Dow Jones: 11,493.57 (–119.96) Nasdaq: 2,546.04 (–33.42) S&P 500: 1,204.42 (–14.47)US STOCKS retreated yesterday, snapping a four-day advance for the Standard and Poor's 500 Index, as banks fell and investors speculated that today's jobs report will show the world's largest economy continues to struggle.
Financial stocks dropped the most within 10 groups in the SP 500, sliding 1.9 per cent.
The Dow Jones industrial average was down 119.96 points, or 1.03 per cent, at 11,493.57.
The Standard & Poor’s 500 Index slid 14.47 points, or 1.19 per cent, at 1,204.42.
The Nasdaq Composite Index fell 33.42 points, or 1.30 per cent, at 2,546.04.
“There is some reserve and perhaps some hesitance going into tomorrow’s jobs report,” Robert Pavlik, chief market strategist at Banyan Partners LLC in New York, said. “The administration has a huge task in front of it to try to create some kind of willingness on part of business leaders to begin hiring. Not only investors, but also the general population is tiring of this.”
Stocks fell before a Labor Department report due out today that may show non-farm payrolls climbed by 65,000 after a 117,000 increase in July, according to economists surveyed by Bloomberg News.
Brian Jones, an economist at Société Générale, lowered his prediction to an increase of 9,000 from 67,000.
Manufacturing data shares rose earlier after the Institute for Supply Management’s factory index fell to 50.6, beating the median economist projection of 48.5. The data helped ease concern spurred by Federal Reserve data in August showing manufacturing slowed in the New York, Philadelphia and Richmond, Virginia, regions.
Goldman Sachs slumped 3.1 per cent to $112.57. The Fed ordered Goldman Sachs to conduct an independent review of Litton’s foreclosures in 2009 and 2010 to address a “pattern of misconduct and negligence”, the regulator said.
Gap lost 2.7 per cent to $16.08. The largest US apparel chain reported sales at its stores open more than one year, fell 6 per cent, more than the 3.9 per cent drop estimated by analysts.
Caterpillar decreased 2.5 per cent to $88.76, while Alcoa slid 1.9 per cent to $12.56. – (Bloomberg)
