New York: US stocks traded in a narrow range in the morning session as a better-than-expected jobs report in October bolstered the case for a December rate hike by the US Federal Reserve.
By Friday noon, the Dow Jones Industrial Average lost 32.47 points, or 0.18 percent, to 17,830.96, Xinhua reported.
The S&P 500 was down 9.03 points, or 0.43 percent, to 2,090.90. The Nasdaq Composite Index rose 4.36 points, or 0.09 percent, to 5,132.10. Total nonfarm payroll employment increased by 271,000 in October, soundly beating market estimates, and the unemployment rate was unchanged at 5.0 percent, the US Labor Department said Friday.
Average hourly earnings for all employees on private nonfarm payrolls rose by nine cents to $25.20, following little change in September. “We have to conclude a rate hike is coming (on) December 16 unless remaining data releases undermine the message from today’s employment report,” said Chris Low, chief economist at FTN Financial. Chicago Fed president Charles Evans, a voting member of the Federal Open Market Committee, said on Friday that the report was “very good news” and that strong jobs growth would help push up inflation, according to the CNBC.
Fed chair Janet Yellen reiterated earlier this week that the central bank may decide to raise short-term interest rates at its December policy meeting if the US economy is “performing well.” “If the incoming information supports that expectation, then our statement indicates that December would be a live possibility,” Yellen said. US stocks closed mildly lower after wavering between small gains and losses on Thursday, as investors digested mixed economic data ahead of the jobs report.
