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Stocks Open Lower On Weak Jobs Report; Apple, FANG Stocks Dip | Stock News & Stock Market Analysis

Stocks veered lower at the start of trade Friday, after September payrolls numbers came in well below expectations.

XAutoplay: On | OffThe Nasdaq dug in deepest, down  0.2% at the starting bell as Apple (AAPL), and all four of the FANG stocks posted early declines.

The Dow Jones industrial average dipped 0.1%, while the S&P 500 futures slumped almost 0.2%.

The Labor Department’s highly anticipated September payroll report showed U.S. nonfarm employers subtracting a total of 33,000 workers. The hurricane-affected results showed a steep drop from the prior month’s original estimate of 156,000 new hires, which was revised upward to 169,000 in Friday’s report.

The 33,000-job decline was also far below economist consensus projections for 100,000 job additions. The closely watched hourly earnings rate jumped 0.5%, up from 0.2% in August and well beyond expectations for a 0.3% increase. The unemployment rate, meanwhile, dropped to 4.2%, from 4.4%.

Economic news is otherwise sparse for the day, with August wholesale inventories data due out from the Commerce Department at 10 a.m. ET, and Baker Hughes (BHGE) releasing its weekly rig count report at 1 p.m.

Fed officials will be out in force. Speeches began with Atlanta Federal Reserve Bank President Rapheal Bostic at 9:15 a.m. ET, to be followed by New York Fed President William Dudley at 12:15 p.m., Robert Kaplan of the Dallas Fed at 12:45 and St. Louis Fed President James Bullard at 1:50 p.m. ET.

Wal-Mart Drags On Dow, Costco Drops, Align Leads IBD 50

About two thirds of the Dow stocks opened lower, with Wal-Mart (WMT) notching the widest early loss, down more than 1%. The retail giant has been fighting to retake and hold its 10-week line of support, after a failed breakout attempt in August.

Apple trimmed its early loss to 0.2%. News reports originating in China suggested some  possible battery problems in the new iPhone 8 Plus.

Costco Wholesale (COST) traded down 5% at the open, after reporting generally better-than-expected results in its fiscal fourth quarter, but its net sales figure minus membership fees stopped short of some analyst targets. Costco shares had just retaken support at their 10-week moving average, as the stock attempts to climb the right side of a four-month consolidation.

All four of the FANG stock tech leaders turned lower after the jobs report. Facebook (FB) fell furthest, down 0.8%.

Among IBD 50 stocks, Align Technologies (ALGN) climbed 2% in strong trade to edge into a new high. The stock is exgtended from a February breakout, and from a rebound from its 10-week moving average in August.

IBD 50 peer SVB Financial Group (SIVB) added nearly 2%. The stock is climbing the right side of a seven-month base that has a current buy point set at 198.93.

Yum China Holdings (YUMC) rose more than 1%. The spinoff of the KFC and Taco Bell parent reported mixed fiscal third-quarter results late Thursday, but strong same-store sales performance, a $250 million increase to its share buyback plan, a first-ever dividend, and news of a changeover in chief executives cheered investors.  The stock ended Thursday’s session about 6% below a 42.22 buy point in a four-month cup base.

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