NST Online Business Times : latest
NST Online Business Times : latest |
| Good US jobs data fail to lift stocks Posted: 02 Nov 2012 05:35 PM PDT NEW YORK: An encouraging October jobs report gave shares an early bump Friday but the gains were all quickly lost and the main indices ended in the red, as caution grew ahead of next Tuesday's election. Although the jobless rate ticked up to 7.9 per cent, the fact that the economy could pump out 171,000 net new jobs last month was seen as good for President Barack Obama and a negative for challenger Mitt Romney, the Wall Street favourite. The markets also were pulled down by Apple's 3.3 per cent fall, amid a lukewarm reception for its new iPad mini. The Dow Jones Industrial Average finished down 139.46 points (1.05 per cent) at 13,093.16. The jobs data was a good sign for the economy, analysts said. "The October payroll survey showed a brighter picture of the labor market, both in faster headline job creation and in upward revisions to previous months," said Nigel Gault of IHS Global Insight. In stocks, insurer AIG fell 7.2 per cent despite its third-quarter earnings handily beating estimates as the company swung into the black, earning $1.9 billion. But worries about the costs to the economy from Hurricane Sandy, which could lead to insured losses industry-wide of $20 billion according to estimates, kept a cloud over the shares. "We are seeing continued momentum, and we're building for the future by creating a more streamlined, efficient, and nimble company," AIG chief executive Robert Benmosche said in a statement. Other insurers took a hit. Hartford Financial fell 3.0 per cent, and Travelers 0.9 per cent. Power companies hit by extended outages in the storm sank: Exelon fell 2.4 per cent, Con Ed lost 0.9 per cent and New Jersey's PSEG was down 0.2 per cent. Mining companies weakened amid a sharp fall in gold prices: Freeport McMoRan lost 3.1 per cent and Newmont Mining lost 8.4 per cent. Chevron, the oil giant, dropped 2.8 per cent after reporting a fall in quarterly profit due to lower crude output. Among gainers, Starbucks added 9.1 per cent after turning in strong earnings and boosting its dividend. -- AFP |
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