Closing Update: U.S. Markets Remain Volatile - DJIA Climbs After Dismal Thursday

 Aug 05, 2011 |

 

-DJIA up 60.93 (+0.54%) to 11,444.61 -S&P 500 down 0.69 (-0.06%) to 1,199.38

-Nasdaq down 23.98 (-0.94%) to 2,532.41

GLOBAL SENTIMENT

Nikkei down 3.7%.

Hang Seng down 4.2%.

FTSE-100 down 2.7%.

UPSIDE MOVERS

(+) PCLN continues evening gain that followed earnings beat, upbeat guidance.

(+) TI reports upbeat guidance.

(+) JBHT upgraded.

(+) PG reverses early day declines, beats with earnings, issues mixed guidance.

DOWNSIDE MOVERS

(-) LNKD reverses gains, declines after earnings, guidance beat.

(-) MNKD loss flat with year-ago levels.

(-) NVAX narrows loss.

(-) DLB downgraded.

(-) IPSU loss widens, sales decline.

(-) WTW falling sharply despite earnings beat, raised guidance.

(-) COGO warns Q3 EPS to miss estimates.

(-) CEC sales miss, guidance disappoints.

(-) BRCD cuts outlook.

MARKET DIRECTION

U.S. markets posted a modest rebound Friday, ending mixed after the major averages lost a whopping 4% to 5% each in Thursday's regular session. A better-than-expected jobs report triggered today's buying, but trading was particularly volatile, with the DJIA swinging in a 400 point range that saw it both gain and drop 200 points on each side of the flatline before steadying in the green late in the day. Bulls may have had the upper hand by day's end, but it was a slippery advantage as debt worries in Europe and indications that the U.S. economy is stalling will continue to weigh on sentiment into next week.

The U.S. economy, which has shown signs of weakness lately, added 117,000 jobs last month, better than the 75,000 to 90,000 jobs expected. Data show an even larger 154,000 new jobs in the private sector. The unemployment rate fell to 9.1% from 9.2%, partly because 193,000 people dropped out of the labor force, according to the latest government data, reported by MarketWatch.

Job gains in May and June were also revised up by a combined 56,000, the Labor Department reported. Average hourly wages rose 10 cents, or 0.4%, to $23.13. The workweek was unchanged at 34.3 hours.

Looking out to next week, the pace of earnings season slackens, with only a few market-moving names due with quarterly results. Among companies reporting results on Monday are MGM Mirage (MGM) and Tyson Foods (TSN). On Tuesday, AOL (AOL), Walt Disney Co.


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