Markets Tumble On Weak Jobs Report

 |  Includes: DIA, QQQ, SPY
by: Midnight Trader
  • Dow Jones Industrial Index down 124.20 (-0.96%) to 12,772.47
  • S&P 500 down 12.90 (-0.94%) to 1,354.68
  • Nasdaq Composite Index down 38.79 (-1.30%) to 2,937.33


  • Nikkei 225 down 59.05 (-0.65%) to 9,020.75.
  • Hang Seng Index down 0.04% (-8.49) to 19,800.64.
  • Shanghai China Composite Index up 1.01% (+23.30) to 2,328.63.
  • FTSE 100 down 0.47% (-26.62) to 5,665.93.

U.S. stocks slumped Friday after a disappointing report on the U.S. labor market ignited fears of an impending slowdown. U.S. employers added just 80,000 jobs in June, only marginally more than 77,000 reported in May. Analysts polled by MarketWatch had expected the U.S. would add 100,000 jobs.

Over the past three months the U.S. gained just 225,000 jobs, making it the weakest quarter of job growth since 2010.

Unemployment stayed at 8.2%, in-line with expectations. Average hourly earnings went up 0.3%, beating consensus estimates of 0.2% and topping the prior week's 0.1%. The average workweek increased, going from 34.4 hours last period to 34.5 hours this period. The consensus estimate was 34.4 on a range of 34.4 to 34.5 hours. Private payrolls advanced 84,000, ahead of last week's 82,000 but short of the consensus of 100,000.

In company news, LaCrosse Footwear, Inc. (NASDAQ:BOOT) soared to a year high after the company announced that it entered into an agreement with Japanese footwear retailer, ABC-MART, INC., pursuant to which ABC-MART will acquire all outstanding shares of LaCrosse Footwear stock for $20 per share in cash, or approximately $138 million. The transaction is expected to close in the third calendar quarter of 2012.

Crude-oil futures plunged Friday, due to a stronger greenback and the unsettling U.S. jobs report. Oil for August delivery fell 3.2%, to end at $84.45 a barrel on the New York Mercantile Exchange. Gold for August delivery fell 1.9%, to settle at $1,578.90 an ounce on the Comex division of the New York Mercantile Exchange.


(+) ASUR, Announces Acquisition of PeopleCube

(+) SYNC, Touches 52-Week High; No News


(-) BHI, Disappointing Rig Count

(-) INFA, Issues Weak Outlook

(-) APKT, Earnings Warning