Stocks plunged more than 2% losses after a U.S. jobs report showed slim growth in May. The U.S. economy added only 69,000 jobs in May, while economists expected an increase of 165,000. The unemployment rate edged up to 8.2% from 8.1% as more people entered the workforce. The ISM manufacturing index fell to 53.5% in May, sliding below 54% expected. The technology sector joined a broad market retreat with Hewlett-Packard highlighted the declines tumbling 6.3% as the co. took a hit from an analyst downgrade. Jefferies cut its rating to hold from buy citing worries that tablets will hurt PCs, smartphones will hurt printers, and European uncertainty will hurt enterprise IT spending. In the coming week, investors will closely watch any updates on Greece’s commitment to remaining in the euro zone, the Fed’s Beige Book, factory orders, the ISM services index for April, first-quarter productivity and labor cost figures, April trade deficit and wholesale inventories data. Implied volatility surged above the 27 level on huge trading volumes.
Monday, June 4, 2012
Europe and Fed-watching in focus
Stocks plunged more than 2% losses after a U.S. jobs report showed slim growth in May. The U.S. economy added only 69,000 jobs in May, while economists expected an increase of 165,000. The unemployment rate edged up to 8.2% from 8.1% as more people entered the workforce. The ISM manufacturing index fell to 53.5% in May, sliding below 54% expected. The technology sector joined a broad market retreat with Hewlett-Packard highlighted the declines tumbling 6.3% as the co. took a hit from an analyst downgrade. Jefferies cut its rating to hold from buy citing worries that tablets will hurt PCs, smartphones will hurt printers, and European uncertainty will hurt enterprise IT spending. In the coming week, investors will closely watch any updates on Greece’s commitment to remaining in the euro zone, the Fed’s Beige Book, factory orders, the ISM services index for April, first-quarter productivity and labor cost figures, April trade deficit and wholesale inventories data. Implied volatility surged above the 27 level on huge trading volumes.
