By Victor Reklaitis and Anora Mahmudova, MarketWatch
U.S. adds 209,000 jobs in July; unemployment rate at 6.2%
NEW YORK (MarketWatch) -- U.S. stocks on Friday built on the
week's losses, leaving the S&P 500 with its biggest weekly drop
in two years.
Friday's flurry of economic data only briefly lifted the stock
market. Instead, Thursday's selloff, sparked in part by signs of
rising wages, continued as investors remained fearful that the
Federal Reserve might raise interest rates sooner than
expected.
The S&P 500 (SPX) fell 5.52 points, or 0.3% to end at
1,925.15, though it finished off its session low. The benchmark
endured a weekly loss of 2.7%, its largest percentage drop since
the week ended June 1, 2012. It's now off 3.2% from its July 24
record close.
The Dow(DJI) dropped 69.93 points, or 0.4%, to finish at
16,493.37 on Friday. The blue-chip gauge recorded a weekly tumble
of 2.8%, its biggest decline since the week ended Jan. 24.
Friday's generally positive economic data keeps pressure on the
Federal Reserve to reduce its stimulus measures that have helped
stock prices, said Colin Cieszynski, chief market strategist at CMC
Markets.
"Good news for the economy is bad news for the market, because
it means they'll have to take way the liquidity that's boosted
stocks eventually," Cieszynski told MarketWatch.
Check out a recap of MarketWatch's stock-market live blog for
Friday.
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The tech-heavy Nasdaq Composite (RIXF) was down 17.13 points, or
0.4%, to close at 4,352.64, leaving it down 2.2% for the week.
The small-cap Russell 2000(RUT) shed 5.21 points, or 0.5%, to
end at 1,114.86. The Russell, often viewed as a gauge of investors'
risk appetite, finished down 2.6% for the week and briefly traded
as much as 8.8% off its July 1 intraday high.
Friday's key economic reports: The U.S. economy added 209,000
jobs in July, missing forecasts but signaling the economy is
sustaining its momentum.
The Institute for Supply Management's manufacturing index rose
more than expected, and a reading on consumer sentiment slipped
slightly, but was roughly in line with expectations.
Individual movers & shakers: LinkedIn Corp.(LNKD) closed up
11.7% after the careers-focused social network posted quarterly
results late Thursday that easily topped Wall Street forecasts.
Procter & Gamble Co.(PG) finished up 3%, performing the best
among the 30 Dow stocks. The world's largest consumer products
company announced plans to shed brands, along with earnings that
beat forecasts. Meanwhile, Western Union Co.(WU) and PerkinElmer
Inc.(PKI) led S&P 500 decliners, as each stock dropped nearly
4%. Western Union's quarterly profit dropped, and earnings at
PerkinElmer, a manufacturer of health-testing equipment, also
fell.
Among new issues, Mobileye(MBLY), which makes camera-based
driver-assistance systems, soared 48% in its debut, but June's hot
IPO, GoPro Inc.(GPRO), fell 14.6% after its earnings as investors
focused on lofty valuations. Read more about Friday's jumpiest
stocks in the Movers & Shakers column.
Other markets: In Europe, Germany's DAX ended down 4.5% for the
week, its biggest weekly loss in two years, as investors continued
to fret about the impact of sanctions against Russia. Crude-oil
futures(CLU4) lost ground, while gold futures(GCU4) advanced.
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