting from the prior two days, and the bill now heads to the House where it's expected to pass on Tuesday.

The 2-yr yield was unchanged at 0.31%, contributing to some curve-steepening activity in the Treasury market. The U.S. Dollar Index decreased 0.1% to 94.12.

Reviewing Friday's economic data:

September nonfarm payrolls increased by a disappointing (and weak) 194,000, the unemployment rate dropped to 4.8%, average hourly earnings jumped 0.6%, and the labor force participation rate dropped to 61.6%.
September nonfarm payrolls increased by 194,000 (Briefing.com consensus 450,000).
September private sector payrolls increased by 317,000 (Briefing.com consensus 385,000).
September unemployment rate was 4.8% (Briefing.com consensus 5.1%), versus 5.2% in August.
September average hourly earnings increased 0.6% (Briefing.com consensus 0.4%).
The average workweek in September was 34.8 hours (Briefing.com consensus 34.7).
Narrowing down to one takeaway: the report will feed an ongoing sense of uncertainty about the state of the labor market and the state of the Fed's policy course.
Wholesale inventories increased 1.2% in August (Briefing.com consensus 1.2%) following an unrevised 0.6% increase in July.

Looking ahead, there is no economic data scheduled for Monday while the bond market will be closed for Columbus Day.

S&P 500 +16.9% YTD
Dow Jones Industrial Average +13.5% YTD
Nasdaq Composite +13.1% YTD
Russell 2000 +13.1% YTD

Crude futures settle just below $80 per barrel
08-Oct-21 15:30 ET
Dow +65.85 at 34820.79, Nasdaq -38.03 at 14615.99, S&P +2.44 at 4402.20

[BRIEFING.COM] The S&P 500 is up 0.1% and on pace to end the week with a 1.0% gain.

One last look at the S&P 500 sectors shows energy (+3.3%) and financials (+0.7%) outperforming amid higher oil prices and higher Treasury yields. Conversely, the real estate (-0.7%), utilities (-0.3%), and materials (-0.3%) sectors underperform in negative territory.

WTI crude futures settled higher by 1.4%, or $1.09, to $79.40/bbl after briefly topping $80 per barrel earlier today.