Stocks - S&P Slips on Mixed Jobs Report, Fresh Coronavirus Worries
Investing.com
Published Feb 07, 2020 01:37PM ET
By Yasin Ebrahim
Investing.com – The S&P fell Friday as the mixed U.S. jobs report showing higher job gains, but slowing wage growth, did little to lift sentiment.
The S&P 500 fell 0.41%, Nasdaq Composite slipped 0.34% and the Dow Jones Industrial Average 0.80%.
The U.S. created 225,000 jobs last month, well above economists' forecast of 160,000, but the unemployment rate unexpectedly rose and the sluggish pace of wage growth continued.
The mixed jobs report failed to lift investor sentiment on stocks, which had started the day on the back foot amid fresh worries about the coronavirus' impact on China's economy and caution after a very sharp rally during the week.
For days, traders had been betting that central banks, including the Federal Reserve, stand ready to cushion any fallout from China's economy as the spread of the virus continues.
But some on Wall Street appear less optimistic.
"The new coronavirus outbreak abroad has created some new risks to the near-term external growth backdrop, but there is little apparent reason for monetary policymakers to consider rate cuts at the moment, and we continue to expect the Fed to sit on the sidelines through 2020," RBC said in a note.
Stocks sensitive to a fall in global growth fell sharply, with Caterpillar down more than 2% for the day.
Energy also proved a big drag on the broader market as oil prices turned negative, with traders weighing up the potential impact on global oil demand from the virus against a possible decision by OPEC and Russia to make additional production cuts.
Bedding company Casper Sleep (NYSE:CSPR) gave back its gains from the previous day, when it rose sharply following its IPO. SHares were down 14%.
Uber Technologies Inc (NYSE:UBER), meanwhile, bucked the trend lower, rising 10% after the company said it expected to turn out a profit earlier than expected. The positive outlook arrived just after the company reported quarterly results that topped Wall Street estimates.
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