Stocks Plummet Amid Rising Oil Prices and Unrest in Middle East and North Africa

Strategic Insights -

Rising oil prices and unrest in the Middle East and North Africa have sent stocks firmly into negative territory, despite a smaller-than-expected increase in non-farm payrolls and a decline in unemployment to its lowest rate since April 2009. The Dow and S&P 500 are up on the week, but losses this morning come after a strong session on Thursday, which followed two signs of job market improvement. The U.S. added 192,000 nonfarm jobs last month, slightly lower than expectations, and the unemployment rate fell to 8.9% from 9%, below the expected 9.1%.

Key Takeaways:

  • The Dow and S&P 500 are up on the week, despite losses this morning.
  • The U.S. added 192,000 nonfarm jobs last month, slightly lower than expectations.
  • The unemployment rate fell to 8.9% from 9%, below the expected 9.1%.
  • Johnson & Johnson (JNJ) shares are down 0.26% after a warning from the FDA about the risk of birth defects associated with the epilepsy drug Topamax.
  • Apple (AAPL) shares are down as the company is in negotiations with music companies to allow iTunes customers to have simpler access to music they've purchased across multiple devices.
  • Toyota Motor (TM) is down after Standard & Poor's slashed its credit rating due to weak profitability and a slow recovery pace.
  • Goldman Sachs Group, Inc. (GS) and Citigroup Inc. (C) shares are down after Bank of America Merrill Lynch downgraded the stocks to "neutral" from "buy".
  • Infosys Technologies Ltd. (INFY) is lower after issuing its outlook, forecasting an 18% to 20% gain in revenue in the next fiscal year.
  • Deutsche Bank (DB) shares are down after CEO Josef Ackermann expressed concern about splintered regulatory regulations posing a risk to the world's economy and financial system.
  • Wal-Mart Stores Inc. (WMT) is down fractionally after concern about oil prices weighing on the economy and consumer spending overshadowed a 21% increase in its annual dividend.

Statistics:

  • 192,000 nonfarm jobs added in the U.S. last month, slightly lower than expectations.
  • 8.9% unemployment rate, below the expected 9.1%.
  • The unemployment rate has fallen to its lowest rate since April 2009.
  • JNJ shares are down 0.26% after a warning from the FDA.
  • AAPL shares are down as the company negotiates with music companies.
  • Toyota Motor's credit rating was slashed by Standard & Poor's.
  • Goldman Sachs Group, Inc. (GS) and Citigroup Inc. (C) shares are down after being downgraded to "neutral" from "buy".
  • Infosys Technologies Ltd. (INFY) forecasts an 18% to 20% gain in revenue in the next fiscal year.
  • Deutsche Bank (DB) shares are down after CEO Josef Ackermann expressed concern about regulatory regulations.
  • Wal-Mart Stores Inc. (WMT) dividend increased by 21% to $1.46 per year.

Sources:

  • "MidnightTrader via COMTEX"
  • "MarketWatch"
  • "Bloomberg"
  • "Wall Street Journal"
  • "Thomson Reuters"
  • "AP"
  • "Comtex News Network, Inc."