By Anora Mahmudova and Carla Mozee, MarketWatch
Bally Technologies soars on deal with Scientific Games
NEW YORK (MarketWatch) -- The U.S. stock market struggled to
find direction as investors digested a number of economic reports
including data on job gains, manufacturing and consumer sentiment
as well as earnings results.
The monthly jobs report came in weaker than expected, but
nonetheless indicated the economy is growing at a moderate pace,
and the Federal Reserve is unlikely to raise interest rates sooner
than expected.
The S&P 500 (SPX) was flat at 1,930.69 but still on track to
record a hefty weekly loss. The Dow Jones Industrial Average (DJI)
was lower by 25 points, or 0.1%, and set to record a loss over the
week. The Nasdaq Composite (RIXF) was down 5 points, or 0.1%, at
4,364.64 and was set to finish the week lower.
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action.
U.S. adds 209,000 jobs in JulyMAMBMCMEMG
Liz Ann Sonders, chief investment strategist at Charles Schwab
said the fact that the jobs report was not too hot and not too cold
has alleviated fears that the Fed might start raising rates sooner
than previously thought.
"Friday's selloff was due to a combination of things, among them
a pick-up in employment costs. But today's wage growth numbers did
not confirm that we are seeing wage inflation," Sonders said.
"But if the weakness follows on and we see a pullback, it would
be healthy as bull markets need corrections," she added.
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.
Investors also are reacting 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.
Need to Know for Friday: Don't be a hero and a call for the
S&P 500 to hit 2,500.
Company news
Investors focused on earnings results as well as reacted to
monthly auto sales.
LinkedIn Corp. (LNKD) shares soared 11% 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%.
CarMax Inc. (KMX) shares rose 2.4% as auto makers like General
Motors Co. GM and Ford Motor Co. F reported strong sales in July.
Shares in GM and Ford were slightly lower.
Shares of Mobileye (MBLY), which makes camera-based
driver-assistance systems in cars, will make their trading debut on
the New York Stock Exchange. The shares late Thursday priced at $25
a share, above an expected range of $21 to $23 a share. Also read:
Four things to know about Mobileye.
GoPro Inc. (GPRO) posted better-than-expected second-quarter
results late Thursday, but the shares fell 11%, giving back some of
their 30% increase since their June debut.
Deal news sent shares of Bally Technolgoies Inc. (BYI) up 33%.
Shares of Scientific Games Corp. (SGMS) eased 3% after it announced
plans to buy Bally in a deal worth around $5.1 billion. Read more
about today's notable movers in Movers & Shakers column.
In Europe, stocks were down, but generally well off their lows
after the jobs data. 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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