A stop sign

More signs that the U.S. economy is not as bad as everyone thought. But, big downgrades in Europe bring us back to reality.

First, the scoreboard:

Dow: -18
S&P 500: -10

And now, the top stories:

  • The highly-anticipated September jobs data came out with a bang.  U.S. companies added 103k non-farm payrolls.  Economists expected just 60k.  The July and August figures were both revised upwards.
  • However, the unemployment rate was unchanged at 9.1%, which wasn’t a surprise.  Also, the jobs recovery remains painfully slow.
  • Fitch downgraded Italy and Spain in the middle of the trading day.  Italy was cut from AA- to A+ with a negative outlook.  Spain was cut by two notches to AA- and its outlook is also negative.
  • The Euro dived against the dollar after the two downgrades.
  • U.S. banks also sold off, as uncertainty remains regarding Eurozone exposure.  Everyone’s new favourite punching bag, Morgan Stanley got, banged up, even as their biggest competitor Goldman Sachs made a bullish call on the stock.  Morgan Stanley fell 6%.  Goldman Sachs lost 5%.  Bank of America and JP Morgan declined 6% and 5%, respectively.
  • Sprint shares dived after a rough investor day.
  • Late in the day, the Federal Reserve said consumer credit unexpectedly shrank by $9.5 billion in August, the first contraction in 11 months. Economists expected growth of $8 billion.  However, markets rallied after the news came out.
  • Don’t Miss: China Could Send 3 Million Jobs Back To The US By 2015

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