The S&P 500 closed lower on Friday after data showed weaker jobs growth than expected last month, yet investors still predicted the US Federal Reserve would begin tapering asset purchases this year.
Wall Street’s three main indices were mixed for much of the session before losing ground toward the end. All three posted weekly gains.
Comcast Corp tumbled after Wells Fargo & Co cut its price target on the media company, while Charter Communications Inc fell after Wells Fargo downgraded the cable operator to “underweight” from “overweight.”
Both companies were among the biggest drags on the S&P 500 and the NASDAQ.
Real estate and utilities were the poorest performers among 11 S&P 500 sector indices, down 1.1 percent and 0.7 percent respectively.
The S&P 500 energy sector index jumped 3.1 percent, with oil up more than 4 percent on the week, as a global energy crunch has boosted prices to their highest since 2014.
Chevron and Exxon Mobil rallied more than 2 percent and were among the companies giving the S&P 500 the greatest lift.
The US Department of Labor’s nonfarm payrolls report showed that the US economy last month created the fewest jobs in nine months, as hiring dropped at schools and some businesses were short of workers.
The unemployment rate fell to 4.8 percent from 5.2 percent in August, while average hourly earnings rose 0.6 percent, which was more than expected.
“I think that the Federal Reserve made it very clear that they don’t need a blockbuster jobs report to taper in November,” said Kathy Lien, managing director at BK Asset Management in New York. “I think the Fed remains on track.”
The Dow Jones Industrial Average dipped 0.03 percent to close at 34,746.25 points, while the S&P 500 lost 0.19 percent to 4,391.34. The NASDAQ Composite dropped 0.51 percent to 14,579.54.
For the week, the S&P 500 rose 0.79 percent, the Dow added 1.22 percent and the NASDAQ gained 0.09 percent.
Third-quarter reporting season begins next week, with JPMorgan Chase & Co and other big banks among the first to post results. Investors are focused on global supply chain problems and labor shortages.
Analysts on average expect S&P 500 earnings per share for the quarter to be up almost 30 percent, according to Refinitiv.
“I think it’s going to be a dicey earnings season,” said Liz Young, head of investment strategy at SoFi in New York. “If supply chain issues are driving up costs, a company with strong pricing power can pass through those rising costs, but you can’t pass through a labor shortage if you can’t find workers to hire.”
Declining issues outnumbered advancing ones on the NYSE by a 1.24-to-1 ratio; on the NASDAQ, a 1.52-to-1 ratio favored decliners.
The S&P 500 posted 26 new 52-week highs and three new lows; the NASDAQ Composite recorded 86 new highs and 113 new lows.
Volume on US exchanges was 9.2 billion shares, compared with the 11 billion average over the past 20 trading days.
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