U.S .. shares became negative late Friday morning, after modestly negotiating higher at the beginning of the trade, as new jitters over commercial relations overshadowed a November employment report.
How are the benchmarks working?
The Dow Jones Industrial Average
fell 237 points, or 1%, to 24.711, the S & P 500 index
fell 21 points, or 0.8%, to 2.674, while the Nasdaq composite index
traded 86 points, or 1.3%, less than 7.095.
Check out: A death cross for S & P 500 highlights a shredded stock market
For the week, Dow, S & P 500 and Nasdaq are set to show higher falls at 3%.
Read: The Dow has just knocked down a 785-point dive, marking his most incredible reversal since March
Monday morning, both the S & P 500 and the Dow threatened to move into territory negative for the year, while the Nasdaq is holding on to a 3% advance since the beginning of the year
What is driving the market?
The US economy added 155,000 new jobs in November, according to the Labor Department, Friday morning, below expectations of 190,000 new jobs, for MarketWatch survey of economists.
The employment report also showed that the unemployment rate remained stable at 3.7%, as expected. Average hourly earnings grew to 6 cents from October, or 0.2%, only in line with expectations, and grew 3.1% year-over-year, their highest rate since 2009
Job numbers are of particular importance to investors, as these data will inform the Federal Reserve Interest Rate Committee, the FOMC, as it prepares to decide whether to raise interest rates in its next meeting on 18 and 19 December.
Signs that the FOMC could take a less aggressive move in rate normalization have increased, with the Wall Street Journal reporting that Fed officials are considering a new waiting mentality at that December meeting.
Expectations for an increase in December interest rates show a probability of 76.6%, down from 83% a week ago, according to data from the CME Group, with rising expectations that the policies makers could cool the rate hike path in 2019.
after a hectic session that had been colored by fears of escalating commercial battles between the US and China. This happened after the arrest in Canada of a senior Chinese technical manager at the Chinese telecommunications giant Huawei Technologies, which amplified the concerns in an already marginal market on relations between Beijing and Washington on tariffs and intellectual property rights .
Read: The arrest of Huawei creates concerns both in Silicon Valley and abroad
Those fears combined with a persistent decline in crude oil prices have made investors particularly honest, caring that global economic growth is endangered.
What market participants say
"The employment report put the needle very well," J.J. Kinahan, chief market strategist with TD Ameritrade told MarketWatch, claiming that 150,000 new jobs are neither too high nor too low for investors.
"If this had really gotten hot, the market would have interpreted it as a number that would have forced the Fed to raise rates not only in December, but also in March," he said. "You did not want to miss me too much on the negative side, as it would shake confidence in the economy," said
Steve Chiavarone, Federated Investors portfolio manager at MarketWatch, told MarketWatch that the report on Employment was bullish, trade concerns will continue to weigh in the short term market.
At the top of his list of concerns there is a recent decline in capital expenditures that says "is absolutely related to trade".  "Companies can not plan their global supply chains, with such uncertainty as to where politics is going, and if you can not plan, you can not invest," said Chiavarone. This dynamic will damage the US economy, productivity growth and equity values if China and the US do not reach an agreement that provides certainty about the new rules of trade.
What titles are in focus?
Shares of Big Lots Inc .
fell by over 22%, following a third-quarter loss that was larger than expected.
Shares of Broadcom Inc .
AVGO, + 1.41%
are the focus of attention after the chip maker announced fourth-quarter revenue and tax returns on Thursday night that exceeded Wall Street expectations. The stock rose by 1.8% on Friday morning.
Ulta Beauty Inc .
ULTA shares, -9.89%
fell 8.4% in early trading on Friday, following a Thursday night earnings release that forecast weaker holiday sales that analysts were hoping for.
Shares of Altria Group
MO, + 2.23%
are the focus of attention after the company announced that it would take a 45% stake in the cannabis company Cronos Group Inc .
CRON, + 21.85%
worth $ 1.8 billion. The stock is up 1.3%, while Cronos shares are up more than 21% on news.
What other Fed data and speakers are ahead?
- Wholesale stocks increased by 0.8% in October, as sales fell 0.2%, the Commerce Department reported Thursday.
- The index of consumer sentiment at the University of Michigan reached 97.5, higher than 97.3, according to a survey by MarketWatch economists.
- The Federal Reserve Board Gov. will speak at 12:15 pm
- St. Fed Chairman James Bullard will speak at 13:00
- A reading on consumer credit for October will be published at 3:00.
How are the other markets traded?
Asian markets traded higher on Friday, with the Nikkei 225
NIK, + 0.82%
up 0.8% and markets in South Korea
SEU, + 0.34%
XJO, + 0.42%
advance during the day. The Shanghai composite index
SHCOMP, + 0.03%
was practically flat, with gains of less than 0.1%.
European markets were also traded on Friday, with Stoxx Europe 600
SXXP, + 0.81%
and FTSE 100
UKX, + 1.41%
in the green.
CLF9, + 4.06%
rise by 4.3% Friday, while the gold
GCG9, + 0.60%
is advancing by 0.6% and the US dollar
with a margin of less than 0.1%.
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