Markets |
Strong jobs report gives Wall St. second straight losing
week
DJ: 17,849.46 -56.12 NAS: 5,068.46
+9.33 S&P: 2,092.83
-3.01
(Reuters) The Dow and S&P 500 eased on Friday as increasing expectations
the Federal Reserve could raise rates as soon as September offset optimism over
a recovery in the U.S. labor market.
Stronger-than-expected jobs data for May and a pickup in wages
were the latest signs of better momentum in the economy.
Wall Street's top banks said they expect the Fed to begin
raising interest rates in September, followed by another increase before the
end of the year, according to a Reuters poll.
"The market is excited about stronger jobs and higher
wages, but before (investors) can pop the cork of the champagne bottle, they
start thinking about the hangover, which is higher interest rates," said
Eric Kuby, chief investment officer at North Star Investment Management in
Chicago.
"I think everyone is just waiting to see what happens when
rates do start to rise."
The S&P utilities index .SPLRCU, which includes top dividend
payers that tend to fall as prospects for higher rates rise, was down 1.3
percent and among the weakest-performing sectors. The U.S. benchmark bond yield
hit its highest since October.
S&P financials .SPSY, which benefit from higher rates, were
up 0.6 percent, among the day's best performing sectors, while the S&P
energy index .SPNY added 0.7 percent. Energy shares bounced with oil prices.
The Dow Jones industrial
average .DJI fell 56.12 points, or 0.31 percent, to
17,849.46, theS&P 500 .SPX lost 3.01 points, or 0.14 percent, to
2,092.83 and the Nasdaq Composite.IXIC added 9.33 points, or 0.18 percent, to
5,068.46.
For the week, the S&P
500 fell 0.7 percent, its second
straight week of losses, the Dow was down 0.9 percent and the Nasdaq was down 0.03 percent.
The Fed has kept overnight rates near zero since December 2008
because the economic recovery has been slow. Cheap credit, however, has helped
bolster the U.S. stock market.
New York Fed President
William Dudley said he was concerned the economy may not be growing fast
enough to absorb the slack among workers sidelined by the financial crisis.
Still, Dudley said he expects
the Fed would be in a position to raise rates later this year.
Boosting the Nasdaq,
shares of Regeneron Pharmaceuticals Inc (REGN.O) rose
4 percent to $539.40 after a preliminary FDA review of an experimental drug it
makes with Sanofi SA (SASY.PA).
Among decliners on Friday were gold miners, which dropped along
with gold prices. Shares of Newmont Mining (NEM.N) were
down 3.3 percent at $25.91.
Zumiez (ZUMZ.O)
dropped 19.3 percent to $24 as it estimated current-quarter profit and revenue
below analysts' expectations.
NYSE decliners outnumbered advancers 1,629 to 1,426, for a
1.14-to-1 ratio; on the Nasdaq,
1,782 issues rose and 962 fell, for a 1.85-to-1 ratio favoring advancers.
The S&P 500 posted 16 new 52-week highs and six
new lows; the Nasdaq Composite recorded 117 new highs and
42 new lows.
About 6.2
billion shares changed hands on U.S. exchanges, slightly below the 6.3
billion daily average for the last five sessions, according to BATS Global
Markets.
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