Economic worries lead market lower after jobs data
|
|
|
By Kristina CookeNEW YORK (Reuters) - U.S. stocks fell on Friday after a government report showed employers unexpectedly cut jobs in February at the steepest rate in nearly five years, compounding fears of recession in the world's largest economy.Big industrial companies seen as economic bellwethers such as heavy-equipment maker Caterpillar and conglomerate General Electric were among the biggest drags.Energy companies also felt the pinch from economic concerns, even as oil set a record high. Exxon Mobil and Chevron weighed on the S&P 500 and the Dow.The jobs data, higher oil and problems in the financial system show "we have a long way to go until the economy is back up and running at full-tilt. You are looking for a silver lining and you just can't find it," said Edward Bretschger, director of equity sales and trading at Calyon Securities in New York.The Dow Jones industrial average <.DJI> was down 113.97 points, or 0.95 percent, at 11,926.42. The Standard & Poor's 500 Index <.SPX> was down 9.29 points, or 0.71 percent, at 1,295.05. The Nasdaq Composite Index <.IXIC> was down 8.51 points, or 0.38 percent, at 2,211.99.Struggling bond insurers were again in the spotlight. Shares of Ambac Financial Group Inc fell 5.9 percent to $6.98 after it sold $1.5 billion of shares and convertibles to protect the company's credit ratings, but investors who wanted the company to raise more were disappointed.But financial shares were slightly higher after the Federal Reserve announced a revamped measure to ease strains in the credit markets. Analysts also noted that investors who had bet the sector would fall further reversed their "short" positions.Minutes before the jobs report, the Fed said it would increase amounts in its Term Auction Facility auctions March 10 and March 24 to $50 billion each, a rise of $20 billion from the amounts announced for each of these auctions.Employers cut payrolls for a second straight month, and it was the biggest monthly job decline in nearly five years.Caterpillar shares fell 1.6 percent to $69.90, while General Electric shares fell 1.3 percent to $32.44.Chevron's shares dropped 2.3 percent to $85.81, while Exxon Mobil dropped 2 percent to $82.82.(Editing by Kenneth Barry)
(c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
Related News
Hershey, Nestle, sweeten war for Cadbury
Washington - Hershey and Nestle are expected to jump into the war over Cadbury sweets, media reports said Saturday, just weeks after the British-based stalwart rejected a hostile bid by US Kraft Inc. The growing market for chocolate in the developing...
US stock drop slightly on Dell profits, mixed for week
New York - Technology and energy shares pushed US stocks lower Friday, capping a mixed week for investors amid unease about the pace of the world's economic recovery. Tech stocks slid after a disappointing earnings report from computer giant Dell, wh...
GM: Opel restructuring plan by mid-December; cuts up to 25 per cent
Washington - US carmaker General Motors will present a new restructuring plan for its European operations by mid-December, Nick Reilly, the new head of GM Europe, wrote on his new blog Friday. While the details were still being hashed out, Reilly war...
US stock sell-off on fears of weak recovery
New York - US stocks followed global markets in a broad decline amid investor fears over the world's uneasy recovery from recession. Major US stock indices fell about 1 per cent on average, following hefty declines in the DJ Euro Stoxx 50 and Japan's...
US leading economic indicator gains 0.3 per cent
Washington - A key measure of US economic performance gained in October, according to a private research group Thursday, signalling that a broader recovery may be taking hold. The New York-based Conference Board's Leading Economic Index added 0.3 per...
US stocks fall slightly on technology earnings
New York - US stocks posted modest losses Wednesday on poor profit forecasts from technology firms and a surprising dip in home construction. Earnings from Salesforce.com and Autodesk were worse than expected. Other technology shares losing ground in...
Obama acknowledges danger of double-dip recession if deficit grows
Washington - President Barack Obama said Wednesday he was mindful of the dangers brought on by the country's skyrocketing budget deficit, warning that too much spending could lead the United States into another recession. Obama, who has taken heavy c...
|
|
|
|
|
|
|
|
