By Victor Reklaitis and Anora Mahmudova, MarketWatch
U.S. adds 209,000 jobs in July; unemployment rate at 6.2%
NEW YORK (MarketWatch) -- U.S. stocks on Friday added to the
prior session's losses, keeping the Dow industrials on track for
their biggest weekly drop in more than six months.
Friday's flurry of economic data only briefly lifted the stock
market. Instead, Thursday's selloff, sparked in part by signs of
rising wages, continued as investors remained fearful that the
Federal Reserve might raise interest rates sooner than
expected.
The S&P 500 (SPX) fell 3 points, or 0.2% to 1,928, though it
was off its session low. The benchmark is on pace for a weekly loss
of 2.6%, its largest slide since the week ended April 11.
The Dow Jones Industrial Average (DJI) dropped 43 points, or
0.3%, to 16,521. The blue-chip gauge is set to record a weekly
tumble of 2.6%, its biggest decline since the week ended Jan.
24.
The tech-heavy Nasdaq Composite (RIXF) was down 19 points, or
0.4%, at 4,350, leaving it down 2.2% for the week. The small-cap
Russell 2000(RUT) shed 7 points, or 0.7%, to 1,113. The Russell,
often viewed as a gauge of investors' risk appetite, is down 2.8%
for the week and off 8.3% from its July 1 intraday high.
"We're getting the follow through from yesterday," said Colin
Cieszynski, chief market strategist at CMC Markets, in explaining
Friday's mostly negative action. He said economic data generally
came in positive on Friday, and that keeps pressure on the Federal
Reserve to reduce its stimulus measures that have helped stock
prices.
"Good news for the economy is bad news for the market because it
means they'll have to take way the liquidity that's boosted stocks
eventually," Cieszynski told MarketWatch.
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Friday's key economic reports: The U.S. economy added 209,000
jobs in July, missing forecasts but signaling the economy is
sustaining its momentum.
The Institute for Supply Management's manufacturing index rose
more than expected, and a reading on consumer sentiment slipped
slightly, but was roughly in line with expectations.
Individual movers & shakers: LinkedIn Corp.(LNKD) soared 10%
after the careers-focused social network posted quarterly results
late Thursday that easily topped Wall Street forecasts.
Procter & Gamble Co.(PG) jumped nearly 4%, performing the
best among the 30 Dow stocks. The world's largest consumer products
company announced plans to shed brands, along with earnings that
beat forecasts. Meanwhile, Western Union Co.(WU) and PerkinElmer
Inc.(PKI) led S&P 500 decliners, as each stock dropped about
4%. Western Union's quarterly profit dropped, and earnings at the
manufacturer of health-testing equipment also fell.
Among new issues, Mobileye(MBLY), which makes camera-based
driver-assistance systems, soared 50% in its debut, but June IPO
GoPro Inc.(GPRO) fell 13% after its quarterly report. Read more
about Friday's jumpiest stocks in the Movers & Shakers
column.
Other markets: In Europe, Germany's DAX ended down 4.5% for the
week, its biggest weekly loss in two years, as investors continued
to fret about the impact of sanctions against Russia. Crude-oil
futures(CLU4) lost ground, while gold futures(GCU4) advanced.
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