By Anora Mahmudova and Carla Mozee, MarketWatch
U.S. adds 209,000 jobs in July; unemployment rate at 6.2%
NEW YORK (MarketWatch) -- The U.S. stock market fell sharply on
Friday, putting it on track to finish the week with the biggest
loss in more than three months.
The energy sector led the decline in the S&P 500, as
Friday's flurry of economic data only briefly stabilized the
market. Instead, Thursday's selloff, sparked by signs of rising
employment costs, continued, as investors continued to fear that
the Federal Reserve might raise interest rates sooner than
expected.
The S&P 500 (SPX) fell 13 points, or 0.7% to 1,916.54 and
was on track to record a hefty weekly loss. The Dow Jones
Industrial Average (DJI) dropped 122 points, or 0.7%, and also was
set to record a loss for week. The same was true for the Nasdaq
Composite (RIXF), which was down 41 points, or 0.9%, at 4,328.49
early Friday afternoon.
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The U.S. in July added more than 200,000 jobs for the sixth
straight month, signaling the economy is likely to sustain its
momentum through the summer months. The unemployment rate ticked up
to 6.2%, as more people entered the labor force in search of work,
the government reported.
The final University of Michigan/Thomson Reuters consumer
sentiment index slipped slightly in July, but was in line with
expectations.
U.S. manufacturing lost some momentum in July after hitting an
almost-two year high in June, according to the final purchasing
managers index released by Markit on Friday.
Liz Ann Sonders, chief investment strategist at Charles Schwab,
said Friday's jobs report -- neither too not nor too cold --
alleviated fears that the Fed might start raising interest rates
sooner than previously thought.
Investors also reacted to comments from two Fed policy
makers.
Richard Fisher, the president of the Dallas Fed and a voting
member on the Fed's rate committee, said during an interview with
CNBC that the central bank is now closer to raising rates after a
two-day policy meeting that ended Wednesday. But Charles Plosser,
the president of the Philadelphia Fed, said interest rates are
"well behind" what is appropriate.
Company news
Investors focused on earnings results as well as reacting to
monthly car sales.
LinkedIn Corp. (LNKD) shares soared 9% after the professional
social network reported revenue and profit that easily topped Wall
Street forecasts.
Procter & Gamble (PG) topped profit estimates, and shares
rose 3.9%.
PerkinElmer Inc.(PKI) led S&P decliners. Second-quarter
earnings at the manufacturer of health-testing equipment fell
17%.
Shares of Mobileye (MBLY), which makes camera-based
driver-assistance systems in cars, soared 55% on its debut. Also
read: Four things to know about Mobileye.
GoPro Inc. (GPRO) posted better-than-expected second-quarter
results late Thursday, but the shares fell 14%, giving back some of
their 30% increase since their June debut. Read more about today's
notable movers in Movers & Shakers column.
In Europe, Germany's DAX slumped 2.1%, part of a 4.5% slide for
the week, as investors continued to fret about the impact of
sanctions against Russia.The broader Stoxx Europe 600 fell 1.2% to
its lowest close since April. In Asia, Japan's Nikkei Average lost
0.6%.
Crude-oil futures (CLU4) lost ground, and gold futures (GCU4)
advanced 1%. The ICE U.S. Dollar index (DXY) was at 81.327, down
from 81.446 on Thursday.
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