Dow falls 47 ahead of big jobs report

Apple tops $600 in its best close in 3 months on reports of a smaller iPad. A modest rally stalls in late-day trading. Central banks in China, Europe and Britain move to boost their economies. Ross Stores and TJX see strong June sales.

By Charley Blaine Jul 5, 2012 12:36PM
Charley BlaineUpdated: 8:42 p.m. ET

Stocks looked like they might finesse a decent little rally today thanks to a gain in Apple (AAPL), lower jobless claims and a rebound in oil prices that seemed to offset worries about a slowing global economy.

But the rebound stalled in the last hour of trading as another head wind came to bear on markets: Many investors preferred to wait for Friday's big jobs report. The Dow Jones industrials ($INDU) and the Standard & Poor's 500 Index ($INX) ended with small losses. The Nasdaq Composite Index ($COMPX) managed a tiny gain, its fourth in a row.

The economic fears were triggered when the People's Bank of China and the European Central Bank cut interest rates and the Bank of England initiated a new round of government-bond purchases to support the British economy. The moves came within 45 minutes of each other. Mario Draghi, the president of the ECB, said the economic slowdown was hitting even the strongest members of the European Union, which would mean Germany, Austria and the Netherlands.

Apple closed up $10.53 to $609.94, its best close since April 12 and its first close above $600 since April 27. The catalyst was reports that the company is getting ready to produce a new version of its iPad with a 7-inch screen. The iPad was introduced with a 10.5-inch screen.

The Dow finished down 47 points to 12,897. The blue chips had been down as many as 92 points and up as many as 17 points. The S&P 500 fell 6 points to 1,368. The Nasdaq finished at 2,976.12, up 4 one-hundredths of a point. The Nasdaq-100 Index ($NDX) gained 2 points to 2,647 after giving up nearly all of a 16-point gain.

Article continues below.
The market had closed at two-month highs on Tuesday.

U.S. jobless claims fell to a seasonally adjusted 374,000 in the week ended June 23 from 388,000 the week before and the lowest level in six weeks. The Labor Department will issue its June report on payrolls and unemployment before the stock market opens Friday.

Consumer discretionary stocks were the strongest sector of the market, largely because of gains for discount retailers, which generally reported decent same-store sales for June compared with a year ago. Ross Stores (ROST) was up $4.41 to $67.19. TJX Companies (TJX) added $1.59 to $44.09. Upscale department store operator Nordstrom (JWN) added 97 cents to $51.53.

A disappointing sales report came from Costco Wholesale (COST), whose June sales were up 3% when Wall Street had expected 3.7%. Shares fell 42 cents to $94. They had hit an all-time high of $95.55 on Monday. And there was concern the stock, up nearly 15% going into today's trading, had run out of gas.

The weakest sector was financial stocks, largely because of European worries. JPMorgan Chase (JPM) and Bank of America (BAC) were the weakest of the 30 Dow stocks, down $1.50 to $34.38 and down 24 cents to $7.82, respectively. Citigroup (C) was off 81 cents to $26.84. 

Home Depot (HD), up 46 cents to $52.11, and McDonald's (MCD), up 72 cents to $89.30, were the top Dow performers. Wal-Mart Stores (WMT) hit a record $71.30 before falling back to $71.08, up 33 cents.

Freeport-McMoRan Copper & Gold (FCX) was up 26 cents to $35.47. Reuters reported that the gold-and-copper company may do an initial public offering for its Freeport Indonesia subsidiary. The operation controls the Grasberg mine on the island of New Guinea. The mine has the largest gold reserves and is the second-largest copper mine in the world. The Indonesian government wants to limit foreign ownership in mines to no more than 49%  after 10 years of production.

After the close, Informatica (INFA) shares fell 25% to $32.34 after rising 36 cents to $43.37 in regular trading. The company, which markets data-integration software, warned that second-quarter revenue will be $180 million to $190 million, down from the Street consensus estimate of 217.2 million. Earnings will be 27 cents to 28 cents a share, shy of the Street estimate of 37 cents. The company blamed the shortfall on macro issues involving Europe. It also announced a $100 million share buyback and said Worldwide Field Operations chief Paul Hoffman will retire by year's end.

Some good news ahead of Friday's jobs report
The jobless-claims report was just one bit of good news on the jobs front. There were two others:

The ADP Employment Report estimated 176,000 nonfarm jobs were created in June from a revised estimate of 136,000 in May. That was much better than the consensus estimate of 95,000. ADP said private-sector jobs rose by 160,000, up from a revised 137,000 in May.

The ADP report is closely watched as a barometer of Friday's big jobs and unemployment report, due at 8:30 a.m. ET. It also can misread the trends that it sees.

The second was buried in the Institute for Supply Management's Non-Manufacturing Report. The report showed a slowing in growth in the sector. But it also showed that the employment index component rose in June from May.

The consensus has been that the report will show 90,000 nonfarm jobs created and an unemployment rate of 8.2%. Goldman Sachs, however, raised its payrolls estimate from 75,000 to 125,000.

Energy prices -- New York close



Thur.

Tues.

Month chg.

YTD chg.
Crude oil (-CL)

$87.22

$87.66

2.66%

-11.75%
(per barrel)











Heating oil (-HO)

$2.7684

$2.7585

2.16%

-5.00%
(per gallon)











Natural gas (-NG)

$2.9450

$2.8990

4.28%

-1.47%
(per mil. BTU)











Unleaded gasoline (-RB)

$2.7648

$2.7229

5.05%

4.04%
(per gallon)











Brent crude 

$100.70

$99.77

2.97%

-6.22%
(per barrel)











Retail gasoline

$3.3380

$3.3360

-0.45%

1.89%
(per gallon; AAA)











U.S. markets were closed Wednesday for the 4th of July holiday.

Crude oil crawls back; gold falls on a rising dollar
Crude oil (-CL) in New York was at $87.42 a barrel, off 24 cents, but it had been down to as low as $86.50 until an Energy Department report showed domestic oil supplies much lower than expected. Brent crude had fallen to as low as $99.30. It was up to $100.90 a barrel, a gain of $1.13.

Energy stocks were initially lower, but losses were trimmed as crude oil prices rallied. The Energy Select Sector SPDR (XLE) fell to as low as $66.86 but climbed back to $67.13, down 86 cents. Exxon Mobil (XOM) was off 71 cents to $85.57. Chevron (CVX) was off $1.34 to $106.03.

Gold (-GC), meanwhile, dropped $14.70 to $1,607.10 an ounce. Silver (-SI) and copper (-HG) also were lower.

The 10-year Treasury yield fell to 1.597% from Tuesday's 1.631%.

Worries about a global slowdown rise
The actions of central banks in China, Europe and Britain signaled a growing level of alarm about the world economy, although suggestions of coordinated action were downplayed.

Of the three, the surprise move was from Beijing, which lowered its lending rate by 31 basis points to 6% after an interest rate cut just a month ago, which also came out of the blue.

"It shows that policymakers' concerns about the global economy have only grown," economist Mark Williams, an economist at Capital Economics, told Reuters.

The European Central Bank cut rates to a record low 0.75% following a dire run of economic data. But it steered clear of bolder moves such as reviving its government bond-buying program or flooding banks with more long-term liquidity.

The Bank of England, whose rates are already at a record low 0.5%, said it would restart its printing presses and buy 50 billion pounds ($78 billion) of assets with newly created money to help the economy out of recession.

The moves pushed the euro to as low as $1.23701 today; it finished at $1.2387. The euro has fallen 4.4% against the dollar this year.

European stocks were down sharply at first, but recovered somewhat. Stocks in Germany were off 0.5%. French stocks were down 1.2%, but British stocks were up slightly.

Short hits from the markets -- New York close



Thur.

Tues.

Month chg.

YTD chg.
Treasury yields











13-week Treasury bill

0.0700%

0.080%

-12.50%

600.00%
5-year Treasury note 

0.673%

0.697%

-7.68%

-18.92%
10-year Treasury note

1.597%

1.631%

-3.74%

-14.64%
30-year Treasury bond

2.722%

2.744%

-1.48%

-5.78%
Currencies











U.S. Dollar Index

82.942

81.872

1.45%

3.01%
British pound

1.5538

1.5601

-1.06%

0.00%
(in U.S. $)

 








U.S. $ in pounds

£0.644

£0.641

1.07%

0.00%
Euro in dollars

$1.24

$1.25

-1.87%

-4.40%
(in U.S. $)

 








U.S. $ in euros

€ 0.807

€ 0.798

1.91%

4.60%
U.S. $ in yen 

80.19

79.87

0.56%

4.01%
U.S. $ in Chinese

6.38

6.34

0.08%

0.82%
yuan











Canada dollar

$0.988

$0.988

0.57%

0.72%
(in U.S. $)

 








U.S. dollar 

$1.013

$1.013

-0.56%

-0.71%
(in Canadian $)

 








Commodities

 

 

 

 
Gold (-GC)

$1,609.40

$1,621.80

0.32%

2.72%
(per troy ounce)

 








Copper (-HG)

$3.493

$3.540

-0.10%

1.66%
(per pound)

 








Silver (-SI)

$27.6720

$28.2800

0.22%

-0.87%
(per troy ounce)

 








Wheat (-ZW)

$8.3800

$7.9925

10.66%

28.38%
(per bushel)

 








Corn (-ZC)

$7.0875

$6.745

11.62%

9.59%
(per bushel)

 








Cotton 

$0.7058

0.726

-1.05%

-23.01%
(per pound)

 








Coffee

$1.8035

1.8045

5.65%

-21.47%
(per pound)

 








Crude oil (-CL)

$87.22

$87.66

2.66%

-11.75%
(per barrel)










 
U.S. markets were closed Wednesday for the 4th of July holiday.

193Comments
Jul 5, 2012 4:47PM
avatar
Not only are we losing private property rights, we are also losing privacy rights.  Did you know the gov now has the right to enter your home or business WITHOUT YOUR KNOWLEDGE OR CONSENT and they don't have to inform you they were even there until their investigation is officially concluded, which can sometimes take years.   Yup, it's true, these are called SNEAK AND PEEK WARRANTS and they only came into existence with the Patriot Act, which is anything but patriotic.  Look it up.
Jul 5, 2012 3:01PM
avatar
The Iran oil embargo was not designed exclusively for the Wall Street Speculators to use as a crutch to raise oil prices up once again, but this is what it is turning into. These people will sell their own people out to make a dollar. Washington needs to take a hard look at Speculation in the oil futures trading and take appropriate measures to stop them. These people do not just want to make a profit, they want to make a killing no matter what the cost to the working and poor people in this country and to our economy.
Jul 5, 2012 1:10PM
avatar
BLUE CARS- Obama may not have a direct bearing on oil prices but his policies and the people he puts in charge of various agencies do.   There is still severe restrictions on government land oil leases, the permitting of off shore drilling has been slowed tremendously and the the Obama administration is still tossing Billions of dollars to inefficiant and unsustainable "green companies".   Obama's appointees to the SEC and other regualtory agencies could crack down on commodity speculation which is about 40% of the additional cost of gasoline.  Remember also that gas prices always go up around the summer holidays as the result of pure specualtion and nothing more.
Jul 5, 2012 3:03PM
avatar
Thursday's Libtards of Hypocrisy lesson

One side of their mouth says this - Abortion is protected by the Constitution because the Government should not be dictating what a person does with their own body

The other side says this - We need to ban Happy meals, large sugary drinks, tobacco, fast food etc, because it is harmful to your body.


Jul 5, 2012 2:50PM
avatar
How convenient that they happened to notice the low oil supply at a time when oil was down so they could push the price back up.  I don't see how some of them sleep at night.  It's okay greedy bastards....you will all get yours one day so live it up now i guess. 
Jul 5, 2012 1:29PM
avatar
HERE WE GO, THE ENERGY DEPT STATES OIL SUPPLIES MUCH LOWER THAN EXPECTED. ANOTHER DOMESTIC . COCK AND BULL PROPAGANDA REPORT CREATED TO STABILIZE AND ULTIMATELY CAUSE A RISE IN THE PRICE OF OIL .CANT BLAME OPEC, IRAN OR ANY OTHER IMBECILE FOR THIS MANUFACTURED CATALYST TO RAISE PROFITS.
Jul 5, 2012 2:51PM
avatar
Germany's economic growth is slowing - they had been using exports to China to help them stay afloat amidst the Euro-zone crisis, however, now China is cutting its rates which flags a signal that their economic growth is slowing also. Greece is looking like it will exit the Euro. Spain and Italy are still in trouble. ... funny how the market shrugs off big news when it wants to.

Manufacturing has been pinning hopes on China's consumerism and hoping for continued growth in this market.

It's going to be a rough summer globally.




Jul 5, 2012 2:31PM
avatar
"If unemployemnt is over 8% I will be a one term President.

B.O.  2009
Jul 5, 2012 1:37PM
avatar
Hey,everyone! All,that have at least two brain cells to rub together so as to provide the spark of intelligence,  must agree that both Obama and Romney are very intelligent people taking advantage of a system that we have created! Also Wall Street in and of itself is neither good or bad,only misused!
So let us agree to change the system ,that allows gaming same ,to one that will actually punish those that want to steal and hurt others! So quit bitching and complaining and get to your "Local System Abuser" and say shape up or ship out!!!!!!! serferdude

Jul 5, 2012 1:26PM
avatar
I am suprised oil prices havn't made a huge leap with what is going on with Iran right now. What an excuse for the mainpulators to cash in. I think gas prices will make a huge jump($0.75 per gallon) by the end of the month. I hope not but we shall see. I am suprised Iran is not headline news right now?
Jul 5, 2012 5:56PM
avatar
JOBS REPORT IS IN .............IT SUCKS REAL BAD OUT THERE !!!!!!!!!!!
Jul 5, 2012 4:31PM
avatar

Any wagers that the brokers and traders already know what the job report numbers are and have already sent emails to all their clients telling them what to do tomorrow?  Do we have any active traders on here that would like to comment on that question???

Jul 5, 2012 4:23PM
avatar
Classic lady ,   the OBamaa Bus was built in Canada ,   so must be the Jobs he was talking about
Jul 5, 2012 1:49PM
avatar
Every time oil drops, the puppet running Iran starts barking. We don't see the correlation here? after how many times? Let him bark. The Hebrews are going to wipe him out after the election anyway. 
Jul 5, 2012 6:09PM
avatar
World economy is weak, why the hell are Oil prices going up? No Speculation? Really?
Jul 5, 2012 2:30PM
avatar
Obummers new bumper sticker. 

Come on now, Give me another chance.
Jul 5, 2012 1:45PM
avatar
As long there is enough gas to get Air Force One to Hawaii 3 times a year....it's all good.
Jul 5, 2012 2:37PM
avatar

Jeff R says -- If unemployemnt is over 8% I will be a one term President.

B.O.  2009

 
Hey ABS.......... Maybe this is the "Vision" Obama is talking about.
Jul 5, 2012 10:35PM
avatar
Eight goddamn porn fishers on the first page...How much do these people pay'em.
Jul 5, 2012 2:29PM
avatar

Jeff R says - The smartest investment right now is teleprompters. Sales are getting ready to go through the roof in all 50 states. 

 

.......... or if your Obama all 57 states.

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 Nasdaq Composite (+0.5%) and S&P 500 (+0.2%) posted modest gains on Thursday, but not before enduring a morning dip into the red, which took place in reaction to reports indicating Russia has commenced military exercises on the Ukrainian border.

The news from Europe knocked the key indices from their early highs, while giving a boost to safe-haven assets like gold futures (+0.5% to $1290.80/ozt), Treasuries (10-yr yield -1 bps to 2.69%), and the Japanese yen (102.30 ... More


Currencies

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

VIDEO ON MSN MONEY