Here Are 3 Hot Things to Know About Stocks Right Now

  • The U.S. added 134,000 jobs in September, lower than economists expected, and the unemployment rate fell to 3.7%, the lowest level since 1969.
  • The Dow Jones Industrial Average fell sharply on Friday, following its biggest one-day percentage decline since August, as bond yields jumped for a second day.
  • Costco Wholesale Corp. (COST)   declined 5% after the retailer warned it expects to report a "material weakness" in its internal controls.

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Wall Street Overview

Stocks trimmed some of their losses, but ended the day broadly lower on Friday, Oct. 5, as investors digested a weak U.S. payrolls number and bond yields rose.

The Labor Department noted the declines came as Hurricane Florence hit the southeastern part of the country and businesses struggled to find qualified workers at a time of unusually low unemployment.

Nonfarm payrolls climbed by 134,000, the Labor Department's Bureau of Labor Statistics said, fewer than the 184,000 expected by economists. The unemployment rate fell to 3.7%, the lowest since 1969, from 3.9%. Average hourly earnings rose by 2.8%, faster than the current pace of inflation of about 2%.

The losses followed a shard drop on Thursday, Oct. 4, as government bond yields across the globe soared.

Comments this week from Fed Chairman Jerome Powell, as well as U.S. economic data that confirmed both robust economic growth and a tight labor market, have forced investors to re-price both the "risk-free" rate of U.S. Treasury bonds and the trillions in assets that are linked to them in markets all over the world.

The moves took benchmark 10-year U.S. Treasury bond yields to 3.23% -- the highest in seven years -- and boosted the value of the dollar on global foreign exchange markets. The 10-year was yielding 3.235% on Friday following the release of the jobs report.

The Dow Jones Industrial Average ended the day down 180 points, or 0.68%, to 26,447. Earlier, the Dow had fallen more than 300 points. The S&P 500 declined 0.55%, and the Nasdaq fell 1.16%. Leading the Dow lower were Intel Corp. (INTC - Get Report) and Caterpillar Inc. (CAT - Get Report) .

Tesla Inc. (TSLA - Get Report)  fell 7% after a tweet from Elon Musk's official Twitter account appeared to insult the Securities and Exchange Commission just days after the erratic CEO of the electric vehicle company settled a case with the agency over his infamous "go-private" tweets.

The latest tweet read:

Just want to that the Shortseller Enrichment Commission is doing incredible work. And the name change is so on point!

— Elon Musk (@elonmusk) October 4, 2018
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Costco Wholesale Corp. (COST) fell 5.6% on Friday after the warehouse retailer reported fiscal fourth-earnings that matched analysts' estimates but warned it expects to report a "material weakness" in its internal controls.

Costco said the "weakness relates to general information technology controls in the areas of user access and program change-management over certain information technology systems that support the company's financial reporting processes."

Chief Financial Officer Richard Galanti told analysts there weren't any signs that such access was abused or that any financial misstatements were made, but "we should've fixed it." The company is doing so now, he added, the Seattle Times reported.

Mattress Firm, the country's largest mattress retailer with more than 3,000 stores nationwide, filed for Chapter 11 bankruptcy protection on Friday, Oct. 5. Rival Tempur Sealy International Inc. (TPX - Get Report)  fell 0.6% on Friday after trading higher earlier in the session.

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