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 built on the
week's losses, leaving the Dow Jones Industrial Average with its
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 Dow(DJI) dropped 69.93 points, or 0.4%, to close at
16,493.37 on Friday, though it finished off its session low. The
blue-chip gauge recorded a weekly tumble of 2.8%, its biggest
decline since the week ended Jan. 24.
The S&P 500 (SPX) fell 5.52 points, or 0.3% to end at
1,925.15. The benchmark endured a weekly loss of 2.7%.
The tech-heavy Nasdaq Composite (RIXF) was down 17.13 points, or
0.4%, at 4,352.64, leaving it down 2.2% for the week.
Friday's generally positive economic data keeps pressure on the
Federal Reserve to reduce its stimulus measures that have helped
stock prices, said .Colin Cieszynski, chief market strategist at
CMC Markets.
"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) closed up
11.7% after the careers-focused social network posted quarterly
results late Thursday that easily topped Wall Street forecasts.
Procter & Gamble Co.(PG) finished up 3%, 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 nearly
4%. Western Union's quarterly profit dropped, and earnings at
PerkinElmer, a manufacturer of health-testing equipment, also
fell.
Among new issues, Mobileye(MBLY), which makes camera-based
driver-assistance systems, soared 48% in its debut, but June's hot
IPO, GoPro Inc.(GPRO), fell 14.6% after its earnings as investors
focused on lofty valuations. 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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