Stocks inch lower following the release of the September jobs report, which showed a weaker than expected increase in non-farm payrolls with a notable upward revision to August result, while wages rose 2.8% Y/Y last month to match expectations; S&P flat, Dow -0.1%, Nasdaq -0.3%.
U.S. Treasury prices remain under pressure following the report, as the yield on the benchmark 10-year note rises another 2 bps to 3.22% and the Fed-sensitive two-year yield is up 3 bps at 2.89%
“The labor market is going to keep getting tighter and that will mean higher wages,” says Peter Cardillo, chief market economist at Spartan Capital Securities. “This is going to keep upward pressure on rates and continue to put downward pressure on stocks.”
European bourses are broadly lower, with U.K.’s FTSE -1%, Germany’s DAX -0.9% and France’s CAC -0.8%; in Asia, Japan’s Nikkei -0.6% while China’s Shanghai Composite remains closed for a holiday.
In the U.S., early sector standings show consumer discretionary (+0.4%), health care (+0.4%) and communication services (+0.3%) out in front, while materials (-0.1%) and energy (-0.1%) are the weakest performers.
U.S. WTI crude oil -0.2% at $74.19/bbl.