Stocks are getting hit for a 3rd straight day – Finance

  • US stock markets were under pressure on Friday after an employment report showed that unemployment fell to 3.7% in September, the lowest since 1969.
  • Traders continue to closely monitor the bond market, since the 10-year hit 3.24%, the highest since 2011.
  • tesla The shares were hit hard after Elon Musk held Twitter on the Securities and Exchange Commission, and hedge fund billionaire David Einhorn compared the company to the failed US bank Lehman Brothers.

The US stock markets were under pressure for the third consecutive day on Friday, with all major averages losing at least 1% at their lows. Heavy selling pushed the techno-heavy Nasdaq by as much as 2.1%.

Friday's weakness comes after the Bureau of Labor Statistics reported Unemployment rate in the US fell to 3.7% in Septemberthat is the lowest since 1969. The number of jobs in the non-farm sector increased by 134,000, which was less than expected, and is believed to have partially slowed the anger of Hurricane Florence. Nearly 300,000 workers, most likely in industries such as hospitality, in which they are paid, only if they appear, say that the storm kept them from working.

The solid work report sent the long-standing US Treasury bonds to the highest level in seven years, with the 10-year level exceeding 5 basis points to 3.24%. The recent strength of economic data has forced traders to contend with the possibility that the Federal Reserve may raise interest rates faster than expected. These rate hikes will make it more costly for companies that borrow money and can stifle economic growth sooner than expected.

Heavy sales beat Nasdaq for the second day in a row. This time, Tesla electric car maker found itself at the crossroads, gaining more than 7%, after the CEO of Elon Musk spent at the Securities and Exchange Commission on Twitter.

“I just want the Short Seller Enrichment Commission to do an incredible job,” Musk on Twitter on Thursday evening, "And the name change is so in place!"

Tesla shares also pressured billionaire hedge fund David Einhorn comparing the company with the failed US bank Lehman Brothers in a recent letter to investors, according to CNBC. Apple fell by about 2% after CNBC reported that Einhorn’s letter said that he was selling stock for fear China will interfere with the trade policy of America,

Elsewhere, Netflix fell by more than 4% and is now more than 15% below the record level of $ 423.20, which was set in June.

On the other hand, General Electric jumped out after it laid out contract details for Larry Culp, its new CEO. According to CNBC, Culp will receive an annual salary of $ 2.5 million, and the potential could earn another $ 300 million if the price of GE shares increases by 75% over the next four years. He has a chance to earn $ 3.75 million in annual bonuses.

Looking ahead to the next week, Earnings season starts with the Walgreens Boots Alliance community on Thursday and JPMorgan, Citigroup and Wells Fargo, all releasing their quarterly results on Friday.


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(Insider Markets)

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