Wall Street opens slightly lower as investors digest data
- Unemployment drops to 4.1% for the first time since 2000.
- Trade deficit increases despite higher exports.
Major equity indexes in the U.S. started the last trading day of the week under a modest pressure as markets assess the latest macroeconomic data.
Today's data from the U.S. showed that following the dismal reading in September (18K), nonfarm payroll growth increased by 261,000 in October as hospitals started hiring again. Further details of the employment report revealed that the unemployment rate eased to a new 17-year low at 4.1% while average hourly earnings decreased by one cent, bringing the annual wage growth down to 2.4%.
Meanwhile, the U.S. Bureau of Economic Analysis announced that the goods and services deficit rose by $0.7 billion in September to $43.5 billion in September despite a $2.1 billion increase in exports.
At the time of writing, the Dow Jones Industrial Average was down 22 points, or 0.08%, at 23,494.09, the S&P 500 was losing 1.1 points, or 0.04%, at 2,575.75 and the Nasdaq Composite was virtually unchanged at 6,717 points.
Key headlines
- US: Total nonfarm payroll employment rose by 261,000 in October
- US: Goods and services deficit at $43.5 bln in Sep, up $0.7 bln from $42.8 bln in Aug
- Fed: Powell nomination for the next Fed Chair will not be a game changer - Rabobank
- Strong US employment, but modest wages backs "gradual" Fed hikes - ING
- US: Expect decline in the ISM non-manufacturing index to 56.0 in October - Nomura