US Stocks Fall Despite Strong Jobs Data

Strategic Insights -

US stocks were initially expected to rise following better-than-expected job numbers that sent unemployment to its lowest level since February 2009. However, investors were left unimpressed as the Dow Jones Industrial Average, S&P 500, and Nasdaq failed to show significant gains. Despite this, European stocks were rising, led by Germany's DAX and London's FTSE. Japan's Nikkei Average and Hong Kong's Hang Seng, however, fell.

Key Takeaways:

  • US stocks fell despite strong job numbers, with the Dow Jones Industrial Average down 50 points, or 0.4%, at 12,366.
  • The S&P 500 was falling 4 points, or 0.3%, to 1,277, while the Nasdaq was 3 points lower, or 0.1%, at 2,667.
  • European stocks were rising, led by Germany's DAX and London's FTSE, despite a decline in consumer confidence in the eurozone.
  • Alcoa announced plans to reduce global smelting capacity by 12% and record fourth-quarter restructuring charges of $155 million to $165 million.
  • Bank of America shares fell 3.6% to $6.09 after speculation about potential mortgage refinancing help from the federal government failed to materialize.
  • RF Micro Devices warned of a revenue shortfall in its fiscal third quarter, citing weaker-than-expected sales of 2G components to China-based customers.
  • Ford announced plans to open a new research lab in Silicon Valley early this year to drive innovation in mobility.
  • Citigroup ceased talks to sell its OneMain consumer-lending subsidiary after failing to reach an agreement with potential buyers.

Statistics:

  • Unemployment rate at its lowest level since February 2009.
  • Dow Jones Industrial Average down 50 points, or 0.4%, at 12,366.
  • S&P 500 falling 4 points, or 0.3%, to 1,277.
  • Nasdaq down 3 points, or 0.1%, at 2,667.
  • Germany's DAX up less than 0.1%.
  • London's FTSE up 0.8%.
  • Japan's Nikkei Average fell 1.16%.
  • Hong Kong's Hang Seng was down 1.17%.
  • Alcoa's global smelting capacity reduced by 12%.
  • Bank of America's share price fell 3.6% to $6.09.
  • RF Micro Devices' revenue forecast down 10% from analysts' estimate.
  • Ford plans to open a new research lab in Silicon Valley early this year.
  • Citigroup ceased talks to sell its OneMain consumer-lending subsidiary.

Sources:

  • TheStreet
  • The Wall Street Journal
  • Thomson Reuters
  • Reuters