Dow falls about 200 points as trade concerns reemerge
U.S .. shares became negative late in the morning after trading the message higher at the beginning of the trade, as new jitters on trade relations overshadowed an employment report for November.
How do benchmarks work?
Dow Jones Industrial Average
DJIA, -1.84%
fell 237 points, or 1% to 24.711, the S & P 500 index
SPX, -1[ads1].88%
is down 21 points, or 0.8% to 2 674, while the Nasdaq Composite Index
COMP, -2.42%
traded 86 points, or 1.3%, lower at 7,095.
Check out: A death cross for the S & P 500 highlights a stock market in tatters
For the week, Dow, S & P 500 and Nasdaq are set to show drops of more than 3%.
Read: Dow slashed only 785 points, marking its most amazing reversal since March
On Monday morning, both the S & P 500 and Dow threatened to move into negative territory for the year while Nasdaq
The US economy added 155,000 new jobs in November, the Labor Ministry estimated Friday morning, under the expectations of 190,000 new jobs, per MarketWatch Investigation of Economists.
The Labor Report also showed that unemployment remained at 3.7%, as expected. Average hourly wage increased to 6 cents per hour from October, or 0.2%, only shy of expectations, and grew by 3.1% compared to the year, highest since 2009.
Work numbers are of particular importance to investors, as These data will inform the Federal Reserve Interest Rate Committee, FOMC, as it is preparing to decide whether the interest rate will be increased at its forthcoming meeting 18-19 December.
Signs that FOMC may take a less aggressive crash in normalizing prices has increased, with The Wall Street Journal on Thursday reporting that Fed officials are considering a new wait and see mentality at the December meeting.
Expectations for a rate hike in December show a 76.6% probability, down from 83% a week ago, according to CME Group data, with expectations that increase decision makers to cool the speed hike in 2019.
Job data comes after a frenetic session that had been stained for fear of intensifying trade fairs between the US and China. It was after the arrest in Canada by a top Chinese technician in China, telecommunications giant Huawei Technologies, which reinforced concerns in a market that is already dirty about the relationship between Beijing and Washington on tariffs and intellectual property rights.
Les: Huawei arrested creates concerns in Silicon Valley as well as abroad
These fears coupled with a sustained decline in crude oil prices has made investors particularly on the verge of fretting that global economic growth is disturbed.
What are market participants saying
"The job report stepped the needle very well," J.J. Kinahan, market democrat with TD Ameritrade, said MarketWatch, claiming that 150,000 new jobs are not too high or too low for investors.
"Had this come in really hot, the market would interpret it as a number that would force the Fed to raise prices not only in December but also in March," he said. "You would not miss a huge way down, as it would have shaken faith in the economy," he said.
Steve Chiavarone, portfolio manager at Federated Investors, told MarketWatch that while the jobs report was bullish, trade concerns will continue to weigh on the market in the short term.
On this top of his list of concerns, a recent decline in capex spending as he says "is entirely related to trade."
"Companies can not plan their global supply chains, with so much uncertainty about where the policy goes, and if you can not plan, you can not invest," said Chiavarone. This dynamics will hurt US economy, productivity growth and equity values if China and The United States can not agree on the new trade rules.
What Shares Are In Focus?
Shares of Big Lots Inc .
BIG, -23.08%
is about 22%, after a significantly better loss than the third quarter.
Shares of Broadcom Inc .
