After Market: Thursday's Good News Is Monday's Bad News

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Wall Street took a slight downward turn Monday as it gave further consideration to last month's strong jobs numbers, and airline and Internet stocks lost altitude as well.

Job growth in June was much higher than expected, which bodes well for the economy, but the worry among some investors is that lower unemployment will lead to the Fed raising interest rates sooner than they'd like. The major indices fell after the Dow topped 17,000 last week.

The Dow Jones industrial average (^DJI) dropped 44 points, the tech-heavy Nasdaq composite (^IXIC) slipped 34 points and the Standard & Poor's 500 index (^GPSC) was down 7 points.

Airline stocks continued their descent after selling off last week. Delta (DAL) was down almost 4.5 percent, United-Continental (UAL) dropped more than 3 percent, and Jetblue (JBLU) fell 2.5 percent.

Internet stocks also had a tough day. Facebook (FB) was down 1.5 percent, Twitter (TWTR) dropped 2.5 percent and Amazon (AMZN) was lower by 1 percent.

But two smartphone makers benefited from good news. Apple (AAPL) gained 2 percent on analyst comments that its June sales were likely strong. The company is also expected to release an iPhone 6 and a smartwatch within the next few months.

And Blackberry (BBRY) popped more than 5.5 percent. Its latest model phones won three prestigious design awards. This is a great comeback story. So far the stock is up 39 percent this year.

One of the biggest gainers of the day was GoPro (GPRO), which rallied close to 6 percent in a rebound from last week's slight sell-off.

PetSmart (PETM) was another winner on the day, up 2.5 percent. A regulatory filing revealed the company is looking into ways to return more cash to shareholders.

Another major gainer was food-processing giant Archer Daniels Midland (ADM) up 1.5 percent. It has offered $3 billion to buy Swiss food company WILD Flavors.

In more mergers and acquisitions news, Expedia (EXPE) is seeking to acquire Australian online travel site Wotif.com for $660 million. Expedia was down 1.5 percent.

Chip maker Applied Materials (AMAT) gained slightly on the back of positive analyst comments.

But coal producer Peabody Energy (BTU) was one of the bigger losers on the day, falling 3.5 percent on a downgrade from Deutsche Bank.

-Produced by Karina Huber.

What to Watch Tuesday:
  • The Labor Department releases job openings and labor turnover survey for May at 10 a.m. Eastern time.
  • The Federal Reserve releases consumer credit data for May at 3 p.m.
These major companies are scheduled to release quarterly financial statements:
  • Alcoa (AA)
  • Bob Evans Farms (BOBE)
  • The Container Store (TCS)

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12 Comments

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kolblh

Yada, Yada, Yada . . . Much sheer effort goes into the truth. Left to itself, it sweeps in like the tide.

July 08 2014 at 3:44 PM Report abuse rate up rate down Reply
Iselin007

The stress created by this fake economy is going to cause illness and death, so maybe some of you have stock in caskets and funeral parlors.

July 08 2014 at 1:57 PM Report abuse rate up rate down Reply
Iselin007

SPQR
Th economy will be destroyed if the Fed keeps rates down and floods the US with trillions of worthless dollars....then massive inflation
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Once the stimulus stops, a lot people are going to hit with higher payments tossing this economy off a cliff. Do you really want do see more foresclosures and bankruptcies. Do you want to see more jobs cut?

July 08 2014 at 1:54 PM Report abuse rate up rate down Reply
1 reply to Iselin007's comment
kolblh

No one seems to comment on inflation, it's started already.

July 08 2014 at 3:46 PM Report abuse rate up rate down Reply
Iselin007

More money for illegals and hardly any money to employ US citizens what a scam this turkey turned out to be.

July 08 2014 at 1:42 PM Report abuse rate up rate down Reply
Iselin007

The crappy GDP isn't doing anything but expose the over hyped job numbers as useless.

The customers sales are too weak and stores are carrying less inventory because of it.

July 08 2014 at 1:39 PM Report abuse rate up rate down Reply
Iselin007

The BLS data when the comparisons are made between now and previous years will reveal the jobs data at this peak is no longer acceptable. The not in the labor force for age 16 and over piled up too fast showing the real trouble in this economy. A 92.1 million not in the labor force has less to do with retiring people, then people who can't find work.

July 08 2014 at 1:34 PM Report abuse rate up rate down Reply
SPQR

JL went up 5% (Jennifer Lopez) with her new Versache dress. On the brighter side the US will absorb countless millions of immigrants, refugees, illegals, , that should lower the median salary to about 30K or less for a family of 4. Many food products have increased 100% over the last 5 years. I guess there is a shortage of everything. However, we can all expect to lose weight!!
SIgn up now for a class on mowing your own lawn at your local Jr college this summer

July 08 2014 at 12:01 PM Report abuse rate up rate down Reply
cameltoes_david

Cooking the books and massaging data is catching up with the big players, now the true numbers will leak out.

July 07 2014 at 9:09 PM Report abuse rate up rate down Reply
Iselin007

The Employment is gaining on crap statistics. Work 1 hour on 1 day and your counted as a part of the labor force whether your unemployed the other 30 days of the month. They'll count any crumb of hope to spin the job gains. The more part time jobs they cram into a labor report the more people they can claim are employed.Their brow beating people into desperation an that's why the polls show people are disgusted.

July 07 2014 at 8:10 PM Report abuse +2 rate up rate down Reply
jdykbpl45

More part time jobs @ Burger King.

July 07 2014 at 7:45 PM Report abuse +2 rate up rate down Reply
1 reply to jdykbpl45's comment
Iselin007

All those crap jobs at fast food restaurants, retail, or other service job saturate many areas. these are the majority of job places people report to, went they go to work. You can't buy a home or rent anything on this crap. If your a babyboomer from the manufacturing era you likely feel like a rock ever since NAFTA and China destoryed the economy.

July 07 2014 at 8:18 PM Report abuse +1 rate up rate down Reply