US open: Stocks slide after non-farm payrolls misses forecasts

US stocks slid after the all-important non-farm payrolls report showed employers in the world’s biggest economy added fewer jobs than forecast in August.

US employers added 142,000 jobs, compared to 212,000 in July, missing analysts’ average estimate of 230,000, the Labor Department revealed on Friday.

The unemployment rate dropped to 6.1% in August from 6.2% a month earlier, as expected.

Average weekly earnings rose by 2.1% in August, in line with the previous month’s increase, beating the forecast for a 2% gain.

“The modest 142,000 increase in non-farm payrolls in August, which was well below the consensus forecast at 230,000 and the smallest gain this year, will inevitably spark speculation that the US recovery is somehow coming off the rails again," Capital Economics said.
“We're not too concerned, however, by what is probably just an isolated blip."

The data comes a day after ADP said the US private sector added 204,000 payrolls in August, down from 218,000 the month before and below expectations for a 220,000 increase.

US jobless claims rose 4,000 in the week to 30 August to reach 302,000, more or less in line with the 300,000 forecast.

The Federal Reserve is closely monitoring the labour market to gauge the health of the world’s biggest economy as it considers the timing of the first interest rate hike.

In corporate news, Gap slumped after posting August same-store sales that fell short of analysts’ estimates.

Michael Kors Holdings dropped after its biggest shareholder Sportswear Holdings, said it was selling its stake.

Dollar General Corp. edged lower after Family Dollar Stores Inc. rejected a takeover bid.

The US 10-year Treasury yield fell two basis points to 2.43%.

West Texas Intermediate crude futures declined 0.33% to $101.49 per barrel, according to the ICE.