Wall St set to slide at open on jobs data
|
|
|
By Ellis MnyanduNEW YORK (Reuters) - Stocks headed for a lower open on Friday after a government report showed the U.S. labor market deteriorated further in August, pushing the unemployment rate to its highest in more than 4-1/2 years.The news of the unemployment rate climbing to 6.1 percent last month from 5.7 percent in July painted a bleak picture for the economy and the outlook for profit growth, and fueled a sell-off in Europe.Technology shares, including chip makers Qualcomm and Texas Instruments , were set to be among the top drags after Nokia , the world's biggest maker of mobile phones, slashed its third-quarter market share outlook.A broad slide on Wall Street will extend Thursday's rout that has put the broader market on the cusp of retesting its July 15 low."We are running job losses that are typically seen in the early stages of a economic recession. We are probably in one with the unemployment rate going up that much over the last year, and especially in a single month," said David Resler, chief economist at Nomura Securities in New York.S&P 500 futures fell 11.9 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 102 points and Nasdaq 100 futures lost 18.50 point.The bleak news on the economic front diminished the appetite for riskier assets like stocks, causing investors to run for the relative safety of government debt. Benchmark 10-year U.S. Treasury yields fell to their lowest in 4-1/2 months.Merrill Lynch will also be among the high-profile drags after Goldman Sachs cut the investment bank to a "sell" and said it will likely incur additional write-downs for soured mortgage investments. Merrill shares slid 5.4 percent to $24.80 before the bell.(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...
|
|
|
|
|
|
|
|
