Wall Street gave investors a glimmer of hope today as it opened higher, but the ensuing volatility of the market snatched away any confidence that equities were stabilizing. Investors were encouraged initially by the better-than-expected jobs report for July. Highly anticipated throughout the week, the report from the U.S. Labor Department said that nonfarm payrolls grew by 117,000 last month, beating the 75,000 that economists had expected. The unemployment rate fell to 9.1 percent from 9.2 percent. Financial analysts can’t seem to agree on whether the numbers were good or bad enough. On the one hand, jobs increased were better than expected, but on the other, it isn’t enough to have a significant impact on the economy’s health. Investors are also concerned that the European Central Bank’s bond-buying intervention may not be enough, particularly because the ECB is not focusing on helping the troubled economies. As fear spreads over both the broader and global economies, volatility is expected to increase. Oil prices have plummeted to $85 a barrel this month and the economic uncertainty has also managed to drag on precious metals like gold and silver as well.
Major U.S. Stock Indices
DJIA: 11,410.32 (+0.23)
s&p 500: 1,198.30 (-0.15 percent)
NASDAQ: 2,536.12 (-0.79 percent)
Russell 2000: 712.56 (-1.96 percent)
In other news:
- As trading volatility continues to grow, how prepared is the market to handle another “Flash Crash?” [WSJ]
- Famed investor Jim Rogers thinks investors shouldn’t sell into the climax, but the market should also be allowed to bottom out. [CNBC]
- Should Google (GOOG) buy Research In Motion (RIMM) and combine its Android operating system with the Blackberry? [The Street]
- Who said social media companies aren’t profitable? But is LinkedIn (LNKD) the exception or the norm? [Fortune]
- How short-sellers, independent research analysts, and bloggers managed to wipe out over $21 billion in market value of Chinese companies. [Reuters]
Check back for more news.
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