Finance: Dow dives more than 600 points after disappointing jobs report

Stocks erased 2018 gains Friday amid concerns of a slowing US economy after the November jobs report missed Wall Street estimates.

The Dow Jones Industrial Average slid 2.24%, or more than 550 points, turning negative for the year. The Nasdaq Composite fell 3.05%, and the S&P 500 was down 2.33%. Stocks had earlier climbed on the back of renewed expectations for the Federal Reserve to pursue a slower interest-rate path.

Semiconductor companies including Nvidia (-6.4%) and NXP Semiconductors (-6.3%) were among the biggest losers. Technology giants were also lower, with Microsoft down nearly 4% and Intel 3.8% lower.

The Labor Department said the US economy added 155,000 jobs in November, well below expectations of 198,000, and the unemployment rate held near historic lows at 3.7%. Wages grew at a slightly slower-than-expected pace, rising 0.2% for a second straight month.

“For markets, of course, this is the new Goldilocks: still strong-enough job growth, but a more cautious Fed will be good for markets and overall business confidence,” said Josh Wright, the chief economist at iCIMS Inc.

Treasury yields fell following the report, with the 10-year down 2.2 basis points to 2.854% and the 2-year 3.9 basis points lower at 2.719%. All eyes have been on rates this week after parts of the yield curve inverted, an occurrence seen as a potential recession signal. The dollar slipped against a basket of peers.

“The immediate reaction in Treasuries was that this is a soft report, but yields are now back to the pre-data level; we think that makes sense,” Ian Shepherdson, the chief economist at Pantheon Macroeconomics, said in an email. “These numbers won’t deflect the Fed next week, and we see every reason to expect a return to 200K job gains in December.”

Officials are still expected to hike the fed funds

Read More Here...

Stocks – Dow Erases Gains for Year on Tech, Trade Turmoil

© Reuters.

Investing.com – The Dow erased its gains for the year after plunging Friday on a weak jobs report and concerns over U.S.-China trade tensions.

The fell 2.24% and is down 1.34% year-to-date. The fell 2.33%, while the fell 3.05%.

U.S.-China trade tensions were thrown into further turmoil after President Donald Trump’s trade adviser Peter Navarro said if issues with China are not resolved during the 90-day ceasefire, the administration would raise existing tariffs on $200 billion worth of Chinese goods.

White House economic advisor Larry Kudlow, however, offered a more sanguine outlook, telling CNBC that Trump would consider extending the 90-day tariff truce with China if progress is made in talks.

But Kudlow’s remarks did little to allay concerns as investors abandoned trade sensitive corners of the market like industrials.

Indutrial heavyweights Boeing (NYSE:), 3M (NYSE:) and Caterpillar (NYSE:), all of which have strong international exposure, were under pressure, accelerating downside momentum in the broader market.

Tech also contributed meaningfully to the selloff on Wall Street, led by Apple after Morgan Stanley cut its price target on the tech giant’s shares on fears over a slowing smartphone market in China.

Morgan Stanley cut its price target on Apple (NASDAQ:) to $236 from $253, citing supply-chain conversations in Asia that revealed a weaker backdrop for smartphone demand. That was the third Apple price cut this week following cuts by both Rosenblatt and HSBC, sending Apple’s share price more than 3% lower.

Facebook (NASDAQ:), Amazon.com (NASDAQ:), Netflix (NASDAQ:) and Alphabet (NASDAQ:) also closed lower.

Energy, meanwhile, struggled to take advantage of the rally in oil prices, which had followed an agreement by OPEC and its allies to cut production by 1.2 million barrels a day for the first six months of 2019.

Wall Street’s start to the session was

Read More Here...

Dow's 600-point tumble puts the blue-chip gauge on the brink of re-entering correction

A fresh tumble for the Dow Jones Industrial Average on Friday was putting the blue-chip benchmark on the verge of shedding 10% from its recent peak in October, which would place it back in correction. The Dow DJIA, -2.24% was most recently off about 600 points, or 2.4%, at 24,354, with that decline placing it about 9.3% short of a dropping 10% from its Oct. 3 all-time high at 26,828.49, according to FactSet data. The decline comes amid fresh worries about trade relations between China and the U.S., with the S&P 500 index SPX, -2.33% and the Nasdaq Composite Index COMP, -3.05% also trading sharply lower on the day, even after a cooler-than-expected jobs report, showing that 155,000 jobs were created in November, offered some suggestion that the Federal Reserve may be more deliberate in raising borrowing costs in coming months. If the Dow were to tumble back into correction, it would join the S&P 500 and the Nasdaq.

See Full Story Dow closes down 550 points as stocks post biggest weekly fall since March

U.S. stocks deepened their losses Friday as new jitters on trade relations overshadow the November employment report.

Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.

Read More Here...

Dow's 600-point tumble puts the blue-chip gauge on the brink of re-entering correction

A fresh tumble for the Dow Jones Industrial Average on Friday was putting the blue-chip benchmark on the verge of shedding 10% from its recent peak in October, which would place it back in correction. The Dow DJIA, -2.24% was most recently off about 600 points, or 2.4%, at 24,354, with that decline placing it about 9.3% short of a dropping 10% from its Oct. 3 all-time high at 26,828.49, according to FactSet data. The decline comes amid fresh worries about trade relations between China and the U.S., with the S&P 500 index SPX, -2.33% and the Nasdaq Composite Index COMP, -3.05% also trading sharply lower on the day, even after a cooler-than-expected jobs report, showing that 155,000 jobs were created in November, offered some suggestion that the Federal Reserve may be more deliberate in raising borrowing costs in coming months. If the Dow were to tumble back into correction, it would join the S&P 500 and the Nasdaq.

See Full Story Dow closes down 550 points as stocks post biggest weekly fall since March

U.S. stocks deepened their losses Friday as new jitters on trade relations overshadow the November employment report.

Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.

Read More Here...

All 30 Dow industrials stocks and the 20 Dow transport stocks are falling

As the Dow Jones Industrial Average DJIA, -2.24% tumbles 659 points, or 2.6%, in afternoon trade, all 30 of its components are losing ground. Of the biggest decliners, shares of Microsoft Corp. MSFT, -4.00% dropped 4.4%, Caterpillar Inc. CAT, -3.75% shed 4.3% and Intel Corp. INTC, -4.40% declined 4.3%. The most active Dow stock was Apple Inc. AAPL, -3.57% which shed 3.5% toward the lowest close since April 30. Elsewhere, the Dow Jones Transportation Average DJT, -3.93% lost 4.2%, with all 20 components falling. Meanwhile, the defensive Dow Jones Utility Average DJU, +0.56% rose 0.5%, with 14 of 15 components gaining ground.

Have breaking news sent to your inbox. Subscribe to MarketWatch’s free Bulletin emails. Sign up here.

Read More Here...

Dow falls 2.2 percent as Wall Street losses deepen

Losses on Wall Street deepened Friday afternoon amid anxiety over the U.S.-China trade clash as the White House sent conflicting messages on trade policy.

Friday’s sell-off erased more than 500 points from the Dow Jones Industrial Average, bringing its weekly drop to more than 1,000.

Technology and health care stocks led the way lower. Microsoft fell 3.4 percent.

Traders have been dumping stocks this week as doubts emerged about how much progress had been made on defusing trade tensions between the U.S. and China.

News that a prominent Chinese tech executive had been arrested at Washington’s request suggested those tensions could get worse.

The Dow dropped 561 points, or 2.2 percent, to 24,394.

The broad-based S&P 500 slumped 2.3 percent to 2,633.42, while the tech-rich Nasdaq Composite Index tumbled 3.1 percent to 6,968.48.

The losses ended the worst week for U.S. stocks since March and left both the Dow and S&P 500 in negative territory for the year.

Read More Here...

Dow falls 650 points as trade concerns re-emerge

U.S. stocks closed sharply lower on Friday as a lack of concrete progress toward reducing U.S-China trade tensions bolstered risk-off sentiment and overshadowed the November employment report.

Benchmarks

The Dow Jones Industrial Average DJIA, -2.24%  fell 558.72 points, or 2.2%, to close at 24,388.95, the S&P 500 index SPX, -2.33% retreated 62.87 points, or 2.3%, to 2,633.08, while the Nasdaq Composite Index COMP, -3.05% slumped 219.01 points, or 3%, to finish at 6,969.25.

Ten of 11 sectors in the S&P 500 lost ground Friday, with only utilities advancing, while all 30 components of the Dow traded lower.

Check out: A death cross for the S&P 500 highlights a stock market in tatters

For the week, the Dow fell 4.5%, the S&P 500 retreated 4.6%, and Nasdaq tumbled 4.9%. It was the biggest weekly percentage decline for all three benchmarks since March, while also marking the worst start to a December since 2008, according to Dow Jones Market Data.

The slump pushed the S&P 500 and Dow back into negative territory for 2018, while the Nasdaq is clinging to a 1% year-to-date gain.

Market drivers

Concerns over global trade continue to weigh on investor sentiment, even after a Friday morning report from the Labor Department that showed healthy November job gains for the U.S. economy and the fastest pace of wage growth in nearly 10 years.

Despite efforts by the Trump administration and its Chinese counterparts to paint an optimistic picture of ongoing negotiations aimed at reducing trade tensions, investors are demanding more evidence that the two sides will avoid the imposition of new and expanded tariffs in 2019, market participants say. Once again, a pair of administration officials gave opposing views about those negotiations in separate television appearances Friday.

The effect of trade concerns on the markets can be observed

Read More Here...

Dow falls 550 points as trade concerns re-emerge

U.S. stocks closed sharply lower on Friday as a lack of concrete progress toward reducing U.S-China trade tensions bolstered risk-off sentiment and overshadowed the November employment report.

Benchmarks

The Dow Jones Industrial Average DJIA, -2.24%  fell 558.72 points, or 2.2%, to close at 24,388.95, the S&P 500 index SPX, -2.33% retreated 62.87 points, or 2.3%, to 2,633.08, while the Nasdaq Composite Index COMP, -3.05% slumped 219.01 points, or 3%, to finish at 6,969.25.

Ten of 11 sectors in the S&P 500 lost ground Friday, with only utilities advancing, while all 30 components of the Dow traded lower.

Check out: A death cross for the S&P 500 highlights a stock market in tatters

For the week, the Dow fell 4.5%, the S&P 500 retreated 4.6%, and Nasdaq tumbled 4.9%. It was the biggest weekly percentage decline for all three benchmarks since March, while also marking the worst start to a December since 2008, according to Dow Jones Market Data.

The slump pushed the S&P 500 and Dow back into negative territory for 2018, while the Nasdaq is clinging to a 1% year-to-date gain.

Market drivers

Concerns over global trade continue to weigh on investor sentiment, even after a Friday morning report from the Labor Department that showed healthy November job gains for the U.S. economy and the fastest pace of wage growth in nearly 10 years.

Despite efforts by the Trump administration and its Chinese counterparts to paint an optimistic picture of ongoing negotiations aimed at reducing trade tensions, investors are demanding more evidence that the two sides will avoid the imposition of new and expanded tariffs in 2019, market participants say. Once again, a pair of administration officials gave opposing views about those negotiations in separate television appearances Friday.

The effect of trade concerns on the markets can be observed

Read More Here...

Dow Jones Industrial Average Climbs Despite U.S. Companies Adding Fewer Jobs

The Dow Jones Industrial Average projected a small gain in pre-market hours as investors awaited the arrival of the November jobs report.

This morning, the Department of Labor said that U.S. unemployment remained at a 49-year low.

However, the U.S. economy created just 155,000 new jobs, a figure that was well short of the 198,000 expected by economists.

Here are the numbers from Thursday for the Dow, S&P 500, and Nasdaq:

Index Previous Close Point Change Percentage Change Dow Jones 24,947.67 -79.40 -0.32% S&P 500 2,695.95 -4.11 -0.15% Nasdaq 7,188.26 +29.83 +0.42%

Now here’s a closer look at today’s most important market events and stocks, plus Friday’s economic calendar.

Money Morning Insight of the Day

The 2018 midterm election was a turning point for the cannabis industry.

We expect nothing short of historic profits by the end of the year.

But not all pot stocks will hand you life-changing wins. In fact, often the companies making headlines are least likely to see the biggest gains.

These three stocks, on the other hand, are flying under the radar… for now. Each of them could see exponential stock price acceleration at any moment, and if you get in before that happens, you could turn a token stake into a lifetime of wealth.

I don’t know of any other sector providing anywhere near this level of growth now.

Click here to learn more.

The Top Stock Market Stories for Friday The Wall Street Journal said this morning that the U.S. Federal Reserve might hold off on raising interest rates in December. Ahead of the Federal Open Market Committee’s final meeting of the year, reporters say that the Fed may take a “wait and see” approach to rate hikes. Markets have faced a wealth of turmoil this week as investors worry that higher rates

Read More Here...