Markets React At Opening To Monthly Job Numbers
Spencer Platt/Getty Images
By Caroline Valetkevitch

NEW YORK -- U.S. stocks ended lower for a second day and the S&P 500 posted its biggest weekly decline since 2012 on Friday as concerns over Argentina's default continued to dog sentiment.

Data showing U.S. job growth slowed in July and the unemployment rate unexpectedly rose suggested the Federal Reserve has room to keep interest rates low for a while.

The jobs growth, which came in below economists' forecasts, relieved some investors worried about how soon the Fed could bump up interest rates after data on Thursday showed U.S. labor costs recorded their biggest gain in more than 5½ years in the second quarter.

But concern remained over Argentina's debt problems after the country's default earlier this week. A U.S. judge on Friday criticized Argentina's decision to default and ordered negotiations between the country and holdout investors to continue.

"Anytime a country defaults on its debt, it's usually an unnerving event in the market. The risk-aversion people sell risky assets," said Natalie Trunow, chief investment officer of equities at Calvert Investment Management in Bethesda, Maryland.

But Trunow said the market dips should be seen as buying opportunities. "I don't think we're anywhere near the end of the expansion cycle."

Seven of the 10 S&P 500 sectors ended lower, with S&P financials among sectors with the biggest losses. JPMorgan Chase (JPM) shares were down 2.1 percent at $56.48.

The Dow Jones industrial average (^DJI) fell 69.93 points, or 0.42 percent, to 16,493.37, the Standard & Poor's 500 index (^GPSC) lost 5.52 points, or 0.29 percent, to 1,925.15, and the Nasdaq composite (^IXIC) dropped 17.13 points, or 0.39 percent, to 4,352.64.

For the week, the S&P 500 fell 2.7 percent, its biggest weekly percentage loss since the week ending June 1, 2012. The Dow ended down 2.8 percent for the week, while the Nasdaq fell 2.2 percent.

The Dow's losses dragged it further into negative territory for the year. For the year-to-date, it is down 0.5 percent.

Shares of Procter & Gamble (PG), the world's largest maker of household products, rose 3 percent to $79.65 and helped to support the Dow and S&P 500 after it said it could sell about half of its brands in the next two years and cut jobs.

Electric carmaker Tesla Motors (TSLA) second-quarter revenue nearly doubled from the prior year, while its adjusted earnings topped expectations. Shares rose 4.5 percent to $233.27.

In other economic data Friday, a report from the Institute for Supply Management showed that manufacturing had its fastest expansion in more than three years in July.

About 7.2 billion shares changed hands on U.S. exchanges on Friday, above the 6.2 billion average for the last five days, according to data from BATS Global Markets.

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August 02 2014 at 12:37 AM Report abuse +1 rate up rate down Reply

Democrats say:

Vote for us 'cause we're your friends.
We'll try that Social-ism again.
We'll spend until we're out of debt.
Then we'll spend some more, you bet.
We are all just spending fools.
Vote for us 'cause idiots rule.

August 01 2014 at 11:02 PM Report abuse -2 rate up rate down Reply

Watching Dopey try to understand economics is very amusing.

August 01 2014 at 10:14 PM Report abuse -1 rate up rate down Reply

How ironic your username is "thefacts", yet you only know completely untrue lies. FACTS do not back up anything you are saying. Only more Fox News drivel that simply has no basis. Typical.


Another "yes we can chanting" Obamite who suffers from Foxophobia.

August 01 2014 at 8:27 PM Report abuse +2 rate up rate down Reply

The Civilian Non Institutional Population age 16 and over was was rapidly growing even as the employed hit a peak numbers before the great recession. Even during these peak employment years people were losing jobs.

The participation rate is so low it stands to reason that millions of people are being kept out of the work force for lack of jobs.

The stocks slumped today but they had been rocketing up wards regardless of the job situation because of foreign investments and the FEDs not raising Interest rates.

August 01 2014 at 8:22 PM Report abuse +2 rate up rate down Reply

If they keep pushing Putin into a corner .... we may have alot of very cold people in Western Europe with no natural gas in the pipe .....ZERO ..... not to mention 1.8 million Palestinians with no heat ... Winter is 12 weeks away .........!

August 01 2014 at 8:08 PM Report abuse -1 rate up rate down Reply

OK, well here we go again. This site wants to bombard us with financial advice when what we really need to concentrate on are stories like: Bear Saves Drowning Crow -- And Doesn't Eat It

or why I buy two ply toilet paper or even how coffee pots give me germs.

Can we get on to these stories and leave the finances for the one percent to manage?

August 01 2014 at 8:03 PM Report abuse -1 rate up rate down Reply

It is really sad that we cannot believe anything nowadays!

August 01 2014 at 4:52 PM Report abuse +2 rate up rate down Reply

Everyday I read a financial article that states "unexpected drop", or "profit lower than expected" and so on and so on. I am perplexed due to the fact that these so called "experts" are NEVER right and are ALWAYS caught off guard!! How stupid are we, as Americans to keep believing this B.S.??? I mean we have the SEC to guard Wall Street and I do not remember a single person there warning us that EVERY bank in the USA was going under in 2008. I mean if you could not see that coming what the F___ are you doing. How did the ass hat president purpose to fix this? Hire more people at the SEC. Really????? We are now just in another "boom and bust" cycle to which Wall Street and all the politicians will make huge fortunes from as they continue to create the policies. Does anyone think Dodd Frank is going to make any difference??? How about bringing back Glass Steagall????? Oh, no one knows what that is???? Well, I guess there is another reason they can keep getting over on us, we don't pay attention. Just sayin'

August 01 2014 at 4:45 PM Report abuse +8 rate up rate down Reply

BUT, Obama is spiking football at the end zone, GDP is ~4.0%, but DOW is in downward trained.

August 01 2014 at 4:41 PM Report abuse rate up rate down Reply