By Kristina Peterson
Stocks' losses piled up as buyers rushed to the dollar Friday
afternoon, increasing their safe-haven bets on concerns over
sovereign debt in Europe.
The Dow Jones Industrial Average (DJI) was recently off 131
points, or 1.3%, at 9,871.21, led by a 4.5% decline in General
Electric & Co. (GE). The Nasdaq Composite Index (RIXF) was down
1.1%. The S&P 500 (SPX) fell 1.6%, with every sector trading
lower.
The Dow is poised for its first close below 10,000 in three
months. The blue-chip measure first crossed 10,000 in 1999, but it
has since proven to be one of the toughest round-number levels for
the average to maintain in its long history.
"The sovereign-credit concerns are just overwhelming people
today," said strategist Peter Boockvar, of Miller Tabak. "It's one
big liquidation. People have been hoping there will be one event
that will clear up the problems, but they're having to realize,
it's going to be a process."
The dollar strengthened against the euro, which recently cost
$1.3607, down from $1.3741 late Thursday. The Dollar Index (DXY),
which represents the greenback against a basket of six other
currencies, jumped 0.9%. The dollar has soared as concerns mounted
over fiscal instability in Greece, Portugal and Spain.
Commodity prices slid and Treasury prices climbed as investors
cut back the risk in their portfolios sharply for a second straight
day.
Crude-oil prices were recently down almost $3, hovering just
above $70 per barrel. Gold contracts fell nearly $10 to $1,053.30
per troy ounce. The Dow Jones-UBS Commodity Index was off almost
2%.
The benchmark 10-year note (UST10Y) climbed 18/32 to yield
3.542%.
A much-anticipated employment report was better than some
investors had feared. The U.S. unemployment rate unexpectedly fell
to 9.7% last month from an unrevised 10% in December, the Labor
Department said. Economists expected the jobless rate to edge
higher, to 10.1%.
Still, the jobs data didn't point unequivocally to a
strengthening labor market as the number workers on nonfarm
payrolls continued to edge lower.
"The real impetus is that the economy is not off to the races,"
said David Klaskin, chief investment officer of Oak Ridge
Investments. "Even though we've had some really nice data points,
they don't necessarily reflect a prolonged recovery."
Among stocks to watch, health provider Aetna (AET) slipped 0.2%
after its fourth-quarter earnings fell 15% as the health insurer
recorded higher claims and pension costs.
Airgas (ARG) soared 38% after rival Air Products & Chemicals
(APD) offered $5.1 billion, or $60 a share, for the industrial-gas
company. Air Products shares fell 7.9%.