Stocks finished lower Friday. The Dow dropped 180 points to 26447, while the S&P 500 lost 16 points to 2885. The Nasdaq Composite retreated 91 points to 7788, posting its worst week since March.
The major averages extended yesterday’s decline as the September jobs report deepened this week’s bond rout. The Labor Department reported non-farm payrolls increased by 134,000 in September, missing projections of a 185,000 gain. However, the August figure was revised upwards by 69,000 to 270,000. Meanwhile, the unemployment rate decreased to 3.7% in September, the lowest since December 1969. Average hourly earnings advanced 2.8% year-over-year and 0.3% month-over-month in September, in line with consensus estimates. An additional update revealed the U.S. trade deficit widened in August.
Ten of 11 S&P 500 sectors closed in negative territory, with Utilities the sole advancers. Technology shares led decliners as Intel dropped 2.3% to $47.03. The Communication Services group also underperformed with Netflix losing 3.4% to $351.35. In earnings, Costco fell 5.6% to $218.82 despite the wholesale club operator topping analyst revenue projections.
Breadth was negative on issues by 2:1 on both the NYSE and Nasdaq. Composite NYSE volume was more than 3.3 billion shares.
Treasuries were lower with the yield on the 10-year note up three basis point to 3.23%. The yield on the 30-year bond touched 3.42%, its highest level in four years. In commodities, WTI crude was essentially unchanged at $74.36/barrel, notching its fourth consecutive weekly gain, the longest stretch since January. COMEX gold rose 0.3% to $1201.20/ounce amid a weaker dollar.
For the week, the Dow slipped less than 0.1%, the S&P 500 declined 1.0%, and the Nasdaq Composite fell 3.2%.