Stocks trim losses after Trump's positive COVID-19 test, jobs data
WASHINGTON - Stocks trimmed losses Friday morning as investors digested President Donald Trump's disclosure that he has tested positive for COVID-19 and as U.S. job growth slowed in September.
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The Dow Jones Industrial Average was down 122 points, off the worst levels of the session, while the Nasdaq Composite slipped 0.95% and the S&P 500 0.62%.
President Donald J. Trump listens as Vice President Mike Pence addresses his remarks during an update on the nation’s COVID-19 Coronavirus testing strategy Monday, Sept. 28, 2020, in the Rose Garden of the White House. (Official White House Photo by
JOB GROWTH SLOWS
The September nonfarm payroll report showed the addition of 661,000 jobs, falling short of the 800,000 estimate, that's down from the 1.37 million jobs that were added in August,
The unemployment rate ticked down to 7.9%, compared to 8.4% previously.
Private payrolls added 877,000 jobs, while the government shed 216,000 jobs. August's jobs report was revised higher, as the economy added 1.489 million jobs, up from a prior reading of 1.371 million.
The average workweek ticked up to 34.7 hours, while average hourly earnings rose 0.1%. The Labor force participation rate fell to 61.4% in September, down from 61.7%.
TRUMP'S HEALTH
The economy is in focus after Trump and the first lady tested positive for COVID-19.
"Tonight, @FLOTUS and I tested positive for COVID-19," Trump posted at 12:54 a.m. Friday. "We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!"
U.S. stocks posted modest gains on Thursday as stimulus talks continued between U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi.
STOCKS RISE AHEAD OF SEPTEMBER JOBS REPORT AND ONGOING STIMULUS TALKS
Other asset classes were reacting to the news, as crude oil declined 4.9% to $36.83 and the U.S. Dollar Index ticked up 0.06% to 93.77. Gold futures also declined slightly, falling 0.15% to $1,913.50 an ounce.
News of Trump's infection came just a short time after one of the president's closest advisors, Hope Hicks, was revealed to have tested positive for COVID-19, which has killed more than 205,000 Americans and 1 million people worldwide.
Durable goods for August came in slightly higher-than-expected, at a reading of 0.5%, compared to 0.4% previously.
The final reading for the University of Michigan consumer sentiment in September was also higher-than-expected, at a reading of 80.4 compared to the 79 that was expected.
On the corporate front, General Motors Co. is considering boosting its stake in Nikola Corp., Bloomberg reported.
Last month, GM and Nikola agreed to a deal that would see the Detroit automaker take an 11% stake in the electric-truck maker, while also supplying fuel-cell technology and building a new battery for its Badger electric truck.
Since then, shares of Nikola have declined over allegations it made false statements about its technology and its founder, Trevor Milton, has been accused of sexual harassment. Milton has since resigned.
Amazon.com Inc. said late Thursday that nearly 20,000 of its workers had tested positive for COVID-19 in six months.
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Shares of Twilio Inc. were surging more than 7% after the cloud communications provider forecast in a filing that it would generate more third-quarter revenue than the $401 million to $406 million it predicted in August.
Tesla Inc. announced on Friday it delivered 139,300 vehicles in the third-quarter, while producing slightly more than 145,000. Wall Street analysts surveyed by FactSet expected the Elon Musk-led automaker to deliver 137,000 vehicles in the period.
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European markets were also declining on Friday, with STOXX down 0.3% and the FTSE 100 declining 0.7%.