Dow Futures Slide Over Worryingly Weak September Jobs Report, Crypto Coins News

Dow Jones Industrial Average (DJIA) futures slid early Friday after recovering by half a percentage point on Thursday.

The futures index lost 0. 36% in pre -market hours as it eyes movement below the key psychological level of 26, 000 points.

The slide in the Dow Futures comes as the market prepares to receive the US jobs report for September. Last month the Non-Farm Payrollsreportshowed that the number of employment positions in the U.S. had grown by 130 , 000 which was below forecasts.

Which way non-farm payrolls?

Major Wall Street firms now expect the September number to be slightly higher. Goldman Sachs, for instance, estimates that the nonfarm payrolls rose by 150, 000 last month, according toFxstreet. This is the same number that TD Securities is expecting. Deutsche Bank estimates the numbers will be 145, 000 while UBS expects 139, 000 new jobs created.

While improved numbers are expected to be printed in the US jobs report, other surveys released this week painted a gloomy outlook. Consequently, this has seen the Dow Jones index drop by nearly 1, 000 in two days. The index, however, made aslight recoveryon Thursday.

Is the worst over for the Dow?

Among the reportswhich painted a gloomy picture include the US Institute of Supply Management (ISM) Manufacturing Purchasing Managers ’Index (PMI). While a PMI reading of 50 .2 was expected, a figure of 47 .8% was printed, signaling a contraction in manufacturing activity. This was the lowest level since June 2009. Additionally, the ISM’s employment gauge was also at the lowest level since January 2016.

The service sector, which employed 80. 2% of the US workforce in 2018 per theBureau of Labor Statistics, also recorded a decline in September having fallen from 56 .4% to 52 .6%.

Anotherreportreleased this week that indicated that the pace of hiring is slowing in the US, and which contributed to the Dow Jones index tanking mid-week, was the ADP National Employment Report. The report showed that the private sector created 135, 000 job positions in September, a figure that was below estimates. Additionally, the report also revised August numbers from 195 , 000 job positions created by the private sector to 157, 000.