U.S. Stocks Little Changed on Jobs Growth, Italy Reform
U.S. Stocks Rally on European Bond Buying Optimism
Scott Eells/Bloomberg
The S&P 500 erased its gain for 2011 this week and is now down about 4 percent for the year.
The S&P 500 erased its gain for 2011 this week and is now down about 4 percent for the year. Photographer: Scott Eells/Bloomberg
Aug. 5 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. Most U.S. stocks fell, completing the worst weekly slump for the Standard & Poor’s 500 Index since 2008, as optimism Europe will take steps to contain its debt crisis failed to offset concern about an economic slowdown. Bloomberg's Pimm Fox also speaks. (Source: Bloomberg)
Aug. 5 (Bloomberg) -- David Rosenberg, chief economist at Gluskin Sheff & Associates, and Mark Luschini, chief investment strategist at Janney Montgomery Scott LLC, talk about prospects for the U.S. economy and stock market. They speak with Carol Massar on Bloomberg Television's "Street Smart." (Source: Bloomberg)
Aug. 5 (Bloomberg) -- Laszlo Birinyi, president and founder of research and money management firm Birinyi Associates Inc., talks about the performance of U.S. equities and investment strategy. Biriyni speaks on Bloomberg Television's "InBusiness with Margaret Brennan." (Source: Bloomberg)
Aug. 5 (Bloomberg) -- President Barack Obama, former House Speaker Newt Gingrich and Roubini Global Economics LLC co-founder Nouriel Roubini speak about data showing U.S. payrolls rose by 117,000 workers in July. Former Federal Reserve Governor Randall Kroszner, Barclays Capital's Dean Maki, Cumberland Advisors' Robert Eisenbeis, White House economist Dean Maki and Tokyo-Mitsubishi UFJ's Chris Rupkey also comment. (Excerpts. Source: Bloomberg)
Aug. 4 (Bloomberg) -- Martin Feldstein, an economics professor at Harvard University, Bill Gross, portfolio manager at Pacific Investment Management Co., Lawrence White, economics professor at New York University's Stern School of Business, Hugh Johnson, chairman of Hugh Johnson Advisors LLC, and Barton Biggs, managing partner and co-founder of Traxis Partners LP, talk about the risk of another U.S. recession. (Source: Bloomberg)
U.S. stock-index futures retreated, indicating the Standard & Poor’s 500 Index may extend its biggest selloff since February 2009, as investors await a jobs report amid concern the world’s largest economy is faltering.
Exxon Mobil Corp. and Chevron Corp. (CVX) both lost more than 2 percent in Germany as crude oil declined for a sixth day. Alcoa Inc. (AA), the largest U.S. aluminum producer, slumped 2.8 percent as metal prices retreated. Banks including JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC) also dropped.
Futures on the S&P 500 expiring in September dropped 0.8 percent to 1,189.7 at 6:02 a.m. in New York. Dow Jones Industrial Average futures lost 88 points, or 0.8 percent, to 11,283.
“The move in equities relative to bonds has been really shocking,” said Trevor Greetham, director of asset allocation at Fidelity International in an interview with Bloomberg Television. “If we get a positive payrolls number, markets would rally very strongly. Lead indicators are still very negative, so I would be tempted to sell into that rally.”
U.S. stocks plunged yesterday as concern that the global economy is weakening prompted a global rout that has wiped off more than $4.4 trillion from equity market values worldwide since July 26. The benchmark S&P 500 has lost 7.1 percent so far this week, on course for the biggest five-day selloff since at least November 2008.
U.S. Jobs, Unemployment
Today’s non-farm payrolls report may show that U.S. employers failed to create enough jobs in July to reduce the jobless rate, economists said. Payrolls climbed by 85,000 workers after an 18,000 increase in June that was the smallest this year, according to the median forecast in a Bloomberg News survey.
The Labor Department release, due at 8:30 a.m. in Washington, may also show that the jobless rate held at 9.2 percent after rising in each of the previous three months. Data yesterday showed initial claims for unemployment insurance payments fell last week to a level that shows limited improvement in the labor market.
Exxon lost 2.3 percent to $72.18 in Germany and Chevron retreated 2.6 percent to $94.28 as crude oil fell to its lowest price in eight months as investors speculated that fuel demand will falter as the U.S. economy stalls.
Alcoa lost 2.8 percent to $12.58 in early New York trading as base metals tumbled on the London Metal Exchange.
JPMorgan lost 2.4 percent to $37.02 in Germany, while Bank of America retreated 3.7 percent to $8.50 in early New York trading. The two biggest U.S. banks respectively tumbled 5 percent and 7.4 percent yesterday.
To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
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