Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. REUTERS/Brendan McDermid/File Photo Acquire Licensing Rights
Sept 1 (Reuters) – The S&P 500 and the Nasdaq reversed early gains on Friday as an initial boost from data pointing to an easing in labor market conditions fizzled out, while shares of streaming firms tumbled amid a rate dispute between Disney and Charter Communications.
The Labor Department’s report showed the unemployment rate rose to 3.8% last month while wage growth slowed. Nonfarm payrolls rose more than expected, though data for July was revised lower to 157,000 job additions.
U.S. stocks had got a boost from the report on hopes that the data would allow the Federal Reserve to pause its monetary tightening.
At 12:03 p.m. ET, the Dow Jones Industrial Average (.DJI) was up 9.12 points, or 0.03%, at 34,731.03, the S&P 500 (.SPX) was down 5.04 points, or 0.11%, at 4,502.62, and the Nasdaq Composite (.IXIC) was down 47.32 points, or 0.34%, at 13,987.65.
“The jobs report was good for the market, but it isn’t all that great because September is a difficult month (for stocks) generally,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
Further weighing on markets, Walt Disney (DIS.N) and Charter Communications (CHTR.O) slipped 2.7% and 3.6%, respectively, as the companies traded salvos over their unresolved distribution agreement after several channels including ESPN went dark on Thursday for customers of Charter’s Spectrum cable service.
Other streaming firms such as Warner Bros Discovery (WBD.O), Paramount Global (PARA.O) and Fox Corp fell between 5.0% and 10.1%, dragging the S&P 500 communication services sector (.SPLRCL) 0.8% lower.
Tesla (TSLA.O) was also a big drag on the S&P 500 and the Nasdaq, falling 4.3% after the EV maker cut prices for its Model S and Model X vehicles in the U.S.
Most other megacap growth stocks also fell as U.S. Treasury yields, which had declined immediately following the payrolls report, edged higher.
The nonfarm payrolls report caps a data-heavy week and has added to evidence of a slowing economy, boosting hopes that the Fed is close to ending its interst rate hikes.
All three main U.S. stock indexes are on track to post weekly gains, with the tech-heavy Nasdaq (.IXIC) up 3% so far this week.
Broadcom (AVGO.O) fell 6.2% as the chipmaker projected current-quarter revenue below expectations, while Dell Technologies (DELL.N) surged 21.7% after the personal computer maker raised its annual forecasts for revenue and profit.
Lululemon Athletica (LULU.O) gained 5.3% after the yogawear maker lifted its annual profit and revenue forecasts for a second time.
Walgreens Boots Alliance (WBA.O) slipped 5% after the pharmacy chain said CEO Rosalind Brewer has stepped down.
Advancing issues outnumbered decliners for a 1.73-to-1 ratio on the NYSE and a 1.82-to-1 ratio on the Nasdaq.
The S&P index recorded 23 new 52-week highs and 17 new lows, while the Nasdaq recorded 73 new highs and 59 new lows.
Reporting by Shristi Achar A and Amruta Khandekar in Bengaluru; Additional reporting by Sruthi Shankar; Editing by Shounak Dasgupta
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