Stocks Slip on Slowdown Fears
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A much weaker than expected jobs report raised fears of an economic slowdown Friday.
Investors were hoping for a tame report so the Federal Reserve could end its two-year rate-hike campaign, but the report they got was much weaker than they were hoping for.
The Labor Department reported that the economy added 75,000 jobs in May, nearly 100,000 fewer than economists were expecting, and April jobs gains were also revised lower. Wage growth, a paltry 0.1%, was 0.2% less than anticipated.
Coupled with a spike in oil prices on renewed fears of a showdown with Iran, and investors saw early gains turn to mild losses by day's end.
The jobs report won't be the last word on inflation between now and the Fed's next meeting at the end of the month consumer and wholesale inflation will also be reported between now and then but the prospect of contained wage inflation had the bond market betting that the Fed is done for now.
The Nasdaq slipped half a point to 2219, the S&P 500 added 2 to 1288, and the Dow slipped 12 to 11,247. Volume declined to 2.21 billion shares on the NYSE, and 1.94 billion on the Nasdaq. Advancers led 21-11 on the NYSE, and 15-14 on the Nasdaq. Upside volume was 61% on the NYSE, and 37% on the Nasdaq. New highs-new lows were 90-55 on the NYSE, and 131-42 on the Nasdaq.
slipped 2% on a sweetened deal with Lexar
plunged 17% on its results, which included a charge for overstated results by local officials who had been fired.
lost 4% on the retirement of its CFO.