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Crummy jobs report dampens holiday mood
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(AP Photo/Mark Lennihan, file)
Investors ignored a decent rise in factory orders and chose to focus on a steep drop in jobs, sending stocks sharply lower heading into the holiday weekend.
The Dow Jones Industrials lost 223 points to close at 8,281, the S&P 500 Index shed 27 points to finish at 896, and the Nasdaq Composite closed down 49 points to 1,797.
Renewed fears about the economy did lend support to Treasuries, which will likely ease upward pressure on mortgage rates, and the price of oil sank below $67 per barrel.
But there wasn't much good to be found in the employment figures, and the 18th-consecutive decline in nonfarm payrolls may increase demands for the government to focus more on the economy and less on its ambitious legislative agenda.
Jobless claims remain high but other indicators of economic activity are showing that the recession is easing. Unfortunately, improvement in employment normally lags in a recovery.
Focus shifts to 2Q earnings season
Next week, 2Q earnings season will kick off with Alcoa on Wednesday. A 34% drop in profits for the S&P 500 Index is expected followed by another decline in 3Q before a rebound in 4Q, according to Bloomberg News. Guidance and comments about the economic environment will be closely followed by the Street.
For more info and a slightly different look at today's report: Please see my blog Tomorrow's Economy Today.
Separately, Have gasoline prices hit the summer peak is also available.
A look at the European Central Bank's rate decision and its apparent desire to focus more on the potential for inflation than current economic woes may also be of interest.
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