Major indexes drop on U.S. jobs miss

“U.S. stocks opened sharply lower Friday as Wall Street digested a weaker-than-expected jobs report,” Evelyn Cheng reports for CNBC. “The Dow Jones industrial average briefly fell more than 250 points in the open, with Goldman Sachs the greatest weight on the index.”

“The Nasdaq composite lost more than 1 percent, with Apple off 1 percent and the iShares Nasdaq Biotechnology ETF (IBB) down more than 2 percent,” Cheng reports. “The S&P 500 fell more than 1 percent to below the psychologically key level of 1,900 with financials leading nine sectors lower and utilities the only advancer. ‘We’re not getting any clarity from this jobs report. More uncertainty. And the uncertainty makes people unwilling to hold anything,’ said JJ Kinahan, chief strategist at TD Ameritrade. ‘This is one more thing that puts the Fed into a tight spot,’ he said.”

“The U.S. economy created 142,000 jobs in September, a number far below the expected 203,000 and could cool expectations that the Federal Reserve will start raising interest rates soon. August and July figures were also revised lower [136,000 new jobs were created in August instead of 173,000; July’s gain was cut to 223,000 from 245,000],” Cheng reports. “Unemployment held at 5.1 percent, according to the Labor Department. The participation rate plunged to 62.4 percent.”

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“Many economists look beyond the ‘main’ unemployment rate to other figures that can give a more textured view of the economy. On jobs day, the Bureau of Labor Statistics puts out a slew of data that show various aspects of the nation’s employment situation,” Nicholas Wells reports for CNBC.

“One of those pieces of data is the U-6 rate. The BLS defines U-6 as “total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force,” plus all marginally attached workers,” Wells reports. “In other words, the unemployed, the underemployed and the discourages.”

Jeffry Bartash reports for MarketWatch, “The labor-force participation rate slid to 62.4% from 62.6%, as 350,000 people dropped out of the labor force. That’s the lowest level since October 1977.”

“Among the few bright spots in the September employment report, an alternative measure of unemployment known as the U6 rate fell to 10%,” Bartash reports. “For the first time since the recession ended, the number of people who fall into that group fell below 16 million.”

Read more in the full article here.

“The instant reaction to the jobs report for September could be summed up in one word: ‘ugly,'” Steve Goldstein reports for MarketWatch.

The September report was a complete whiff. It eliminates any hope the Fed will raise rates at its next meeting. But more important it reinforces the ugly reality that this recovery has never gained momentum and likely will not without a change in economic policies. — Douglas Holtz-Eakin, American Action Forum.

Read more in the full article here.

MacDailyNews Take: Oh, goody, more malaise.

9 Comments

      1. i agree & absolutely correct, i was referring to the fiddle by the ANALyst and their cheapening of apple stock shares news on MDN that i was against, the Stock and share ANALyst doom and gloom news are irrelevant in MDN

    1. The labor-force participation rate slid to 62.4% from 62.6%, as 350,000 people dropped out of the labor force. That’s the lowest level since October 1977.

      Who was U.S. president in 1977? I’ll wait while you look it up and get a clue.

      “Why would we ever want to return to where we were?” Well, stupidly, 52.9% in 2008 and 51.1% in 2012 did with Obama. Don’t make the same mistake again.

      1. Take a look at this chart. If you can bear to. I’ll summarize for you.
        When republicans have controlled the federal government, GDP grew by an average 1.2% per year. When government was divided, GDP grew by 2.3% per year. And when democrats controlled the federal government, GDP grew on average by 5.2% per year.

        Don’t you hate it when facts get in the way of rhetoric? But you’re republican, so probably not. Vociferous republicans tend to just ignore facts.

        http://politicsthatwork.com/graphs/gdp-growth-by-party

        Or try this chart: http://politicsthatwork.com/graphs/unemployment-rate-by-president
        Again, I’ll summarize. In the most recent 29 years the President was a republican, unemployment climbed a little over 8%. In the most recent 29 years the President was a democrat, unemployment fell by nearly 12%.

        Now, what was your point again??

        1. Nathan Salminen (is a lawyer and an amateur economic and political researcher. Nathan has been politically active for many years, including working for the Senate Committee on the Judiciary as a law clerk. Nathan currently practices law in New York and runs Politics that work.)

          I always get my info from a amateur economic and political researcher from New York! And a lawyer, no less!!

          Would love to see his voting history for last 20 years. You know for impartiality sake.

  1. The world-wide economic situation is not Apple’ fault. Nor is the economic disinformation in the USSA. Over 94,610,000 (and climbing) out of work in the USSA. Don’t blame Apple.

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