Dow falls 139 despite improved jobs picture

A rising dollar, weak Chevron earnings and stress on Apple shares slam stocks. The national unemployment rate ticks up to 7.9% as more people look for work. Oil and gold sag. Starbucks jumps nearly 10%. Restoration Hardware soars after its IPO.

By Charley Blaine Nov 2, 2012 12:46PM
Charley BlaineUpdated: 8:03 p.m. ET

Employers added 171,000 jobs in October, but the unemployment rate ticked up slightly to 7.9%, the Labor Department announced today.

While the jobs report was basically good, stocks slumped this afternoon on weakness in Chevron (CVX), Apple (AAPL) and IBM (IBM) and a host of property-casualty companies that face big claims from Superstorm Sandy.

In addition, the dollar moved higher on the jobs report, as traders worried that the Federal Reserve might pull back on its low-interest rate policy. Energy and materials stocks were lower. Gold (-GC) fell below $1,700 for the first time since early September.

The losses wiped out weekly gains for the Dow Jones industrials ($INDU) and the Nasdaq Composite Index ($COMPX).

The Dow closed down 139 points to 13,093. The blue chips had been up as many as 57 points early in the session. Today's decline more than undid Thursday's 136-point gain. The Standard & Poor's 500 Index ($INX) was off 13 points to 1,414. The Nasdaq dropped 38 points to 2,982.

Article continues below.
The Nasdaq-100 Index ($NDX) was off 31 points to 2,656.

Apple was off $19.74 to $576.80. The new iPad Mini went on sale today. The selling in the shares accelerated after they fell below $588, their 200-day moving average. Apple is down 18% since peaking in mid-September at $702.10, though it is still up 42.4% for the year.

About 77 points of the Dow's loss was concentrated in four stocks: IBM, Chevron, Caterpillar (CAT) and Exxon Mobil (XOM). Only four of the 30 Dow stock were higher: Bank of America (BAC), Walt Disney (DIS), Merck (MRK) and McDonald's (MCD).

In addition, Verizon Communications (VZ) fell 62 cents to $44.52 after it said in a  regulatory filing that it expects the costs of restoring service and making extensive repairs to its land and mobile networks after Superstorm Sandy will have a "significant" impact on fourth-quarter results.

For the week, the Dow was off 0.1%, its third loss in the last four weeks. The S&P 500 added 0.2%. The Nasdaq dropped 0.2%, its fourth straight weekly decline. For the year, the Dow is up 7.1%, with the S&P 500 up 9.6% and the Nasdaq up 14.5%.

Markets for the week



11/2/2012

10/26/2012

% chg.

YTD chg.
Dow Industrials

13,093.16

13,107.21

-0.11%

7.17%
S&P 500

1,414.20

1,411.94

0.16%

12.45%
Nasdaq 

2,982.13

2,987.95

-0.19%

14.47%
Russell 2000

814.37

813.25

0.14%

9.91%
Crude oil 

$84.86

$86.28

-1.65%

-14.14%
(per barrel)

0.00

0.00

0.00%

0.00%
U.S. Dollar Index 

80.68

80.16

0.66%

0.20%
10-yr. Treasury

1.73%

1.75%

-1.37%

-7.75%
Gold

$1,675.20

1,711.90

-2.14%

6.92%

A solid jobs report
The jobs report was solid, if not spectacular. It is the last big economic report before Tuesday's presidential election.

Most pollsters say the result is too close to call, although Intrade, the online betting site, put the odds of a win for President Barack Obama at roughly 66.8%, up slightly from Thursday. Mitt Romney's odds were 33.3%, down from 34% on Thursday.

In addition to the 171,000 overall gain in jobs, the Labor Department revised estimates for overall job gains in August and September higher by 84,000.

The payroll gains came from the private sector, which added 184,000 jobs, the Bureau of Labor Statistics said. That was the biggest gain since February. Government employment fell by 13,000.

The unemployment rate ticked up to 7.9% from September's 7.8% because more people were looking for work.

Private service providing jobs were up 163,000, with retail trade adding 36,400 jobs.


Temporary-help services, often a harbinger of future full-time hiring, added 13,600 jobs, more than reversing the previous month's decline.


The construction sector saw an increase of 17,000 jobs, the largest rise since January. But residential construction fell back by 2,000 jobs to 560,000. That reflects the struggles of the housing industry.


Despite the current uptick in job creation, the U.S. economy faces a real threat of a renewed recession next year.


Without action by lawmakers, existing legislation will raise taxes and cut spending to the tune of about $600 billion in 2013. That scenario -- known in Washington as the fiscal cliff -- could easily cause the economy to contract.


Crude oil, gold take a tumble
Crude oil (-CL) in New York settled down $2.23 to $84.86 a barrel, the lowest close since July 10. Wholesale gasoline futures (-RB) were down 2.3% to $2.5736 a gallon. Brent crude dropped $2.49 to $105.68. .

The national average price of gasoline was at $3.496 a gallon, according to AAA's Daily Fuel Gauge Report, down from Thursday's $3.507. That's the lowest average price since July 30, when it was $3.486.

Gold tumbled $1,675.20 an ounce in New York, down $40.30. It was the biggest one-day drop for the metal since June 21 and the lowest close since Aug. 30.

Energy prices -- New York close



Fri.     Thur.

Month chg.

YTD chg.
Crude oil (-CL)

$84.86

$87.09

-1.60%

-14.14%
(per barrel)











Heating oil (-HO)

$2.9474

$3.0332

-3.75%

1.14%
(per gallon)











Natural gas (-NG)

$3.5540

$3.6990

-3.74%

18.90%
(per mil. BTU)











Unleaded gasoline (-RB)

$2.5736

$2.6336

-2.16%

-3.15%
(per gallon)











Brent crude 

$105.68

$108.17

-3.53%

-1.58%
(per barrel)











Retail gasoline

$3.4960

$3.5070

-0.71%

6.72%
(per gallon; AAA)












Restoration Hardware has a strong IPO
Despite the slump, home-furnishings retailer Restoration Hardware (RH) went public at $24 late Thursday and closed at $31.10, up $7.10. It reached as high as $33.15.

Starbucks (SBUX) shares jumped $4.22 to $50.84 after reporting strong earnings late Thursday and boosting its dividend to 21 cents a share, up from 17 cents.

The market's response today was a disappointment after Thursday's rally, which saw the Dow jump 136 points in the market's best performance since September.


Why Chevron missed
The oil giant missed Street estimates on earnings and revenues, blaming lower crude prices and a heavy period of planned oilfield maintenance. Shares were down $3.09 to $108.37.


Worldwide daily production was 2.52 million barrels of oil equivalent, down from 2. 6 million a day a year ago. Plus, the average sales price of crude oil and natural gas liquids was $91 vs. $97 a year ago.


Downstream operations earned $456 million, down from $704 million a year ago. 


Starbucks' strong report

Starbucks shares jumped because global comparable-store sales rose 6%, with a 5% increase in traffic and a 1% increase in average ticket contributing.


The company saw 10% growth in its China/Asia Pacific business. Europe lagged. The company grew its operating margin by 210 basis points (one basis is one one-hundredth of a percentage point) to 21.4% from 21.19%.


The company's strong performance helped shares of Whole Foods (WFM) move up $2.69 to $97.15. Rivals Dunkin Brands (DNKN) and Caribou Coffee (CBOU) were also higher. Panera Bread (PNRA) fell slightly.


Short hits from the markets -- New York close



Fri.

Thur.

Month chg.

YTD chg.
Treasury yields











13-week Treasury bill

0.0900%

0.090%

-18.18%

800.00%
5-year Treasury note 

0.728%

0.728%

1.82%

-12.29%
10-year Treasury note

1.726%

1.715%

2.37%

-7.75%
30-year Treasury bond

2.917%

2.897%

2.31%

0.97%
Currencies











U.S. Dollar Index

80.683

80.136

0.87%

0.20%
British pound

1.6028

1.6132

-0.67%

3.16%
(in U.S. $)

 








U.S. $ in pounds

£0.624

£0.620

0.68%

-3.06%
Euro in dollars

$1.28

$1.29

-0.98%

-0.94%
(in U.S. $)

 








U.S. $ in euros

€ 0.779

€ 0.773

0.99%

0.95%
U.S. $ in yen 

80.58

80.15

0.98%

4.51%
U.S. $ in Chinese

6.27

6.24

0.52%

-0.95%
yuan











Canada dollar

$1.005

$1.004

0.46%

2.43%
(in U.S. $)

 








U.S. dollar 

$0.996

$0.996

-0.39%

-2.38%
(in Canadian $)

 








Commodities

 

 

 

 
Gold (-GC)

$1,675.20

$1,715.500

-2.55%

6.92%
(per troy ounce)

 








Copper (-HG)

$3.482

$3.552

-1.02%

1.32%
(per pound)

 








Silver (-SI)

$30.857

$32.248

-4.51%

10.54%
(per troy ounce)

 








Wheat (-ZW)

$8.6450

$8.685

0.00%

32.44%
(per bushel)

 








Corn (-ZC)

$7.3950

$7.510

-2.15%

14.39%
(per bushel)

 








Cotton 

$0.7035

$0.702

0.40%

-23.27%
(per pound)

 








Coffee

$1.5470

$1.535

0.03%

-32.64%
(per pound)

 








Crude oil (-CL)

$84.86

$87.090

-1.60%

-14.14%
(per barrel)










 

628Comments
Nov 2, 2012 1:15PM
avatar
Obama promised the UE rate wouldn't go above 8%, and when it did he said HE DIDN"T KNOW how bad the economy was.

Obama promised to cut the deficit in half by the end of his 1st term.  His excuse for not doing so is because HE DIDN'T KNOW how much gov spending is was going to take to prop up the economy.

Obama says HE DIDN'T KNOW for 3 weeks that the attack in Bengahzi was carried out by terrorists.

Obama promised to create jobs by giving money to green energy companies.  When most of those companies went bankrupt, Obama said HE DIDN'T KNOW they were in such bad financial shape.

When housing continued to contract long after Obama's mortgage mod programs, he said HE DIDN'T KNOW the extent of the housing problem.

When health insurance premiums continued to skyrocket even after Obamacare was passed, Obama said HE DIDN'T REALIZE that would be a consequence of Obamacare.

When Dodd-Frank didn't result in more acocuntability and transparency on Wall Street, Obama said HE DIDN'T KNOW why it didn't work.

After being called out for bowing to Saudi Princes, Obama said HE DIDN'T KNOW that his actions would cause such an uproar.

After borrowing and spending trillions of dollars, Obama said HE DIDN'T KNOW why our credit rating got downgraded.

After Iran spent the last 4 years expanding their nuclear program, Obama said HE DIDN'T KNOW why his sanctions didn't work.

After giving speeches throughout the world highlighting our past mistakes and indiscretions, Obama said HE DIDN'T KNOW why people might consider that an apology tour.

After stating that the Boston cops acted stupidly, Obama said HE DIDN'T KNOW all the details surrounding the incident.

After it was determined that Obama's aunt was living in public housing, Obama said HE DIDN'T KNOW that she was here illegally.

After spending 20+ year in church, Obama said HE DIDN'T KNOW the Rev Wright espoused such extremist rehtoric.

After taking over the student loan industry, Obama said HE DIDN'T KNOW why college costs and debt levels continue to rise.
 
Isn't it time we get somebody in the White House who actually KNOWS what's going on?



Nov 2, 2012 1:23PM
avatar
Obama is more economically clueless than Carter was.   His socialist policies amount to a war on the American middle class.   That is why 42% are now collecting government checks, and we have 1/4 of the country on food stamps.  He has converted 1/4 of the middle class into poor.

As Marx said, you cannot create a socialist society before you eliminate the middle class.   If Obama has 4 more years he may succeed.  Sadly, those collecting will always vote for democrats, so we have 47% who will vote to increase their benefits at the expense of those that earn a living.

The question is do Americans want freedom and liberty or a welfare check....
Nov 2, 2012 1:42PM
avatar
Good jobs data.........what a joke. There have been no manufacturing jobs created since April and those are the jobs the middle class are looking for...............Obama has put a squash on those jobs with his socialist policies. New jobs are part time..........you only have to work an hour to be counted as employed in Obama's world of lies. , The real unemployment rate is near 14%.
Nov 2, 2012 2:01PM
avatar

These data suck and the media know it.

Nov 2, 2012 1:58PM
avatar

We are being manipulated by the media and the government. Down is really "up".  More is really "less".  Payrolls "rise"..but unemployment "slips".

 If this election is so "close" how come,out of the 4-500 people I have talked to in the last month,I have only come across three Obama supporters?  Why does the media want Obama for another term?  So they can print more chaos and dirty laundry stories?   Manipulation...

Nov 2, 2012 2:06PM
avatar
Hey MSN, where are these articles???

Here’s CBS’ latest release on Benghazi,       NOT FROM FOX;

   "CBS News has released a clip of an interview by Steve Kroft of 60 Minutes on Sep. 12 with President Barack Obama that indicates Obama knew the assault on the U.S. consulate in Benghazi, Libya was a premeditated terror attack–and suggests the White House later deceived the public by blaming protests against an anti-Islam video. CBS chose not to air the clip for over a month–but did air Obama’s attack on Romney that same night."

  

    "CBS News has learned that during the Sept. 11 attack on the U.S. Mission in Benghazi, the Obama Administration did not convene its top interagency counterterrorism resource: the Counterterrorism Security Group, (CSG).

   The CSG is the one group that’s supposed to know what resources every agency has. They know of multiple options and have the ability to coordinate counterterrorism assets across all the agencies,” a high-ranking government official told CBS News. “They were not allowed to do their job. They were not called upon.“

Nov 2, 2012 1:54PM
avatar
Obama's economics seem written with a crayon.
Nov 2, 2012 2:22PM
avatar
This "guy" in office has been nothing other than a con and shill. Certainly, he will get the "wefare" vote and that was never hard to figure or understand,,,,ever.  I will say it again that he is a complete and entire disgrace.  The only smart thing he knows is that he absolutely must have the "welfare" vote to win. Black is black and white is white and he in neither, period.   
Nov 2, 2012 1:51PM
avatar
"As more people look for work..." Oh, so that's why the UE ticked up...Sigh....
Nov 2, 2012 2:06PM
avatar
Here comes the late Friday selloff...it's like watching the guy that has that long hooked stick that scraps the tables at the Casino.
Nov 2, 2012 2:04PM
avatar

I just read the article about the new Chinese Stealth fighter, the J-31. A smaller version of the

J-20. Who do you think provided the funding for this ? I'll give you a hint- China is holding OUR debt.

Yea, that's right, Obama and his spending fool hardy Dem's. (Excuse me- I have to throw up)

 

 

 

 

 

 

 

OK- you have a even clearer choice who to vote for. Are you going to vote for Obama, who coddled our enemies and financed their war machines ? Or will you vote for Romney, who puts America' s welfare first ?

4 MORE DAY'S UNTIL WE ELECT A NEW PRESIDENT, WHO CAN LEAD!! ROMNEY/RYAN 2012!!

Nov 2, 2012 2:06PM
avatar

The following came from ABC News        Again, NOT FROM FOX!

When the mainstream media starts outing Obama, you know The Chit is about to Hit the Fan!

They know that if they hide this until after the election, what little cred they have left, is TOAST!

 

"Republicans on the House Committee on Oversight and Government Reform have released new documents backing up claims by security personnel previously station in Libya that there was a shortage of security personnel in Benghazi.

 contain previously unreleased cables from Ambassador Stevens and his staff reflecting concerns about safety in the country.

The U.S. State Department did not have an immediate comment.

One signed by Stevens and titled “LIBYA’S FRAGILE SECURITY DETERIORIATES AS TRIBAL RIVALRIES, POWER PLAYS AND EXTREMISM INTENSIFY,” dated June 25, 2012, assess the increase in violence. ”From April to June, Libya also witnesses an increase in attacks targeting international organizations and foreign interests,” Stevens wrote, describing attacks on a United Nations official in Benghazi, International Committee for the Red Cross buildings in Benghazi and Misrata, and IED at the mission in Benghazi, and RPG fired at the British Ambassador’s convoy, and an attack on the consulate of Tunisia."

 

Link     

http://abcnews.go.co​m/blogs/politics/201​2/10/documents-back-​up-claims-of-request​s-for-greater-securi​ty-in-benghazi/

Nov 2, 2012 2:10PM
avatar
" temporary help services,often a harbinger of future full time hiring...". Since when ? ??
Nov 2, 2012 2:53PM
avatar
The only statistic that should count is the percentage of available workforce actually employed on a fulltime basis.
Nov 2, 2012 1:05PM
avatar
and let the disputing the jobs numbers begin..............
Nov 2, 2012 2:28PM
avatar
LMFAO!!!!

Always railing on Fox News for reporting on Benghazi! 

Then you vote thumbs down when the  two articles I posted, came from your Beloved LEFT WING Mainstream Media Outlets ABC and CBS!

Don't care much for the facts coming out before the election, no matter where they come from huh?


Nov 2, 2012 2:12PM
avatar

WALL STREET NOTHING BUT UTTER FRAUD!

 

Yesterday's SUCKER rally of 136 wiped out in an instant by fleecing traders, brokers, hedge fund managers and all the other slimeballs that are part of this outrageous thievery.

Nov 2, 2012 2:58PM
avatar
I just went to the doctor for my yearly check-up. I told my doctor I got a new policy and it was hard to understand. Her comment was, wait until next year it gets' worse. The obama care goes into effect.
Nov 2, 2012 3:18PM
avatar
When are Republicans and Democrats going to realize neither party is always right or always wrong? This type of thinking is allowing this country to continue it's decline. I have a question for both sides. How do we change 75% of the items in America to say made in the USA instead of made in (Insert Foreign Country Here)? If we are not able to find the solution to this problem soon, we will continue to see the decline regardless of who we elect.
Nov 2, 2012 2:03PM
avatar
Obama 2012 Biden 2016  mass suicide held in USA by those who couldn't defect to Mexico
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

RECENT QUOTES

WATCHLIST

Symbol
Last
Change
Shares
Quotes delayed at least 15 min
Sponsored by:

MARKET UPDATE

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Market index data delayed by 15 minutes

[BRIEFING.COM] The major averages punctuated a solid week with a subdued Friday session. The S&P 500 shed 0.2% to narrow its weekly gain to 1.7%, while the Nasdaq Composite (+0.1%) displayed relative strength. The tech-heavy index finished the week in line with the benchmark average.

Market participants went into today's session expecting to hear some new insight from Fed Chair Janet Yellen, who delivered the keynote address at this year's Jackson Hole Symposium. Unfortunately, the ... More


Currencies

NAMELASTCHANGE% CHANGE
There’s a problem getting this information right now. Please try again later.
Sponsored by:

VIDEO ON MSN MONEY