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Stocks End on a Mixed Note as Stronger than Expected Jobs Report Fails to Lift Sentiments

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Stocks ended on a mixed note on Friday as a stronger than expected jobs report for the month of December was overshadowed by worries about the sovereign debt crisis in the euro zone.

The Labor Department on Friday reported that the U.S. economy added more than forecast 200,000 jobs in the month of December as unemployment rate fell to 8.5%. Economists’ had forecast nonfarm payrolls to rise 150,000 and unemployment rate to edge up to 8.7% in December.


Friday’s jobs report followed a stronger than expected ADP jobs report released on Thursday. The ADP jobs report showed that the private sector in the U.S. added 325,000 jobs in the month of December, well above economists’ forecast. The initial jobless claims are also near a 3-year low. The data released this week suggests that the labor market in the U.S. is improving.

The strong U.S. economic data, however, has been overshadowed by worries about the sovereign debt crisis in the euro zone. Yields on Italian and Spanish bonds rose this week, with Italian borrowing costs once again crossing the 7% mark. Investors are also worried about the health of European banks.

The Dow Jones ended the day 0.45% lower at 12,359.92, the S&P 500 ended the day 0.25% lower at 1,277.81, and the Nasdaq ended the day 0.16% higher at 2,674.22.

Consumer Non-Cyclical stocks led the losses in the S&P 500 on Friday, ending the day 0.99% lower. Energy stocks ended the day 0.65% lower, while Basic Materials stocks ended the day 0.62% lower. Financials ended the day 0.71% lower. Consumer Cyclical and Technology were the only sectors to end the day in green. Consumer Cyclical stocks ended the day 0.21% higher, while Technology stocks ended the day 0.16% higher.

Among the major gainers and losers on Friday were Dendreon Corporation (NASDAQ: DNDN), which ended the day 16.29% higher at $12.35, Bank of America Corporation (NYSE: BAC), which ended the day 2.06% lower at $6.18, and PriceSmart Inc. (NASDAQ: PSMT), which ended the day 14.10% lower at $60.63.

 

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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