A weak reading on consumer sentiment and unresolved debt issues in the U.S. put a lid on stock gains even as strong earnings from Google(GOOG) kept the Nasdaq firmly in positive territory.
The Dow Jones Industrial Average finished up 43 points, or 0.3%, at 12,479. The S&P 500 climbed higher by 7 points, or 0.6%, to 1316, and the Nasdaq gained 27 points, or 1%, to 2790.
Investors were cautious given that lawmakers indicated that answers surrounding the debt ceiling would not come until next week at the earliest. House Republican Leader Eric Cantor said the House will vote on a bill that would raise the debt ceiling by $2.4 trillion, cut spending and possibly balance the budget. However, the bill is expected to die in a Democrat-led Senate after GOP approval.
Cantor's comments came this morning after Standard & Poor's raised the pressure on Washington by warning that it could cut its rating on U.S. government debt before the U.S. actually defaults on some of its financial obligations. The U.S. Treasury has estimated that the government has until Aug. 2 before it faces default.(The Street)
Showing posts with label Dow Jones. Show all posts
Showing posts with label Dow Jones. Show all posts
Stocks were losing roughly 1% as a disappointing June jobs report had investors feeling less confident in the economic recovery.
The Dow Jones Industrial Average was down by 122 points, or 1%, at 12,598. The S&P 500 was lower by 16 points, or 1.2%, at 1338, and the Nasdaq was off by 32 points, 1.1%, at 2840.
The U.S. economy only added 18,000 jobs in June after gaining 25,000 jobs in May, according to the Labor Department's report, which was well below the increase of 80,000 that the market had been expecting. The private sector added 57,000 payrolls, missing projected additions of 110,000, according to Briefing.com. The unemployment rate was also disappointing, rising to 9.2%, even though economists had expected it to hold steady at 9.1%.
Average hourly earnings were unchanged in June and the average workweek dipped to 34.3 hours, from 34.4 hours, previously. Manufacturing industries saw a 0.3% decline in weekly hours, suggesting minimal growth in industrial production during the month.
The market took June's lower-than-expected job growth particularly hard after data from Automatic Data Processing on Thursday showed that the private sector added 157,000 payrolls in June -- more than double what economists had been expecting -- leading some market watchers to increase their expectations ahead of Friday's report.
The disappointing news curbed investors' risk appetites, triggering a flight to quality.
The benchmark 10-year Treasury rose 1 2/32, diluting the yield to 3.016%.
Source: The Street
The Dow Jones Industrial Average was down by 122 points, or 1%, at 12,598. The S&P 500 was lower by 16 points, or 1.2%, at 1338, and the Nasdaq was off by 32 points, 1.1%, at 2840.
The U.S. economy only added 18,000 jobs in June after gaining 25,000 jobs in May, according to the Labor Department's report, which was well below the increase of 80,000 that the market had been expecting. The private sector added 57,000 payrolls, missing projected additions of 110,000, according to Briefing.com. The unemployment rate was also disappointing, rising to 9.2%, even though economists had expected it to hold steady at 9.1%.
Average hourly earnings were unchanged in June and the average workweek dipped to 34.3 hours, from 34.4 hours, previously. Manufacturing industries saw a 0.3% decline in weekly hours, suggesting minimal growth in industrial production during the month.
The market took June's lower-than-expected job growth particularly hard after data from Automatic Data Processing on Thursday showed that the private sector added 157,000 payrolls in June -- more than double what economists had been expecting -- leading some market watchers to increase their expectations ahead of Friday's report.
The disappointing news curbed investors' risk appetites, triggering a flight to quality.
The benchmark 10-year Treasury rose 1 2/32, diluting the yield to 3.016%.
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