US: Stocks dip after poor jobs data

[NEW YORK] Wall Street stocks finished lower on Friday (Sep 5) as markets grappled with worries about the latest weak US labour market data, which was offset somewhat by expectations for US Federal Reserve monetary easing.

The US economy added just 22,000 jobs in August, while unemployment climbed to 4.3 per cent from 4.2 per cent, according to Department of Labor data.

Analysts said the data added more certainty that the Fed would cut interest rates later this month and probably again in subsequent meetings this year.

Stocks initially rose on the data, but soon tripped into the red, with the Dow Jones Industrial Average losing 0.5 per cent to 45,400.86.

The broad-based S&P 500 shed 0.3 per cent to 6,481.50, while the tech-rich Nasdaq Composite Index slipped less than 0.03 per cent to 21,700.39.

Oxford Economics moved up its projection for a Fed rate to September after previously predicting one in December.

“We don’t know how much longer this slowing of hiring is going to last,” said Art Hogan of B Riley Wealth Management.

Among individual companies, Tesla rose 3.6 per cent after announcing a new compensation package for CEO Elon Musk potentially worth more than US$1 trillion. The plan ties Musk’s pay to stratospheric growth targets.

Broadcom surged 9.4 per cent as it reported strong results and offered a positive outlook due to continued strength in artificial intelligence ventures.

But Lululemon Athletica sank 18.6 per cent on disappointment with the company’s results. Briefing.com said the results show how the company’s exposure “to the softening US consumer and to an increasingly competitive athletic wear landscape”. AFP