By Kristina Peterson
U.S. stocks opened slightly lower on Friday as concerns over
European sovereign debt weighed on the market and investors
digested a mixed jobs report for January.
The Dow Jones Industrial Average (DJI) was down 39 points, or
0.4%, at 9966 in early trading. Boeing (BA)weighed on the Dow, with
the aerospace company down 1.2%.
The measure's strongest performer was Bank of America (BAC), up
1%, after reaching a $150 million settlement with the Securities
and Exchange Commission on Thursday, though the bank still faces
new fraud charges filed by New York Attorney General Andrew
Cuomo.
The Standard & Poor's 500-share index (SPX) was down 0.4%,
with the financial and materials sectors leading. Utilities and
health care kept the gains in check. The tech-heavy Nasdaq
Composite (RIXF) was down 0.1%.
The unemployment rate fell to 9.7% last month from an unrevised
10% in December, the Labor Department said Friday. Economists
surveyed by Dow Jones Newswires had forecast the jobless rate would
edge higher to 10.1%.
While investors had been hoping to see a gain, nonfarm payrolls
fell by 20,000 compared with a revised 150,000 drop decline in
December. Economists had expected payrolls to be flat. The December
figure was revised sharply from an originally reported 85,000 drop.
The Labor Department's annual benchmark revision to the survey
showed that last year job losses were almost 600,000 more than
previously reported.
Average hourly earnings rose to $18.89 in January from $18.84
the previous month and the average workweek was up by 0.1 hour to
33.3 hours.
Meanwhile, anxiety over European sovereign debt continued to
roil world markets.
Stocks plunged Thursday as fears over the economic health of
several European countries sent jitters through global markets. The
Dow lost 268 points and briefly moved below 10,000 for the first
time since early November.
European shares continued to fall Friday, posting losses for the
third straight session as investors fretted about the health of
Greece, Portugal and Spain could lead to a possible debt default or
need for a European bailout. The cost of insuring the government
debt of Greece, Portugal and Spain against default hit fresh record
levels, while prices of their government bonds also dropped
again.
Worries about European sovereign debt also weighed on Asian
markets, with Japan's Nikkei 225 Average losing 2.9% -- its biggest
drop in more than two months.
In other markets, the dollar strengthened against both the euro
and the yen. Crude oil futures crept up above $73 per barrel, while
gold futures slipped. Treasurys (TNX) edged up, with the 10-year
note up 1/32 to yield 3.606%.
Among stocks in focus, Toyota Motor (TM) rose 1.2% in early
trading, after the company's president offered "his heartfelt
apology" over braking systems problems, his first press conference
since the company was hit by a wave of recalls.
Airgas (ARG) shot up 42% after Air Products & Chemicals
(APD) offered $5.1 billion, or $60 a share, for its rival.