Closing Update: Stocks Post Biggest Reversal in 4 Years, With Dow Swinging from Over 250 Points Lower to 200-Point Gain
Stocks reversed steep, early declines, with a disappointing September jobs report initially spurring a broad-based selloff only to later convince investors that the dramatic drop in hiring last month likely will keep the Federal Reserve from raising interest rates this year. Nine of the 10 industry sectors in the S&P 500 finished in the black, with only rate-sensitive financial stocks unable to climb back to positive ground by the close.
Employers added only 142,000 jobs during September, well under market expectations looking for 205,000 new workers. Hiring during the prior two months also were revised sharply lower from their initial levels, dropping by a combined 136,000 for a 173,000 increase in July and August payrolls. Hourly earnings also showed little change, trailing forecasts for a 0.2% rise.
Here's where the U.S. markets stood at the end-of-day:
Dow Jones Industrial Average up 200.36 (+1.23%) to 16,472.37
S&P 500 up 27.54 (+1.43%) to 1,951.36
Nasdaq Composite Index up 80.69 (+1.74%) to 4,707.78
Nikkei 225 Index up 0.02%
Shanghai China Composite Index Holiday
FTSE 100 Index up 0.95%
(+) BIOC, Begins shipping bio-succinic acid after ramping up Sarnia joint venture with Mitsui & Co. to commercial scale. Confirms above-expectations for performance of its proprietary yeast in the production fermenters.
(+) WYNN, Chinese authorities reportedly considering new economic support to revitalize Macau's casino industry.
(+) XNPT, Decides to focus on new drug treatment for restless leg syndrome while dropping work on a prospective treatment for psoriasis after it showed high rates of side effects. CEO Ronald Barrett steps down.
(-) FOLD, Said it does not expect to sumbit a new drug application for its Migalastat monotherapy for Fabry disease before the end of the year after the FDA asks for additional data.
(-) ZINC, Oppenheimer downgrade to Perform from Outperform, following a 6.25% decline in production during September prior with the prior month and missing the company's forecasts by over 33%.
(-) PRGS, Q3 revenue rises 27% to $100.7 mln but still lags analyst estimates expecting $102.79 mln. Also sees Q4 non-GAAP revenue in a range of $113 mln to $118 mln, lagging the Street view by at least $3.63 mln.
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