New York Stocks Slightly Higher After Disappointing US Jobs Report
Stock markets in New York opened Friday with small gains. Investors on Wall Street mainly focus on the US government jobs report, which came in much weaker than expected.
Developments in the labour market play an important role in the Federal Reserve’s monetary policy, the umbrella organization of central banks in the United States.
According to the Ministry of Labor, employment increased by 194,000 in September. Economists had expected average growth of 500,000 new jobs in the world’s largest economy. However, the August figure was revised upwards.
The Fed has announced that it plans to begin phasing out its monthly bond-buying program this year. But this disappointing job figure could make that decision more difficult. Fed Chair Jerome Powell has said a “reasonably good” jobs report needs to be released by September to begin phasing out coronavirus relief before the end of this year.
Shortly after opening, the Dow-Jones index recorded a plus of 0.1 percent at 34,796 points. The broad-based S&P 500 rose 0.1 percent to 4404 points, and the technology gauge Nasdaq climbed 0.2 percent to 14,680 points.
Tesla was in the spotlight with a minus of 0.8 percent. CEO Elon Musk said at the annual shareholders’ meeting that the electric car maker’s headquarters would be moving from California to Texas. Musk also pointed to ongoing computer chip shortages hitting the auto industry. Tesla also plans to increase production at its California and Nevada plants.
Biotechnologist Allogeneic Therapeutics plunged more than 41 percent. The FDA has suspended the testing of the company’s cancer drug after complications in a patient.
Oatly maker of oat milk was pushed up nearly 6 percent after an advice raise by JPMorgan Chase. However, the share price of Oatly has fallen sharply since a peak in June, and that gives investors a chance to step in, according to the investment bank.