Two of the benchmarks on Wall Street, the S & P 500 and Nasdaq closed today its worst week of the year dragged by the disappointing creation data U.S. jobs last month, which questioned the strength of economic recovery.
The S & P 500 is made 1.61% on Friday, which accumulated a weekly loss of 2.44%, while the Nasdaq composite index experienced its biggest drop year-daily 2.25% – to finish its worst week with a drop of 3.68%.
Meanwhile, the Dow Jones Manufacturers, the main reference of the parquet New York, also dressed in red today from the first minute of the contracts and closed down 1.27% to the 13,038.27 points, but did not record its worst week of the year despite accumulating a decline of 1.43%.
Investors Yorkers were like a bucket of cold water expected report on job creation in April, confirming that the labor market slows its expansion to add 115,000 jobs in April, the smallest gain in six months and far from the 160,000 predicted by analysts.
That slight gain allowed the unemployment rate be reduced to a tenth to 8.1%, representing the lowest level since January 2009, but investors were not impressed by that fact, since it is mainly there are fewer people who actively sought a job.
The data strongly beat the optimism that had prevailed among investors New Yorkers at the start of the year, built mainly of monthly employment earnings in excess of 200,000 jobs that had been seen as a sign of economic recovery.
But with these data in hand, Wall Street is not so confident about the evolution of the world’s largest economy, to which are attached lingering doubts about the situation in the euro area in a day that became known that the activity the services sector in the region fell in April.
To all this is added the fear among investors New Yorkers about the potential political instability that could arise from the general election to be held this weekend in France and in Greece, while the European Central Bank is no sign that it will of monetary stimulus measures.
Against this background, most of the squares of the Old Continent closed the day with sharp declines: Frankfurt lost 1.99%, 1.93% London, Paris and Milan 1.9% 1.41%, although Madrid was saved with a rise of 0.35%.
The disappointing data on U.S. labor market had a particular impact on the price of Texas crude, which posted its biggest drop in year-of 3.94% – and lost the symbolic dimension of $ 100 a barrel for the first time since February past to put in $ 98.49.
The fall of oil hit energy sector particularly Wall Street, which left the 2.14% overall, with sharp declines among the oil companies that make up the Dow Jones: Chevron (- 2.14%) and Exxon Mobil (-1.26%).
The corporate earnings season was muted this time, so could not bring encouraging news to change the course of the day, though investors had continued to hold today that the accounts presented LinkedIn’s Eve with a rise of over 7% .
The social network for professionals profits doubled to 5 million in the first quarter and announced the purchase of the SlideShare website for 118.8 million dollars, generating even higher expectations for the expected IPO in mid Facebook of the month.
Next week we will know the accounts of important companies such as Walt Disney, Cisco Systems and News Corporation and other macroeconomic data to take the pulse of the U.S. economy, as Preliminary data from the University of Michigan’s consumer confidence.
Category: Stock Market Trading