Friday, June 4: SUMMARY:
So often the street awaits good numbers and then responds contrary to expectations. Such was the case today as the government’s highly anticipated employment report showed the fastest month-over-month job growth in over 10 years, the figures still fell short of the Street’s expectations which initiated another huge sell-off. The Labor Department said nonfarm payrolls rose by 431,000 last month, missing economists’ consensus estimate for an increase of 515,000 jobs. And from Europe, Hungary was the latest debt-riddled country to take the spotlight as its prime minister’s spokesman attempted to calm fears of Greek-like fiscal problems. This news only added to the already bearish sentiment, sending both the Dow Jones Average and the S&P 500 well below round number support.
The Dow Jones Industrial Average (DJIA – 9,931.97) finished with a deficit of 323.31 points, or 3.2%. As a result of today’s triple-digit loss, the blue-chip barometer ended beneath the 10,000 level for only the third time since November 2009, extending its weekly decline to 2%.
Following suit, the S&P 500 Index (SPX – 1,064.88) gave up 38 points, or 3.4%, marking the sixth Friday in eight weeks the index has given up more than 1%. The SPX also gave up psychological support, finishing below the 1,100 level. For the week, the SPX lost 2.3%.
The Nasdaq Composite (COMP – 2,219.17) suffered the most, falling 83.9 points, or 3.6%, and a weekly loss of 1.7%.
Crude futures suffered their largest single session drop since early February today as July-dated crude oil lost $3.10, or 4.1%, to finish at $71.51 per barrel. For the week, the front-month contract gave up 3.3%.
Gold futures capitalized as a down day in the broader equities market sent traders flocking to the metal. Additional impetus was supplied by data that showed a 15% decrease in gold-mine production in South Africa in the first quarter of 2010, sparking supply-related concerns. At the close, gold for August delivery advanced $7.70, or 0.6%, to finish at $1,217.70 an ounce. For the week, the yellow metal added 0.3%.
