Pre-Market Pulse 4th September – US Jobs data not enough to spark more hikes

Overnight – US Jobs data not enough to spark more hikes

Equities ended higher on Friday after a jump in unemployment cemented expectations of a pause in interest rate hikes this month, while shares of streaming firms tumbled due to a rate dispute between Disney and Charter Communications. The Labor Department’s report showed the August unemployment rate rose to 3.8% while wage growth slowed. Nonfarm payrolls rose more than expected, though data for July was revised lower to 157,000 job additions. The data added to recent macroeconomic evidence that the Federal Reserve is winning its battle against inflation, and it cemented expectations the central bank is near the end of its interest rate hiking cycle

Walt Disney dropped 2.4% and Charter Communications fell 3.6% after the companies traded salvos over an unresolved distribution agreement after several channels, including ESPN, went dark on Thursday for customers of Charter’s Spectrum cable service. Other streaming companies also fell, with Warner Bros Discovery slumping 12%, Paramount Global losing 9.5% and Fox Corp down nearly 6%.

The most traded stock in the S&P 500 was Tesla, with $32.6 billion worth of shares exchanged during the session. The shares declined 5% after the EV maker cut prices for its Model S and Model X vehicles in the U.S.

Broadcom fell 5.5% after the chipmaker projected current-quarter revenue below expectations, while Dell surged 21% after the personal computer maker raised its annual forecasts for revenue and profit.

The U.S. stock market will remain closed on Monday for the Labor Day holiday.