Employment cost growth cools in Q3
SPY•SPY•SPY•SPY•The employment cost index rose 0.8% in the third quarter, slightly slower than Q2’s 0.9% and in line with consensus. The Nasdaq fell more than 2%, while the S&P 500 dropped more than 1%.
The Labor Department’s employment cost index rose 0.8% in the third quarter on a quarterly annualized basis, compared with 0.9% growth in Q2 and matching consensus. Wages rose 0.7% and benefit costs 0.9%, both slightly slower than in the prior quarter.
The Nasdaq slid more than 2%, the S&P 500 fell more than 1% and the Dow dipped. Technology was the weakest S&P 500 sector, while energy led gains. The 10-year Treasury yield dipped to about 4.95%.
The employment cost figures precede next week’s JOLTS, jobless claims, ADP and Challenger layoffs data and the October employment report, due a week later. The report is expected to show 65,000 jobs added and an unemployment rate of 4.2%.
