This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks Fall on Disappointing U.S. Jobs Growth

NEW YORK ( TheStreet) -- Stocks settled firmly in negative territory Friday after a dismal May jobs report came in even worse than the market's lowered expectations.

The Dow Jones Industrial Average fell 98 points, or 0.8%, to settle at 12,151. The S&P 500 was lower by 13 points, or 1%, at 1300, and the Nasdaq was off by 41 points, or 1.5%, at 2733.

The U.S. economy added 54,000 jobs in May , which was well below the job growth of 169,000 that economists had been anticipating, according to May's weak growth is a big comedown from April's increase in nonfarm payrolls of 232,000.

The unemployment rate ticked up to 9.1%, disappointing expectations that it would remain unchanged at 9%. Hourly earnings rose 0.3%, which was slightly higher than the uptick of 0.2% that economists had been expecting, and higher than April's increase of 0.1%. The average work week came in at 34.4 hours, which was unchanged from April's upwardly revised level.

"April's jobs number was actually a five-week reporting period, so May's report was set up to be weaker anyway, and we're getting some noise from Japan, the tornadoes and cold, rainy weather than impacted retail sales," said Mark Lamkin, CEO and chief investment strategist at Lamkin Wealth Management, a division of LPL Financial.

"I think we've just hit a soft spot. This is not the start of another recession," he said. "The bottom line is we're still adding jobs. It's not going to be a straight-line recovery."

Nonmanufacturing activity picked up in May, according to the Institute for Supply Management. The ISM's services index rose to 54.6, exceeding the reading of 53.3 that economists had been expecting, according to May's level compares with April's reading of 52.8.

The FTSE in London added 0.1% and the DAX in Frankfurt ticked up 0.5%. Japan's Nikkei lost 0.7% while Hong Kong's Hang Seng shed 1.3%.

Weakness was widespread across industries. On the Dow, JPMorgan Chase (JPM - Get Report), Bank of America (BAC - Get Report) and Wal-Mart (WMT - Get Report) traded near the top, while Walt Disney (DIS - Get Report), Alcoa (AA) and DuPont (DD - Get Report) were the biggest laggards.

Of the 760 million shares that traded on the New York Stock Exchange, only 22% rose, while 76% declined. On the Nasdaq, 1.70 billion shares traded hands.

Newell Rubbermaid (NWL) cut its 2011 outlook to a range of $1.60 to $1.67 a share , from $1.67 to $1.70, previously, citing disappointing economic conditions and weak consumer spending trends in the U.S. The stock dropped 11.8% to $14.97.

Shares of GT Solar International (SOLR) soared 12.5% to $13.53 after it received a $460.4 million order for its advanced sapphire crystallization furnaces from a China-based manufacturing company new to the LED industry.

Electric vehicle maker Tesla (TSLA) saw its stock gain 4.7% to $30.13 after raising $152.4 million in a secondary offering .

The Treasury Department agreed to sell its 6% stake in Chrysler to Italian automaker Fiat for $500 million. The deal would bump Fiat's stake in Chrysler up to 52% , making it the largest shareholder.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $11.95 0.00%
CSCO $25.11 0.00%
DD $58.40 0.00%
DIS $91.15 0.00%
JPM $57.49 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs