Consumer goods companies fell after weak private-sector payrolls data did not bode well for Friday’s July jobs report.

U.S. companies added just 99,000 jobs in August, payroll firm ADP said, the smallest gain since 2021 and another sign of a rapidly cooling labor market.

Friday’s Labor Department data is expected to show a number of new jobs, but much may depend on the quality of the jobs being created, one strategist said.

“We’ve all been bartenders or waiters or waitresses… it’s a great place to start in hospitality,” said JJ Kinahan, CEO of IG North America and president of its brokerage tastytrade.

“But you want to see jobs being created in manufacturing, financial services, healthcare and so on. Those are more salaried jobs,” Kinahan said.

The number of pending homes for sale fell 8.4% year over year, the biggest decline in almost a year, as homebuyers waited on their hands in anticipation of a change in interest rates from the Federal Reserve.

In a promising sign for selling activity, the number of homes for sale is at its highest level since 2020, according to Realtor.com, which raises the possibility of further declines in mortgage interest rates.

The Institute for Supply Management said the service companies’ index rose slightly to 51.5% last month from 51.4% in July.

Write to Rob Curran at [email protected]

(END) Dow Jones Newswires

September 5, 2024, 5:21 PM ET (9:21 PM GMT)

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