Equities Roundup: Jobs Data Disappoints Wall Street

Equities Editors Desk |

Mortgage ForeclosureThe highly anticipated nonfarm payroll report reaffirmed the worst fears for investors. Stagnant job growth shows that the economy is still stuck in a prolonged rut and the dangers of a recession are intensifying. That nation's unemployment rate stayed flat at 9.1 percent while the number of hours worked and pay didn't see any growth either. The dismal jobs report adds further speculation that the Federal Reserve will be forced to act in order to combat recessionary forces. One such move at the Fed's disposal is known as Operation Twist, in which the U.S. central bank will sell shorter-term Treasuries and buy long-term bonds. Financial stocks are also getting hammered today as the Federal Housing Finance Agency, which manages Fannie Mae (FNMA) and Freddie Mac (FMCC), said it plans to sue major banks like Bank of America (BAC), JPMorgan Chase (JPM), Goldman Sachs (GS), and Deutsche Bank (DB) for failing to conduct proper due diligence on bad mortgages. In commodities, oil prices drop over 2 percent as investors once again worry that economic decline means lower demand. Gold prices moved up over 2 percent.



Major U.S. Stock Indices

DJIA: 11,288.24 (-1.79 percent)
S&P 500: 1,179.35 (-2.08 percent)
NASDAQ: 2491.79 (-2.13 percent)
Russell 2000: 691.98 (-2.39 percent)

In other news:

  • Negotiations between Netflix (NFLX) and Starz have broken down. The premium cable content provider had played a major part in Netflix's video streaming success, but an asking price that was 10x more than the previous contract was more than the video-by-mail company was willing to pay. [Marketwatch]
  • Google's (GOOG) major acquisition of Motorola Mobility (MMI) received a lot of attention for the patents it was getting, but no one really said anything about the actual products. [Bloomberg]
  • Americans should be putting more accountability of the current economic malaise on politicians and government officials. [CNBC]
  • High net worth investors are selling gold and buying high-end art instead as a way to preserve their wealth. Could an ETF focused on rare paintings be on the horizon? [Reuters]
  • The top jobs creators right now are retailers like Staples (STPL) and Taco Bell, owned by Yum! Brands (YUM), and the military. [The Street]

Check back for other news.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
BRCD Brocade Communications Systems Inc. 12.46 -0.01 -0.08 3,922,068
JPM JP Morgan Chase 83.30 -0.64 -0.76 16,539,960
DB Deutsche Bank AG 18.88 0.14 0.75 3,639,951
GS The Goldman Sachs Group Inc. 231.41 -2.88 -1.23 4,553,390
BAC Bank of America Corporation 22.53 -0.10 -0.44 75,898,008
YUM Yum! Brands Inc. 64.03 -0.33 -0.51 1,539,280
GOOG Alphabet Inc. 802.18 -3.90 -0.48 911,979
NFLX Netflix Inc. 138.41 5.15 3.86 23,165,113
MMI Marcus & Millichap Inc. 25.53 -0.07 -0.27 177,960

Comments

Emerging Growth

AfterMaster Inc

Studio One Media Inc is a diversified media and technology company. It is engaged in the development and commercialization of proprietary, edge audio and video technologies for professional and consumer…

Private Markets

D-Wave

D-Wave Systems is the first quantum computing company. Its mission is to integrate new discoveries in physics, engineering, manufacturing, and computer science into breakthrough approaches to computation to help solve…

Trustify

Trustify provides trust and safety in both the digital and physical worlds through our vast network of on-demand Private Investigators.By removing the large retainers and high hourly rates that traditional…