US close: Stocks dip ahead of Columbus Day holiday

US stocks finished slightly lower on Friday following the release of a September jobs report which left economists divided, although several labelled it as "solid".

By the closing bell, and ahead of the Columbus Day holiday on the following Monday, the Dow Jones Industrial Average had dropped 0.15% or 28.01 points to 18,240.49, the S&P 500 declined by 0.33% or 7.03 points to end at 2,153.74 and the Nasdaq fell 0.27% or 14.45 points to 5,292.40.

Stocks slipped on the heels of data showing the US economy added jobs at a slower than expected pace in September and the unemployment rate showed an unexpected increase from 4.9% to 5%.

Non-farm payrolls rose by 156,000 after a gain of 167,000 in August, below market expectations for a 175,000 person increase. Nonetheless, the lower than expected reading was offset by upwards revisions to data for the prior month.

Likewise, the rise in the unemployment rate was partly a function of an increase in the labour force participation rate.

The September non-farms report was to be the last one to be published before the Federal Reserve policy meeting on 1-2 November and in the run-up to the 8 November presidential election a rate hike seems dubious.

Fed chair Janet Yellen had previously appeared to suggest she would likely raise interest rates this year.

As of the end of trading, Fed funds futures were assigning a 65.1% probability to a December rate hike by the Fed, having pointed to greater than 70% odds at one point in the session.

The yield on the benchmark 10-year US Treasury note ended two basis points lower at 1.72%.

Chris Williamson, chief business economist at IHS Markit, said the "disappointing" September employment report is a setback for those who were banking on a Fed rate rise later this year, but it has not shut the door on a December hike.

He said: “Today’s data are not weak enough to substantially alter the underlying picture of the Fed’s next move being one of tightening policy. It likely remains just a case of when, rather than whether, rates will rise.

“While a November rate hike therefore looks highly unlikely, given the proximity of the election and signs of a current weak-spot in the economy persisting into the third quarter, an election result that is positively received by the markets and business leaders will most likely pave the way for a December Fed rate hike, providing the economic data flow does not deteriorate further in the meantime.”

Meanwhile, oil prices were slightly lower but remained above the $50 a barrel mark following reports that some OPEC members and Russia will meet next week to talk about Russia’s involvement in cutting production.

West Texas Intermediate was down 0.31% to $50.28 per barrel and Brent crude was lower by 0.38% to 52.31 at 1459 BST.

On companies, shares of industrial conglomerate Honeywell International slid 7.5% to $106.94 after the company cuts its projection for sales due to a business slowdown.

Fashion retailer Gap’s shares soared 15.23% to $26.25 after it reported that margins in September were significantly higher than previously forecast despite a fire at its distribution centre in Fishkill, New York.

S&P 500 - Risers
Gap Inc. (GPS) $26.25 +15.23%
Frontier Communications Co. (FTR) $4.23 +6.02%
NextEra Energy Inc. (NEE) $121.74 +3.14%
CenturyLink Inc. (CTL) $27.76 +2.93%
Kohls Corp. (KSS) $46.13 +2.58%
Qorvo, Inc. (QRVO) $56.64 +2.35%
XL Group Ltd (XL) $33.99 +2.35%
Range Resources Corp. (RRC) $39.26 +2.11%
Chubb Corp. (CB) $124.43 +2.09%
Urban Outfitters Inc. (URBN) $36.61 +2.09%

S&P 500 - Fallers
Tyson Foods Inc. (TSN) $67.75 -8.91%
PPG Industries Inc. (PPG) $93.73 -8.28%
Honeywell International Inc. (HON) $106.94 -7.50%
First Solar Inc. (FSLR) $37.58 -5.46%
Martin Marietta Mtrl (MLM) $170.12 -4.67%
Chesapeake Energy Corp. (CHK) $6.35 -4.51%
Vulcan Materials Co. (VMC) $106.47 -4.32%
Perrigo Company plc (PRGO) $90.95 -4.10%
Masco Corp. (MAS) $33.51 -4.07%
News Corp Class B (NWS) $14.52 -3.71%

Dow Jones I.A - Risers
Goldman Sachs Group Inc. (GS) $169.83 +1.60%
Travelers Company Inc. (TRV) $114.53 +1.19%
Procter & Gamble Co. (PG) $90.00 +0.87%
Johnson & Johnson (JNJ) $119.24 +0.41%
JP Morgan Chase & Co. (JPM) $68.11 +0.35%
Merck & Co. Inc. (MRK) $62.77 +0.18%
Apple Inc. (AAPL) $114.06 +0.15%
Unitedhealth Group Inc. (UNH) $136.66 +0.14%
Microsoft Corp. (MSFT) $57.80 +0.10%
Chevron Corp. (CVX) $102.27 +0.09%

Dow Jones I.A - Fallers
United Technologies Corp. (UTX) $100.58 -1.47%
Home Depot Inc. (HD) $128.31 -1.44%
E.I. du Pont de Nemours and Co. (DD) $68.35 -1.03%
Wal-Mart Stores Inc. (WMT) $68.70 -0.95%
Caterpillar Inc. (CAT) $88.47 -0.92%
International Business Machines Corp. (IBM) $155.67 -0.77%
Verizon Communications Inc. (VZ) $49.92 -0.68%
General Electric Co. (GE) $29.08 -0.65%
Visa Inc. (V) $82.88 -0.58%
Nike Inc. (NKE) $51.79 -0.46%

Nasdaq 100 - Risers
Incyte Corp. (INCY) $97.83 +3.22%
Liberty Media Corporation - Class A (LMCA) $29.10 +2.11%
Liberty Media Corporation - Series C (LMCK) $28.82 +2.02%
Alexion Pharmaceuticals Inc. (ALXN) $125.05 +1.76%
KLA-Tencor Corp. (KLAC) $72.67 +1.23%
Western Digital Corp. (WDC) $58.67 +1.07%
QUALCOMM Inc. (QCOM) $68.19 +0.96%
Biomarin Pharmaceutical Inc. (BMRN) $93.51 +0.95%
Vertex Pharmaceuticals Inc. (VRTX) $85.70 +0.87%
Starbucks Corp. (SBUX) $53.46 +0.60%

Nasdaq 100 - Fallers
Liberty Global plc Series A (LBTYA) $32.47 -2.90%
Liberty Global plc Series C (LBTYK) $31.56 -2.68%
Mylan Inc. (MYL) $35.94 -2.44%
Discovery Communications Inc. Class A (DISCA) $27.17 -2.41%
Discovery Communications Inc. Class C (DISCK) $26.49 -2.36%
Tesla Motors Inc (TSLA) $196.61 -2.18%
Stericycle Inc. (SRCL) $75.10 -1.70%
Cognizant Technology Solutions Corp. (CTSH) $50.35 -1.68%
Whole Foods Market Inc. (WFM) $28.86 -1.60%
Bed Bath & Beyond Inc. (BBBY) $44.34 -1.60%