4:05 PM, Jun 4, 2010 --
- DJIA down 324.06 (3.16%) to 9,931.22
- S&P 500 down 37.95 (3.44%) to 1,064.88
- Nasdaq down 83.86 (3.64%) to 2,219.17
- Hang Seng down 0.03%%
- Nikkei down 0.13%
- FTSE down 1.63%
(+) CMTL beats sales estimate.
(+) PPHM reports positive Phase 2 lung data.
(+) OMNI sold for $2.75 per share cash.
(+) MATK continues evening gain seen after earnings beat.
(-) STP downgraded.
(-) EPAY continues evening decline after pricing shares.
(-) BP continues efforts to stop Gulf of Mexico spill.
(-) MCD down on Shrek glasses recall.
A disappointing U.S. jobs report sent the major U.S. averages spiraling lower in Friday's regular session, with declines of more than 3% each recorded for the DJIA, Nasdaq and S&P 500.
Nonfarm payrolls rose 431,000 in May, well short of the 515,000 expected by economists. The May number was inflated by 411,000 temporary workers hired for the U.S. census. A mere 41,000 private sector jobs were created when excluding the census hires. The unemployment rate edged lower to 9.7% in May, down from 9.9% in April.
Separately, traders were spooked by a report that Hungary could face a sovereign debt issue similar to what Greece suffered through over the last several months. That news sparked a drop in the euro. The dollar firmed, weighing on the price of crude and sending it back near $71 a barrel.
Looking forward to next week, traders will get a glimpse of how the semiconductor space is performing as Altera (NASDAQ:ALTR) issues its mid-quarter update Monday and Texas Instruments (NASDAQ:TXN) does the same on Tuesday. Among earnings reports, Take-Two Interactive (NASDAQ:TTWO) is due with results Tuesday, followed by Ciena (NYSE:CIEN) on Wednesday and National Semiconductor (NYSE:NSM) on Thursday.
On the economic front, consumer credit data is due Monday, followed by wholesale inventories, crude inventories, and the Fed's Beige Book on Wednesday. Initial claims, the trade balance and Treasury budget are set for release on Thursday. Retail sales, Michigan sentiment and business inventories are slated for distribution on Friday.
BP (NYSE:BP) shares were pinned in the red in Friday's session after the company said it put an oil cap on the ruptured oil well at the bottom of the Gulf of Mexico. The company hopes to capture at least 90% of the oil escaping from the well using the cap, Bloomberg reported.
Elsewhere, McDonald's (NYSE:MCD) dropped after the government forced the fast-food chain to recall 12 million "Shrek Forever After" glasses because potentially dangerous cadmium was found in painted images on the products.
Drug make Amgen (NASDAQ:AMGN) said a study of its potential pancreatic cancer treatment showed the treatment improved patient survival rates in a mid-stage test, according to an Associated Press report. Shares of Amgen declined.
Bank of New York Mellon (NYSE:BK) priced a $700 million stock offering to assist the bank in paying for its acquisition of investment servicing company PNC Financial (NYSE:PNC), Reuters reported. Shares of Bank of New York Mellon declined.