Jobs Report: Friday's Headlines

The U.S. economy loses 131,000 jobs in July as private employers add only 71,000 jobs.
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BOSTON (TheStreet) -- Here are the top stock market headlines for the morning of Friday, August 6, 2010.

Friday's Early Headlines

  • Economy Loses 131,000 Jobs in July -- The Labor Department said nonfarm payrolls fell by 131,000 last month, a larger decline than the 87,000 economists had predicted. June's loss of 125,000 jobs was revised to a larger decline of 221,000. Private employers added 71,000 workers, below market estimates and fewer than the total needed to lower the unemployment rate from 9.5%. The overall decline came due a decline in temporary workers hired for the Census.
  • BP Completes Cementing of Gulf Oil Well -- BP (BP) - Get Report said late Thursday it has completed cementing operations as part of the static kill procedure on the oil well in the Gulf of Mexico. The company said it will continue to work with the government in its well relief operations. "Depending upon weather conditions, mid-August is the current estimate of the most likely date by which the first relief well will intercept the Macondo well annulus," BP said in a statement.
  • Bank of America Wants Release from Restrictions: Report -- Bank of America (BAC) - Get Report wants to be released for a memorandum of understanding, or secret U.S. sanctions imposed on the bank during the height of the financial crisis, The Wall Street Journal reports, citing people familiar with the situation. The secret restrictions have been in place for 15 months, placing the bank under increased scrutiny and preventing it from raising its dividend, the Journal reports. While the bank has had talks with the Federal Reserve and the Office of the Comptroller of the Currency, regulators are keeping the restrictions in place, the report adds.
  • Goldman May Announce Prop Trade Spinoff: Report -- Goldman Sachs (GS) - Get Report is considering spinning off its proprietary trading activities, or at least a significant portion of it, due to the financial reform legislation, and an announcement may come as early as Friday, CNBC reports. Goldman first plans to spin off its Principal Strategies Unit (GSPS) from its Equities Division, the report said, citing people familiar with the matter.
  • RIM's Saudi Talks Progressing: Report -- Talks between Research In Motion (RIMM) and Saudi Arabia are progressing, according to Reuters, as the kingdom's BlackBerry ban nears. The report, which cited a source close to the negotiations, added that Saudi Arabia had yet to carry out threats to cut BlackBerry's messenger service early Friday morning. Earlier this week, the United Arab Emirates said it plans to suspend email and browsing services for RIM's BlackBerry on Oct 11, citing judicial, social and national security concerns.
  • China Unicom To Sell Wi-Fi iPhones -- Chinese telecom giant China Unicom will start selling Apple (AAPL) - Get Report iPhones with Wi-Fi capabilities next week, according to a report by The Associated Press. China Unicom has been selling iPhones since late last year. The early versions of the iPhone offered, however, lacked Wi-Fi connections as a result of Chinese government regulations, which have since been eased.

Friday's Earnings Roundup

  • American International Group (AIG) - Get Report said it had a second-quarter loss of $3.96 a share, although the insurer earned $1.99 a share after adjusting for a $3.3 billion noncash goodwill impairment charge. Analysts polled by Thomson Reuters expected a profit of 99 cents a share in the quarter.
  • Kraft Foods (KFT) said it had second-quarter adjusted earnings of 60 cents a share on sales of $12.25 billion, compared with the Thomson Reuters average estimate for earnings of 52 cents a share on revenue of $12.33 billion. Kraft said it expects full-year earnings of at least $2 a share, compared to the consensus estimate for earnings of $2.03 a share.

-- Written by Robert Holmes in Boston

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