Bloomberg Business
–European Stocks Decline as U.S. Payroll Data Miss Forecasts: European stocks declined as disappointing U.S. jobs data cast doubt on the Federal Reserve’s stance that the recovery of the world’s largest economy is strong enough to withstand an increase in interest rates. The Stoxx Europe 600 Index retreated 0.6 percent to 344 at 2:27 p.m. in London, erasing an earlier advance of as much as 1.7 percent. Shares also reversed gains yesterday, as an early rise was undone by disappointing U.S. manufacturing data, illustrating nervousness about global growth prospects amid mixed signals from the U.S. and China.
-U.S. Stocks Slide Following Weaker-Than-Forecast Payrolls Data: U.S. stocks fell after weaker-than-forecast jobs data suggested the economy is feeling the impact of slowing global growth. The Standard & Poor’s 500 Index fell 1.3 percent to 1,899.44 at 9:32 a.m. in New York, after the benchmark climbed for a third day Thursday. A report today showed payrolls rose less than projected in September, wages stagnated and the jobless rate was unchanged as people left the workforce, signaling the global slowdown and financial-market turmoil are rippling through the world’s largest economy. The addition of 142,000 jobs followed a revised 136,000 gain the prior month that was lower than previously estimated. The median forecast in a Bloomberg survey of economists called for a 201,000 advance.
–Traders Don’t See Fed Moving Until at Least March, Futures Show: The bond market is pushing back expectations for the first Federal Reserve interest-rate increase in almost a decade until at least March. Traders pared bets on a 2015 increase after the Labor Department said the nation gained 142,000 jobs, following a revised increase of 136,000 in August. The median forecast in a Bloomberg News survey of economists was for an addition of 201,000. Traders are pricing in just a 30 percent probability that the Fed raises rates by its December meeting, based on the assumption that the effective fed funds rate will average 0.375 percent after liftoff. The chances climb to 39 percent by January and 51 percent by March. Before Friday’s labor data, traders saw a 46 percent chance of a Fed increase by December.
-Morgan Stanley Said to Join Five-Way $18 Billion Granite Contest: Morgan Stanley is readying an offer for a 12 billion-pound ($18 billion) mortgage portfolio being sold by the U.K. government, said three people with knowledge of the matter, increasing competition ahead of a deadline next week. The lender is working with Cerberus Capital Management, said the people, who asked not to be identified because the talks are private. The mortgages are the collateral backing a securitization vehicle called Granite, originally formed by nationalized U.K. lender, Northern Rock Plc.
CNN Money
-The big jobs report: The U.S. government posted lower-than-expected job numbers for September, which has slammed market sentiment. The U.S. economy only added 142,000 jobs in September and the number of jobs created in July and August were revised down. Economists surveyed by CNNMoney had forecast that the economy would add 204,000 jobs in the month. Meanwhile, the unemployment rate stayed at 5.1%, its lowest level in 7 years. The Fed has been widely expected to raise interest rates later this year, but Fed members have been delaying a hike as they wait for the job market to show some real strength. (Fears about a slowdown in China have also held them back too.)
–Stock market overview: U.S. stock futures dropped sharply after the release of the jobs report. Most European markets are also declining. Asian markets ended with mixed results. This follows a rather uninspiring Thursday when markets did a whole lotta nothing. The Dow Jones industrial average inched down 0.1%, while the S&P 500 and the Nasdaq each notched a 0.2% gain.
–Potential market movers — Micron, Wynn, T-Mobile, Experian: Shares in Micron Technology (MU) are rising by about 3% premarket after the semiconductor firm reported earnings late Thursday that topped expectations. This was encouraging for investors who have seen the shares plummet by nearly 60% this year. Shares in Wynn Resorts (WYNN) have suffered a similar fate in 2015 on concerns about its business in Macau. The stock is rebounding by 7% premarket. And watch trading in T-Mobile (TMUS) and Experian (EXPGY). Experian suffered a major data breach where hackers have made off with personal information of 15 million people who applied to sign up for T-Mobile’s service. T-Mobile used Experian, one of the three major credit bureaus, to conduct credit checks on its customers. Shares in Experian are down by about 5% in London.