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. 12.42 0.01 0.08 5,596,521
JPM JP Morgan Chase 84.07 0.38 0.45 18,996,905
DB Deutsche Bank AG 18.67 0.38 2.08 19,456,496
GS The Goldman Sachs Group Inc. 235.56 4.18 1.81 6,595,232
BAC Bank of America Corporation 22.57 0.41 1.85 168,005,152
YUM Yum! Brands Inc. 64.44 0.98 1.54 2,654,989
GOOG Alphabet Inc. 771.19 12.08 1.59 1,760,966
NFLX Netflix Inc. 125.39 0.82 0.66 8,204,687
MMI Marcus & Millichap Inc. 28.73 0.32 1.13 218,041

Comments

Emerging Growth

CMX Gold & Silver Corp.

CMX Gold & Silver Corp is an exploration stage company. The Company is engaged in the acquisition, exploration and development of silver and copper/gold properties in the USA.

Private Markets

Pinterest

Pinterest is a visual discovery and planning tool. Users ("Pinners") use the site and apps to get ideas for their future, such as recipes, places to travel, and products to…

Spotify

Spotify is a online music service offering providing digital content from a range of record labels and artists. Users can browse through the interface by artist, album, genre, playlist, record…