Summary: Wall Street fought back to finish little changed, but fears of a coming correction loom; jobless claims show surprise drop; Argentina stock market walloped after central banker exits. Conway G. Gittens reports.
The S&P 500 narrowly avoids its first four-day slump of the year, with good jobs news barely good enough to rope in buyers. But the market scaled back deep losses to finish the day just about where it began. The early sell-off leading some to believe the market is heading towards its first major pullback in three years. USAA's Wasif Latif details what the market is worried about. SOUNDBITE: WASIF LATIF, HEAD OF GLOBAL MULTI-ASSETS, USAA INVESTMENTS (ENGLISH) SAYING: "This combination of whether it's the headline risk at the geo-political end or the receding of liquidity through tapering and the quantitative easing ending and just this general concern about what is going to happen at the Central Bank level in terms of policy. I think all those different forces are coming together and coalescing and causing some volatility in the market." Look to the travel sector for an example of that volatility. One-day after getting beat up on worries a confirmed U.S. case of Ebola would scare off travelers - airlines like Delta, JetBlue, United Continental rebounded, but not Southwest and American. Big hotel names like Starwood and Marriott also were not able to recover. But on the upside, the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, a sign the labor market may be tightening - lifting optimism ahead of the big jobs report coming out on Friday. Crude oil prices turned higher but not before hitting an 18-month low. Saudi Arabia is cutting prices in Asia in order to drain a glut of global supply, and economic data in Asia and Europe suggest global demand is not about to pick up. Elon Musk tweeting out a hint at what's next for Tesla. Perhaps a new electric model called the "D" to be unveiled on October 9th? We'll have to wait and see. Shares of the electronic car maker snapping a five-day losing streak thanks to that tweet. Take a look at this chart - stocks in Argentina tumbling roughly 15 percent in just two days. The problem: The country's top central banker quit and is being replaced with someone who will likely to side with government efforts to intervene in the struggling economy. Losses in Europe not as bad, but stocks spiraled after the European Central Bank failed to give any details about the size of upcoming asset purchases.