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Dow closes near the flat line on Friday after jobs report miss, but notches winning week

The Dow was little changed on Friday, notching a winning week as optimism about a short-term debt ceiling deal trumped a disappointing jobs report.

 

The Dow Jones Industrial Average dropped 8.69 points to 34,746.25.

The S&P 500 fell about 0.2% to 4,391.34.

The technology-focused Nasdaq Composite fell 0.5% to 14,579.54.

 

The major averages all ended in the green for the week. The Dow rose 1.2% for its best week since June. The S&P 500 rose about 0.8% for its best week since August. The Nasdaq rose just shy of 0.1% since Monday.

 

There was something for both bears and bulls in Friday’s jobs report, which explains the gyrations in stocks following the release. The headline number was a major disappointment as the economy added just 194,000 jobs in September, the Labor Department reported. That was well below the Dow Jones estimate of 500,000.

 

On the positive side, the unemployment rate itself fell to a much lower point than economists forecast. At 4.8%, that’s the same level seen in late 2016. Plus, August’s jobs report was revised up to 366,000 compared to the initial read of 235,000.

 

A bleaker labor picture could stall the Federal Reserve, as it prepares to slow its $120 billion-per-month bond-buying program.

 

 

European markets close lower after volatile week; U.S. jobs report falls short; Tui slides 15%

 

 

Reference: CNBC