The Standard & Poor’s 500 Index rose less than 0.1 percent to 1,998.19 at 9:32 a.m. in New York, poised for its first weekly decline in a month. The Dow Jones Industrial Average fell 5.27 points, or less than 0.1 percent, to 17,064.31.
“There has been an accumulation of positive surprises coming out of macro data so the jobs report runs counter to that,” Gary Pzegeo, who helps oversee
$25.4 billion at Atlantic Trust in Boston, said in a phone interview. “The underlying direction of monetary policy in different parts of the world is shifting. That could be a source of volatility and uncertainty.”
Employers added the fewest jobs this year in August, representing a pause in the recent momentum of the U.S. labor market as companies assess the prospects for demand. Weak growth in Europe prompted the region’s central bank to step up stimulus measures yesterday. Ukraine’s government and separatists in the country’s easternmost regions agreed on a cease-fire that will start today.
The 142,000 advance in U.S. payrolls was weaker than the lowest estimate in a Bloomberg survey and followed a revised 212,000 gain in July, figures from the Labor Department showed today in Washington. The unemployment rate fell to 6.1 percent from 6.2 percent in July, reflecting a drop in joblessness among teenagers.
Fed Timing
The Fed is gauging the strength of the labor market as it winds down a bond-buying program and considers the timing of raising interest rates. Policy officials led by Janet Yellen next meet Sept. 16-17.Increasing evidence that the economy is strengthening had fueled speculation the Fed may raise rates sooner than investors anticipate. Yellen has said the central bank will keep rates near record lows for a “considerable time” after bond purchases end.
“Today’s report somewhat contradicts the other data that says that the economy is getting stronger.” Alan Gayle, who helps oversee $49.5 billion as director of asset allocation for RidgeWorth Investments in Atlanta, said by phone. “It promotes the argument of keeping rates lower for longer. It supports Yellen’s more measured moving away from tightening.”
The S&P 500 slipped 0.3 percent in the three days through yesterday after ending last month at a record. The index gained 3.8 percent in August, the biggest increase since February, and topped 2,000 for the first time. The equities benchmark trades at 16.7 times its members’ projected earnings, near a 16.8 multiple reached last week that was its highest valuation since the end of 2009.
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