After Market: Weather-Dampened Jobs Report Leaves Investors Cold

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Job creation last month was shockingly weak, but analysts couldn't really explain why –- other than to blame the weather -- which left investors unsure how to react Friday. Many analysts say the numbers are likely to be revised higher next month, and in the end, market reaction was muted.

The Dow Jones industrial average (^DJI) lost ground for a third straight day, declining nearly 8 points, but the Standard & Poor's 500 index (^GPSC) added 4, and the Nasdaq composite index (^IXIC) rose 18 points.

Target (TGT) lost more than a point after saying the data breach that began on Black Friday was much worse than previously thought. The company now says as many as 70 million customers had personal information stolen. Target also lowered its fourth quarter outlook, partly because sales slumped after the data breach was first revealed.

Sears (SHLD) tumbled by around 13.5 percent. It expects a big quarterly loss as sales fell during the holiday shopping season.

Several smaller, specialty retailers also fell: Pacific Sunwear (PSUN) slid 16 percent, Five Below (FIVE) fell 7 percent, Shoe Carnival (SCVL) lost 5 percent, and Conn's (CONN) lost 2 percent. But Abercrombie & Fitch (ANF) jumped 12 percent. It raised its earnings forecast as sales were not as bad as expected.

Elsewhere, Alcoa (AA) fell about 5.5 percent. It's not quite the economic bellwether it used to be, but the aluminum giant still matters, and its net came in a bit shy of expectations.

YRC Worldwide (YRCW) tumbled 13 percent after workers rejected a contract offer. That has raised fears the trucking company could be forced into bankruptcy.

On the upside, the weak jobs report could keep mortgage rates from rising, and that boosted housing stocks. KB Homes (KBH) rose 3 percent, William Lyons (WLH) up 4 percent, and Lennar (LEN) was up 2 percent.

And on Thursday we reported that shares of Intercept Pharmaceuticals nearly quadrupled in price on news of a positive clinical study for its liver drug. Well, it soared another 61 percent Friday. The stock has gone from about $70 a share on Wednesday to close the week at $444 a share.

What to Watch Monday:
  • The Treasury Department releases the federal budget for December at 2 p.m. Eastern time.
-Produced by Drew Trachtenberg.


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createidea

Job creation last month was shockingly weak, but analysts couldn\'t really explain why –- other than to blame the weather ...

LOL !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

January 12 2014 at 7:55 PM Report abuse +1 rate up rate down Reply
crrunch

BO may be no prize, but the formulas for unemployment, etc have been used for decades. Unemployment is/was always worse than the numbers they present for us to unquestionably swallow.

January 11 2014 at 10:51 PM Report abuse rate up rate down Reply
you sweet thing

The weather? Uh huh. Nobody is going to hire or expand until this clown is out of office.

January 11 2014 at 10:04 PM Report abuse -2 rate up rate down Reply
crptman101

Obama didn't know it was snowing until he read it in the paper. So I guess by saying that the weather is the problem for job growth then climate change (global warming) is why the economy sucks oh that is the wind.

January 11 2014 at 9:09 PM Report abuse rate up rate down Reply
larry

Well, at least Obama isn't blameing Bush this time around for the bad jobs report. Blameing Bush for everything was getting really, really old.

January 11 2014 at 7:09 PM Report abuse rate up rate down Reply
buckeye3118

Of course, you wouldn't want to blame it on PopStar MESSiah's socialist economic programs.

January 11 2014 at 6:16 PM Report abuse rate up rate down Reply
VA Services

I just have to ask, “What world do these people live in”? They tell me the economy is “back”, there’s no “inflation” and housing is almost back to where it was before the crash! I have to ask again what world do these people live in?
You know when you look back, when there was a republican president in office, if the same things were going on the press would be burning up the front pages and every news cast with how bad things are for everybody but the republican fat cats. Oh they would be screaming everyday how “the rich are getting richer and the poor are getting poorer”!
Well? How come we don’t hear that or see that everyday right now? Yes I know stupid question….because it’s a democrat in office!
The market drops a 100 points or maybe even 300 points….and the business channels blare that the stock market “plunged” or “tanked” or “had a big down turn”.
But hey the next day its back up to where it was or more…..the rich are getting richer…
We the people need to challenge every reporter and every politician that you come in contact with. Challenge them with facts! And please get your facts from a reliable site! Don’t make up stupid facts or go to web sites that spin the truth. I don’t care what side you’re on use facts! That’s the only way we’re going to stop these jokers. Get off your collective ass’es and do something! Remember that there are two jobs in this world where you get paid to be wrong most of the time:
The weather reporter and the economist!
Ever notice that none of the reporters on TV or in print or the politicians or even the pundits will stand for a real debate? One with “just the facts” and not the name-calling or the emotional blackmail that you usually see? Ever wonder why that is? Not a one will have a true debate, they’ll all spin I don’t care what side they’re on! And it’s our fault for letting them get away with it! How we get Roger Ails to do a program where the subject is one topic and two people from different sides debate it for a full hour. Have fact checkers on each side as the program progress’s and a moderator that will say when it’s name-calling or emotional blackmail from either side. I don’t think you’ll get any one to appear on the show, I don’t think anyone today knows how to debate any more without using spin. Someone call Roger Ails for will ya? Okay I’m done with my rant! Happy 2014

January 11 2014 at 4:06 PM Report abuse -1 rate up rate down Reply
dolfnrch13

Lol so know it's the weather's fault lol these people have no shame

January 11 2014 at 3:27 PM Report abuse +2 rate up rate down Reply
wood1966

Don't ask OB,he does not have a clue what is going on in DC.......jUST ASK--I know nothing???

January 11 2014 at 3:11 PM Report abuse +1 rate up rate down Reply
paddleman1928

"reason" no. Excuse-yes

January 11 2014 at 3:10 PM Report abuse rate up rate down Reply