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
Five more US bank failures bring total for 2009 to 120
New York - Bank failures in the United States have risen to 120 this year as five more regional institutions were added to the list, the US agency that guarantees the safety of bank deposits said. United Commercial Bank in San Francisco with assets o...
US stocks climb slightly despite double-digit jobless rate
New York - US stocks posted mild gains Friday to end the week as investors shrugged off government figures that put the unemployment rate above 10 per cent. The Labour Department said the jobless rate hit 10.2 per cent in the month of October, the hi...
US joblessness hits 10.2 per cent, highest in 26 years - Summary
Washington - The US unemployment rate surged to 10.2 per cent in October, the highest in 26 years as another 190,000 people lost their jobs, the Labour Department reported Friday. The figure comes after a 9.8-per-cent jobless rate in September and wa...
US joblessness jumps to 10.2 per cent, highest since 1983 - Update
Washington - The US unemployment rate surged to 10.2 per cent in October, the highest in 26 years, as another 190,000 people lost their jobs during the month, the US reported Friday. The figure reported by US Labour Department came after the 9.8 per ...
US jobless rate jumps to 10.2 per cent
Washington - The US unemployment rate surged to 10.2 per cent in October as another 190,000 people lost their jobs, according to US Labour Department figures released Friday. The jobless rate stood at 9.8 per cent in September. Unemployment had been ...
Bulls stop James, edge Cavs - Summary
Los Angeles - The King couldn't deliver in the clutch. Luol Deng and Joakim Noah combined to deny LeBron James a potential game-winning drive in the final seconds as and the visiting Chicago Bulls snapped the Cleveland Cavaliers' three-game winning...
Mortgage lender Fannie Mae posts nearly 19-billion-dollar loss
Washington - US mortgage lender Fannie Mae said Thursday that it would seek 15 billion dollars in federal aid, after posting its ninth consecutive quarterly loss. Fannie Mae reported a net loss of 18.9 billion dollars in the third quarter of 2009, co...
|
|
|
|
|
|
|
|
