Tech stocks pull Wall St. lower, off­set­ting jobs data bump

The Financial Daily - - MARKET SUMMARY - NEW YORK:

A drop in tech­nol­ogy stocks weighed on Wall Street on Fri­day, off­set­ting strong oil prices and a U.S. jobs re­port that was tepid enough to lower bets for faster fu­ture in­ter­est rate hikes with­out fan­ning fears of an eco­nomic slow­down.

Non­farm pay­rolls in­creased by 155,000 last month, but missed economists ex­pec­ta­tion of 200,000, a La­bor Depart­ment re­port showed. The an­nual wage rise also matched Oc­to­ber's jump, in­di­cat­ing growth was not fast enough to over­heat in­fla­tion.

The data helped stock fu­tures sharply pare losses and even sent the mar­ket higher at one point.

"At this point peo­ple are more con­cerned about the Fed­eral Re­serve. So this gives more am­mu­ni­tion for the Fed not to move and to kind of pull back," said Joe Saluzzi, co-man­ager of trad­ing at Themis Trad­ing in Chatham, New Jersey.

"It's that fine balanc­ing act that we al­ways look for, that kind of Goldilocks men­tal­ity. I think that num­ber is ac­tu­ally a good num­ber where it shows that is there is a pos­i­tive jobs num­ber, but it's not too good."

Af­ter the re­port, traders con­tin­ued to bet the Fed would raise rates a fourth time in 2018 later this month, but pared ex­pec­ta­tions slightly for the sin­gle hike next year that mar­kets have been ex­pect­ing.

Also help­ing the mar­ket was a more than 4 per­cent jump in oil prices as big Mid­dle East pro­duc­ers in OPEC agreed to re­duce out­put to drain global fuel in­ven­to­ries and sup­port the mar­ket.

The en­ergy sec­tor .SPNY jumped 2.25 per­cent - the most among the 11 ma­jor S&P sec­tors. The ma­te­ri­als in­dex .SPLRCM was up 1.02 per­cent.

But tech­nol­ogy stocks slid 1.02 per­cent, with Ap­ple Inc (AAPL.O) and Mi­crosoft Corp .MSFT.O down more than 1 per­cent and weigh­ing the most on the S&P and the Nas­daq.

At 10:14 a.m. ET, the Dow Jones In­dus­trial Av­er­age .DJI was down 45.02 points, or 0.18 per­cent, at 24,902.65, the S&P 500 .SPX was down 7.00 points, or 0.26 per­cent, at 2,688.95 and the Nas­daq Com­pos­ite .IXIC was down 47.79 points, or 0.66 per­cent, at 7,140.47.

Still, ad­vanc­ing is­sues out­num­bered de­clin­ers by a 1.87-to-1 ra­tio on the NYSE and a 1.36-to-1 ra­tio on the Nas­daq.

The S&P's 50-day mov­ing av­er­age fell be­low its 200-day mov­ing av­er­age in in­tra­day trad­ing, a phe­nom­e­non known as a "death cross" and one that stands as a bear­ish near-term sig­nal only if it holds through the close.

Broad­com Inc (AVGO.O) climbed 3.2 per­cent af­ter strong de­mand helped the chip­maker beat quar­terly revenue and profit es­ti­mates.

Al­tria Group Inc (MO.N) rose 2.1 per­cent af­ter the Marl­boro cig­a­rette maker took a $1.8 bil­lion stake in Cana­dian cannabis pro­ducer Cronos Group Inc (CRON.TO), whose U.S.-listed shares jumped 21.0 per­cent.

The S&P in­dex recorded six new 52-week highs and two new lows, while the Nas­daq recorded nine new highs and 38 new lows.

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