Stocks finish dismal Q2 on sour note as jobs data disappoints
By Hao Li | July 1, 2010 11:36 AM EST
The stock market ended the second quarter in a disappointing mood as Automatic Data Processing's (ADP) jobs data fell sharply below expectations, possibly sparking concerns ahead of Friday's more closely-watched jobs data.
U.S, equities suffered a particularly dismal second quarter -- the S&P 500 and Nasdaq each plunged 12 percent for the period, while the Dow Jones Industrial Average tumbled 10 percent -- making it the worst quarter since the collapse of Lehmsan Brothers in late 2008.
The S&P 500 dropped 10.53 points, or 1.01 percent, to close at 1,030.61. The Dow Jones Industrial Average dropped 96.28 points, or 0.98 percent, to end at 9,774.02. The Nasdaq Composite lost 1.21 percent. Like many trading sessions recently, today featured yet another late-day sell-off.
The S&P 500 Index also closed below 1,040, which some technical analysts consider a key support level and warn that if it is breached, the market could decline further.
Basic materials and technology stocks dropped the most as Freeport-McMoran (NYSE:FCX) fell 3.18 percent and Google (NASDAQ:GOOG) lost 2.05 percent.
European markets recovered from Tuesday's sell-off as Germany's DAX closed up 0.23 percent and France's CAC 40 gained 0.29 percent. Asian stocks were lower as Hong Kong's Hang Seng lost 0.59 percent.
The euro rose against the U.S. dollar, although it was trading higher around the end of the European session, which corresponds to noon in New York.
European assets fared relatively well as concerns from the expiry of European Central Bank's (ECB) 1-year loans to banks eased. On Wednesday, the ECB opened a lending facility offering 3-month loans – for the purpose of smoothing over the expiring of 1-year loans – and the demand for these loans were less than expected, suggesting that liquidity in Europe is better than previously thought.
A U.S. economic report showed that manufacturing activities in the Chicago region remains strong. However, investors were spooked by a worse than expected ADP private non-farm payrolls change. While economists surveyed by Bloomberg expected a gain of 60,000, the actual increase was only 13,000.
This unnerved some investors ahead of Friday's closely-watched and market-moving Bureau of Labor Statistics (BLS) jobs report, which contains the government's non-farm payrolls change and unemployment rate figure.
To contact the editor, e-mail:
Most Popular Slideshows
- NFL Recap - Week 4: Green Bay Packers 38, Chicago Bears 17 [PHOTOS]
- Derek Jeter With The New York Yankees Through The Years [IN PICTURES]
- Photos Of George Clooney And Amal Alamuddin, They Get Married Again On Monday [Slideshow]
- Taylor Swift's Famous Ex-Boyfriends: From Harry Styles To Joe Jonas [PHOTOS]
Join the Conversation
- 100% Tuition-Free – Why Germany Is The Envy Of University Students From Other Countries
- Australian Stock Market Report – Midday October 1, 2014
- Australian Stock Market Report – Morning, October 2, 2014
- Australian Stock Market Report – Afternoon October 2, 2014
- Global Markets Overview – October 2, 2014
- Apple iPhone 6 vs. OnePlus One: With Invitation-Only Model Rested, OnePlus One Can Be A Real Threat To iPhone 6
- 3 Signs Nexus 6, 8 Release Date Nears: Leaked Pics, KitKat Factory Image & Android L Details Emerge
- ISIS Supporters are Walking Among the Many in the United States – Report
- New Windows OS Is Not Windows 9, Microsoft To Launch Windows 10 As New OS Build
- Samsung Aware Of Gap Issue On Galaxy Note 4, Mentions It As Important Manufacturing Feature In Note 4 User Manual
- ISIS Receives Food, Ammunition Due To Mistake Of Iraqi Pilots
- Airstrikes Against ISIS Has Claimed Innocent Lives In Syria, Dubbed ‘Ineffective’ By Jihadi Fighters, US Military To Ask For More Spending Money