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Wall Street Poised for Decline after Weak Jobs Report

Friday, 06 Jul 2012 09:03 AM

Wall Street was poised to open lower on Friday after a payrolls report that showed U.S. employers hired at a dismal pace in June.

The Labor Department said non-farm payrolls expanded by just 80,000 jobs in June, falling short of forecasts. The data raised pressure on the Federal Reserve to do more to boost the economy, and imperiled President Barack Obama's chances of reelection in November.

The 80,000 jobs added in June was "a poor number and a very political number and it will not sit well with the market," said Jeff Savage, regional chief investment officer for Wells Fargo Private Bank in the Northwest in Portland, Oregon.

"There is no question that the QE3 conversation becomes very alive in the coming days and weeks."

In Europe, Spanish 10-year government bond yields extended their rise above 7 percent Friday, with investors dumping risky assets on worries about the efficiency of the anti-crisis tools available at the moment. Ten-year Spanish yields were 22 basis points higher on the day at 7.006 percent.

S&P 500 futures fell 9.6 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration of the contract. Dow Jones industrial average futures lost 70 points and Nasdaq 100 futures declined 12.5 points.

The hunt for Yahoo Inc's next chief executive appears to have narrowed to two candidates: Current interim CEO Ross Levinsohn and Hulu CEO Jason Kilar.

Buyout firm KKR plans to take over German cutlery and coffee machines maker WMF AG for at least 587 million euros ($727 million).

Goldman Sachs has secured three properties in Tokyo for 25 billion yen ($313 million) as its asset management unit prepares to set up a private real estate investment trust.

Skyrocketing sales of the Galaxy smartphone drove a record quarterly profit of $5.9 billion at Samsung Electronics. This is likely to stretch the firm's lead over rivals Apple and Nokia.

After the S&P 500 index's strongest three-day run this year, investors stepped back on Thursday, leaving the broad index and the Dow modestly lower. The Dow Jones industrial average fell 0.4 percent, the Standard & Poor's 500 Index dropped 0.5 percent and the Nasdaq Composite Index ended flat.

© 2017 Thomson/Reuters. All rights reserved.

   
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2012-03-06
Friday, 06 Jul 2012 09:03 AM
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