US Markets U.S. stocks finished lower Friday and the Dow Jones Industrial Average snapped a three day winning streak, as financial stocks fell sharply and Europe's sovereign-debt problems overshadowed a stronger U.S. employment reading. The Dow Jones Industrial Average declined 20.21 points, or 0.18%, to 11103.12, following a streak of three straight triple-digit gains. Despite Friday's loss, the blue-chip measure gained 1.7% for the week and advanced for the third week in four. The Standard & Poor's 500-stock index shed 9.51 points, or 0.82%, to 1155.46, but ended 2.1% higher for the week, snapping a two-week losing streak. The technology-oriented Nasdaq Composite lost 27.47 points, or 1.1%, to 2479.35, but added 2.7% for the week. Stocks advanced early in the session after U.S. September nonfarm payrolls rose more than expected and an especially weak August reading was revised higher. But major indexes dropped after Fitch Ratings issued ratings cuts for Italy and Spain, two large euro-zone economies that are also sovereign-debt trouble spots. The S&P 500's financial components fell 3.7%, leading decliners, and finished the week flat despite the broad measure's weekly advance. Bank of America shed 38 cents, or 6.1%, to 5.90, leading blue-chip stocks lower, followed by J.P. Morgan Chase, which lost $1.68, or 5.2%, to 30.70. Consumer stocks rose after the jobs report, helping limit losses. Wal-Mart Stores led the blue-chip Dow's gainers as it rose 95 cents, or 1.8%, to 53.70. Home Depot added 54 cents, or 1.6%, to 33.92. S&P 500 consumer staples and utilities stocks finished higher. The two sectors are commonly viewed as defensive. Sprint Nextel slumped 60 cents, or 20%, to 2.41, to lead S&P 500 decliners. The company spooked investors by saying it will need to raise money for a network upgrade and to help cover higher costs that are expected from offering the iPhone. EU markets European stocks ended higher Friday and posted a weekly gain of nearly 3%, moving up after U.S. jobs data for September exceeded economists' expectations. The Stoxx Europe 600 index rose 0.8% to close at 231.99. It gained 2.6% for the week. The gains came after data showed U.S. nonfarm payrolls rose 103,000 in September, well above expectations for an increase of 59,000. The German DAX 30 index rose 0.5% to 5,675.70, as car maker BMW AG rallied 4.1%. London's FTSE 100 index gained 0.2% to 5,303.40, as miner Vedanta Resources PLC stood out, its shares adding 4.2%. However, shares of British banks fell after Moody's Investors Service downgraded 12 U.K. financial institutions. Moody's cut the senior debt rating of units of Lloyds Banking Group PLC and Royal Bank of Scotland Group PLC, and the U.K. arm of Banco Santander SA, saying there's a lower probability that the government would support financial institutions if they need it. Shares of RBS fell 3%, while Lloyds fell 3.4% and Barclays PLC lost 1.9%, as Santander rose 1.1% in Madrid. Moody's also downgraded several Portuguese banks, citing increased risk from their exposure to sovereign debt, deterioration of domestic asset quality and liquidity strains. Among those cut, shares of Banco Comercial Portugues SA fell 3.9% and Banco Espirito Santo SA lost 1%, while Banco BPI SA gained 0.5%. In Paris, the French CAC 40 index rose 0.7% to 3,095.56, as insurer AXA SA rallied 5.1%. Asian Stocks Asian stock markets ended sharply higher Friday, as fresh optimism that Europe is ramping up efforts to shore up its financial system and prevent another global banking crisis boosted investor appetite for equities. Hong Kong's Hang Seng Index rallied 3.1%, Japan's Nikkei Stock Average climbed 1.0%, and South Korea's Kospi jumped 2.9%. Mainland Chinese markets were closed during the week for a holiday. Asia's climb Friday followed a strong performance for U.S. stocks Thursday after the release of better than forecast unemployment-claims data on a day when the Bank of England and the European Central Bank announced new easing measures. Asian bank-sector stocks were notable gainers Friday. [Kick off your trading day with our newsletter] Worries about the global banking system undergoing a similar meltdown to that of 2008 had kept the sector under selling pressure during much of the past few months. HSBC Holdings PLC rallied 3.9%, and Bank of China climbed 4.3% in Hong Kong. Mitsubishi UFJ Financial Group rose 0.6% and Nomura Holdings climbed 1.1% in Tokyo, while Korea Exchange Bank gained 6.5% in Seoul. Exporters also gained, as signs of banking-sector relief fed into hope that the global economy will escape recession. In Japan, Nissan Motor climbed 2.2% and Citizen Holdings added 3.7%. Li & Fung jumped 7.6%, and Esprit Holdings rallied 8.5% in Hong Kong. Commodities Base metals closed mostly higher on the London Metal Exchange Friday as a better than expected U.S. employment report stoked cautious optimism among traders. The benchmark copper contract, for three month delivery, closed the afternoon open outcry session up $143, or 2%, at $7,368.00 a metric ton. This was the second consecutive day of gains for copper. The U.S. economy added 103,000 jobs in September, outpacing a 60,000 increase forecast by economists. Crude futures ended higher Friday as an improvement in the U.S. labor market managed to hold off concerns about twin ratings cuts to two of Europe's largest economies. Light, sweet crude for November delivery settled 39 cents, or 0.5%, higher at $82.98 a barrel on the New York Mercantile Exchange in a roller-coaster session that also featured dips into negative territory. Brent crude on the ICE futures exchange was 30 cents higher at $105.70 a barrel. Gold fell as a pair of credit-rating downgrades drew investors' focus back to Europe's debt crisis, erasing the economic optimism that had boosted precious metals earlier in the day. The most actively traded gold contract, for December delivery, fell $17.40, or 1.1%, to settle at $1,635.80 a troy ounce on the Comex division of the New York Mercantile Exchange. |
