Markets Lower, Closing News 7/8/11

Markets closed lower after this morning’s employment report missed expectations, triggering a sell off as investors did some profit taking after the two week rally we’ve seen.  Despite today’s dip, the Dow finished up 0.59% for the week.


The non-farms payroll this morning was reported up only 18k, far below the 90k that economists’ forecasts were calling for.  The unemployment rate also unexpectedly rose to 9.2%.  President Obama spoke about the weak report this morning, commenting that the lack of an agreement on the debt ceiling was a source of uncertainty preventing companies from hiring.


Markets were also under pressure because US May Wholesale Inventories rose more than expected, up 1.8% in June vs. 0.7% expected and 1.1% reported in May.  The 1.8% marks the largest single-month jump since April 2006.


The final mission in NASA’s space shuttle program blasted off from Cape Canaveral today.  The space shuttle Atlantis blasted off at 11:29 as near one million people watched the 135th and final space shuttle launch.   Atlantis is expected to return to Earth on July 20th after delivering cargo to the international space station and running several experiments.


Market Indices/Statistics:



  • Dow closed down 62.29 pts/-0.49% to 12,657.20

  • S&P closed down  9.42 pts/-0.70% to 1,343.80

  • Nasdaq closed down 12.85 pts/-0.45% to 2,859.81

  • 24 of the 30 Dow stocks closed lower /6 closed higher

  • All 10 S&P 500 sectors closed lower

  • Financials was the worst performing sector (down 1.30%)

  • The VIX was flat, staying at 15.95

  • Oil is down $2.31 to $96.36

  • Nat Gas is up $0.079 to $4.217

  • Gold is up $12.80  to $1,543.50

  • Euro vs. Dollar down $0.0104 to $1.4254

  • Dollar vs. Yen down $0.61 to $81.61

Companies in the News:


Companies in the staffing and employment industry, including Monster Worldwide (-3.17% to $14.65), Manpower Inc. (-4.25% to $56.13), and Robert Half International (-4.03% to $26.68), traded lower after the disappointing jobs data this morning before the bell.


Shares of Exco Resources Inc. slid (-4.75% to $15.85) today after the special board committee formed to review strategic alternatives has concluded the process and determined that no proposals, including the CEO’s takeover bid have resulted in firm proposals.


Autoliv, Inc. shares fell (-10.82% to $71.14) after updating investors on an ongoing antitrust investigation into Autoliv ASP Inc., a company subsidiary, originally disclosed on February 8, 2011.  Autoliv announced that the Department of Justice and European Commission investigations are ongoing, but it is likely that the resolution of the inquiries will result in a material impact on earnings.


Markwest Energy Partners LP priced an offering of 3.5 million common units at $48.00 per unit.  The net proceeds from the deal will be used to repay amounts outstanding under its revolving credit facility and partially fund its ongoing capital expenditure program.  Shares of MWE traded 2.76% lower to $48.30 in trading today.


Earnings:


FTI Consulting announced preliminary results for Q2, seeing adjusted earnings per share of $0.54-0.59 per share in line with expectations.  The earnings will be impacted by a $0.24 per share charge from actions taken by management to reduce overhead costs.  Shares of FCN traded up 1.03% to $38.39 today.


Chase Corporation traded lower today (-8.04% to $15.45) after announcing Q3 results after the bell yesterday.  Chase Corp. reported Q3 earnings per share of $0.33 on revenue of $32.6 million.


Shares of Ameron International Corp. traded lower (-0.19% to $85.24) after reporting Q2 earnings per share of $0.11 on revenue of $134 million vs. estimates of $0.23 per share on revenue of $129 million.  Shares were driven lower because the company announced that earnings are expected to be less than originally thought at the beginning of the year.


Coming Monday:


Economic Reports:None; Earnings from Alcoa