- Title: Wall Street ends week on down note after jobs report
- Date: 6th May 2022
- Summary: RICHMOND, VIRGINIA, UNITED STATES (MAY 6, 2022) (REUTERS) (SOUNDBITE) (English) RIVERFRONT INVESTMENT GROUP GLOBAL FIXED INCOME, CIO, KEVIN NICHOLSON SAYING: "The [jobs] report today was very strong, I thought. And the fallout has been that the markets are concerned that because we have such good job strength, that we will continue to see inflation rise and there will be further hikes. And now that the ten year is over 3%, that is really hurting equity markets because it feels as if equities realize, equity investors realize that when the ten year is yielding over 3%, that there are other opportunities for people to get income. And so I think you're starting to see equities fall for that reason. And you're seeing fixed income markets actually sell off as well. And that's because, the idea that inflation is still going to go higher." WHITE FLASH (SOUNDBITE) (English) RIVERFRONT INVESTMENT GROUP GLOBAL FIXED INCOME, CIO, KEVIN NICHOLSON SAYING: "From an investor standpoint, I am not optimistic that the Fed is doing a decent enough job to tame inflation. If they were going to actually tame inflation, they would have not said that they were going to take the 75-basis point hikes off the table. And I think that is why you're getting this negative reaction in the markets. The last couple of days, because people are are concerned that there is the potential that inflation has not peaked. And you're starting to get more information coming out, especially with today's jobs report being as strong as it was. It's saying that people are still getting employed and that means that they're going to continue to have wage pressure because the participation rate is still not as high." WHITE FLASH (SOUNDBITE) (English) RIVERFRONT INVESTMENT GROUP GLOBAL FIXED INCOME, CIO, KEVIN NICHOLSON SAYING: "They are now starting to come under pressure largely because people are returning back to work. They benefited quite a bit during the pandemic from people staying at home and people became more casual. But now that folks are now returning to the office, sportswear attire is less popular. And so I think that those companies are going to feel some pressure, kind of like, some of the stay-at-home technology companies that benefited during the pandemic are now going through."
- Embargoed: 20th May 2022 21:08
- Keywords: Kevin Nicholson NYSE closing bell jobs report market recession
- Location: NEW YORK, NEW YORK + RICHMOND, VIRGINIA, UNITED STATES
- City: NEW YORK, NEW YORK + RICHMOND, VIRGINIA, UNITED STATES
- Country: USA
- Topics: Economic Events,United States
- Reuters ID: LVA002626906052022RP1
- Aspect Ratio: 16:9
- Story Text: Wall Street ended lower on Friday (May 6) amid concerns about rising Treasury yields and the prospect of more Fed rate hikes.
The Labor Department presented stronger-than-expected jobs data with nonfarm payrolls increasing by 428,000 jobs in April, versus expectations of 391,000 job additions, underscoring the economy's strong fundamentals despite a contraction in gross domestic product in the first quarter.
The unemployment rate remained unchanged at 3.6% in the month, while average hourly earnings increased 0.3% against a forecast of a 0.4% rise.
Nine of the 11 major S&P sectors declined, with energy outperforming as oil prices climbed on supply concerns.
Megacap growth stocks slipped, with a few exceptions including Apple Inc, Wells Fargo & Co slid to lead losses among big banks.
According to preliminary data, the S&P 500 lost 23.53 points, or 0.57%, to end at 4,123.34 points, while the Nasdaq Composite lost 173.03 points, or 1.4%, to 12,144.66. The Dow Jones Industrial Average fell 98.60 points, or 0.30%, to 32,899.37.
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