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US markets end lower on weak jobs data

08 Oct 2016 Evaluate

US stock markets ended the Friday’s session in red terrain, as sentiments remained dampened on report from the Labor Department showing that U.S. employment increased by less than expected in the month of September. The report said non-farm payroll employment climbed by 156,000 jobs in September compared to economist estimates for an increase of about 176,000 jobs. While the job gains in August were upwardly revised to 167,000 from 151,000, the job growth in July was downwardly revised to 252,000 from 275,000. The Labor Department also said the unemployment rate edged up to 5.0 percent in September from 4.9 percent in August. The street had expected the unemployment rate to remain unchanged. Moreover, the report said average hourly employee earnings rose by 6 cents to $25.79. Compared to the same month a year ago, average hourly earnings were up by 2.6 percent. Meanwhile, Speaking at the Institute of International Finance's annual meeting in Washington, D.C., Federal Reserve Vice Chair Stanley Fischer said the jobs data was ‘pretty close’ to an ideal ‘Goldilocks’ reading. Fischer said the rate of job growth is 'fully consistent' with a continued decline in unemployment and suggested the U.S. is close to full employment.

The Dow Jones Industrial Average lost 28.01 points or 0.15 percent to 18,240.39, Nasdaq dropped 14.45 points or 0.27 percent to 5,292.40, while S&P 500 was up 7.03 points or 0.33 percent to 2,153.74. 

The Indian ADRs closed mixed; Dr. Reddy’s Lab down by 0.31%, Infosys down by 0.16% and Wipro was down by 0.01%, while Tata Motors up by 0.68%, HDFC Bank up by 0.25% and ICICI Bank was up by 0.05%. 

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