Stocks drop after US hiring slows - KSWO 7News | Breaking News, Weather and Sports

Stocks drop after US hiring slows

By STEVE ROTHWELL

AP Business Writer NEW YORK (AP) - Stocks fell on Friday after the government reported that U.S. employers added fewer jobs than forecast for August.

Bond prices rose on the news. The yield on the 10-year Treasury note, which moves in the opposite direction of price, dropped to 2.42 percent from 2.45 percent late Thursday.

KEEPING SCORE: The Standard & Poor's 500 index fell seven points, or 0.4 percent, to 1,990 as of 10:49 a.m. Eastern. The Dow Jones industrial average dropped 57 points, or 0.3 percent, to 17,012. The Nasdaq composite slipped 18 points, or 0.4 percent, to 4,542.

JOBS SLOW: U.S. employers added 142,000 jobs in August, snapping a six-month streak of hiring above 200,000 and posting the smallest gain in eight months, the Labor Department said Friday. The unemployment rate fell to 6.1 percent from 6.2 percent, falling because more people without jobs stopped looking for one and were no longer counted as unemployed. Economists had expected employers to add 220,000 jobs.

THE QUOTE: Some investors pointed out that Friday's news was at odds with reports earlier this week that showed the economy is still strengthening. Construction and the service industry, or example, were strong.

"The preponderance of evidence is that things continue to expand," said John Fox, director of research, Fenimore Asset Management. "This is a blip."

SAD SEPTEMBER: Stocks have fallen during first four trading days of the month after ending August at a record high. September is historically the worst month, according to the stock traders' almanac.

GAP SALES: Gap slumped $2.13, or 4.6 percent, to $44.51 after reporting that a key sales measurement slumped in August. The retailer said sales at stores open at least one year fell 2 percent over the four weeks that ended Aug. 30. Revenue from Gap stores open over that time fell 6 percent. The will pressure the brand's profit margins in September.

STAKE SALE: Another retailer also got hit. Michael Kors fell $3.45, or 4.3 percent, to $76.52 in late morning trading Friday after one of its principal founding stockholders said it was selling its remaining shares in the luxury retailer. Sportswear Holdings had a 5.7 percent stake in the company.

EUROPE: Major stock indexes in Europe were mixed. Britain's FTSE 100 index was down 0.5 percent while France's CAC 40 fell 0.1 percent. Germany's DAX was 0.3 percent higher.

CURRENCIES: The euro rebounded from a slump on Thursday, when the European Central Bank surprised markets by cutting interest rates and announcing a new stimulus program. Europe's single currency rose 0.3 percent to $1.2974 Friday. The dollar was at 105.22 yen after rising as high as 105.71 yen, the highest level since October 2008.

ENERGY: The price of oil edged lower again after slumping Thursday, when a report showed that U.S. crude supplies fell less than expected. Benchmark crude oil was down 44 cents to $94.01 a barrel in New York after falling $1.09 on Thursday.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 

  • Local NewsNewsMore>>

  • Homeland Security drafts plan to end family separation

    Homeland Security drafts plan to end family separation

    Wednesday, June 20 2018 11:21 AM EDT2018-06-20 15:21:21 GMT
    Friday, June 22 2018 3:44 AM EDT2018-06-22 07:44:09 GMT
    A boy stares out of a heavily tinted bus window leaving a U.S. Customs and Border Protection facility Tuesday in McAllen, TX. (AP Photo/Eric Gay)A boy stares out of a heavily tinted bus window leaving a U.S. Customs and Border Protection facility Tuesday in McAllen, TX. (AP Photo/Eric Gay)

    Trump signs executive order to keep families together at border, says 'zero-tolerance' prosecution policy will continue.

    Trump signs executive order to keep families together at border, says 'zero-tolerance' prosecution policy will continue.

  • APNewsBreak: Youngest migrants held in 'tender age' shelters

    APNewsBreak: Youngest migrants held in 'tender age' shelters

    Tuesday, June 19 2018 9:12 PM EDT2018-06-20 01:12:25 GMT
    Friday, June 22 2018 3:43 AM EDT2018-06-22 07:43:04 GMT
    Nicole Hernandez, of the Mexican state of Guerrero, holds on to her mother as they wait with other families to request political asylum in the United States, across the border in Tijuana, Mexico, on Wednesday, June 13, 2018. (AP Photo/Gregory Bull)Nicole Hernandez, of the Mexican state of Guerrero, holds on to her mother as they wait with other families to request political asylum in the United States, across the border in Tijuana, Mexico, on Wednesday, June 13, 2018. (AP Photo/Gregory Bull)

    Migrant babies and young children are being held in special "tender age" shelters after being taken from their parents at the US-Mexico border.

    Migrant babies and young children are being held in special "tender age" shelters after being taken from their parents at the US-Mexico border.

  • S. Korea: Joint US drills suspended to aid talks with North

    S. Korea: Joint US drills suspended to aid talks with North

    Tuesday, June 19 2018 1:50 AM EDT2018-06-19 05:50:33 GMT
    Friday, June 22 2018 3:36 AM EDT2018-06-22 07:36:36 GMT
    (AP Photo/Ahn Young-joon). A photo showing U.S. President Donald Trump and North Korean leader Kim Jong Un is displayed as a member of People's Democratic Party stands to oppose military exercises between the United States and South Korea near the U.S....(AP Photo/Ahn Young-joon). A photo showing U.S. President Donald Trump and North Korean leader Kim Jong Un is displayed as a member of People's Democratic Party stands to oppose military exercises between the United States and South Korea near the U.S....

    South Korea says a joint military exercise scheduled with the U.S. has been suspended to support ongoing talks both countries have with North Korea.

    South Korea says a joint military exercise scheduled with the U.S. has been suspended to support ongoing talks both countries have with North Korea.

Powered by Frankly