Dow Jones: 11,240.26 (–253.31) Nasdaq: 2,480.33 (–65.71) SP 500: 1,173.97 (–30.45):US STOCKS slumped yesterday, wiping out the weekly gain for the Standard and Poor's 500 Index, as a government report showing employment stagnated last month stoked concern the world's largest economy may fall into a recession.
The Dow Jones industrial average fell 253.31 points, or 2.20 per cent, at 11,240.26.
The Standard Poor’s 500 Index was down 30.45 points, or 2.53 per cent, at 1,173.97.
The Nasdaq Composite Index slumped 65.71 points, or 2.58 per cent, at 2,480.33.
“The jobs report was just ugly,” Michael Mullaney, who helps manage $9.5 billion at Fiduciary Trust in Boston, said. “We’ve been watching deceleration of economic activity on a global basis. Does that increase the odds of a recession? It’s a coin toss at this point, 50-50. This will probably push the Federal Reserve over the edge.”
Employment in the US stagnated in August and the jobless rate held at 9.1 per cent as American employers became less confident in the strength of the recovery.
Payrolls were unchanged last month, the weakest reading since September 2010, after an 85,000 gain in July that was less than initially estimated, Labor Department data showed. The median forecast in a Bloomberg News survey called for a rise of 65,000.
Hourly earnings and hours worked both declined. The August data included a 48,000 drop in information industry jobs, mostly reflecting striking Verizon Communications workers.
Caterpillar, the world’s largest construction and mining-equipment maker, slid 3.8 per cent to $85.21. Ford sank 4.7 per cent to $10.34. FedEx tumbled 4.2 per cent to $74.73.
Bank of America tumbled 8.6 per cent to $7.23. JPMorgan retreated 4.6 per cent to $34.65.
Goldman Sachs dropped 5.4 per cent to $106.12. Chevron dropped 2.3 per cent to $96.28, while Alcoa slid 4 per cent to $11.99.
Newmont Mining, the largest US gold producer, added 2.6 per cent to $64.12 after gold jumped amid demand for haven assets.
HR Block lost 12 per cent to $13.30. The US tax preparer reported first-quarter revenue was $267.6 million, missing the analyst estimate of $276.2 million. – (Bloomberg/Reuters)
