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Weak Job Data Pulls Down Stock Markets (KO, BA, JPM, IAG, GDX, GLD)

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The much-awaited employment report was weak, with data showing a net loss of 85,000 jobs in December. The report suggested that US companies are taking things one at a time and are in no hurry to re-hire, despite the resumption of economic growth in 3Q09. The employment data went against the general perception of analysts and investors, who believed that the report would show that hiring was finally catching up with the recovery.

Eric Rosengren, president of the Federal Reserve Bank of Boston, commented that the nation should expect gradual improvement in the job market, as economic recovery continues to be bogged down by tight credit, long-term unemployment and cautious spending habits of consumers and business.

Weak employment data reversed the direction of the stock markets. The Dow Jones industrial average (NASDAQ: INDU) slipped by 22 points, or 0.2%, as it took the hit from Boeing (NYSE: BA), Coca-Cola (NYSE: KO) and JP Morgan Chase (NYSE: JPM). The S&P 500 index (NYSE: SPX) lost 3 points, or 0.3%, and the Nasdaq composite (NASDAQ: COMP) fell by 4 points, or 0.2%.

Meanwhile, gold has inched higher. COMEX gold for February delivery gained $0.80 to $1,134.50 an ounce. While IAMGOLD Corporation (USA) (NYSE: IAG) shares gained 2.39% to 16.28, SPDR Gold Trust (ETF) (NYSE: GLD) lost 0.22% to $110.58. Market Vectors Gold Miners (ETF) (NYSE: GDX) also slipped by 0.31% to $48.95.

 

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Posted-In: employment data US economic dataEconomics Intraday Update