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Dow Jones Industrial Average Ends Week 2.8% Lower After Payrolls

The Procter & Gamble Company (NYSE:PG) earnings helped stem blue-chip losses

by 8/1/2014 4:21:12 PM
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The Dow Jones Industrial Average (DJI) extended Thursday's slide today, bringing its weekly loss to 2.8%, as a weaker-than-expected payrolls report kicked the session off on a sour note. Stemming the subsequent sell-off, however, were hopes that the lackluster labor figures will prompt the Fed to maintain the status quo for longer than expected. In addition, a stronger-than-forecast earnings report from The Procter & Gamble Company (NYSE:PG) kept the blue-chip barometer's losses in check, with the Dow ending on a decline of 70 points, after being down triple digits at midday.

Continue reading for more on today's market, including:

Trading Topic of the Week -- Trading Low-Priced Options: DO trade stocks with a favorable sentiment backdrop. At Schaeffer's, we use sentiment analysis to determine whether a stock's current trend is likely to continue. To maximize returns, we focus our efforts on outperforming stocks surrounded by skepticism, and lagging equities that continue to attract bullish attention.

The Dow Jones Industrial Average (DJI - 16,493.37) gave up 70 points, or 0.4%, as 23 of its 30 components ended lower. JPMorgan Chase & Co. (NYSE:JPM) suffered the worst fate, shedding 2.1%, while PG led the blue-chip elite with a 3% advance. The Coca-Cola Company (NYSE:KO) finished flat. For the week, the Dow dropped 2.8% -- its biggest weekly loss since January.

The S&P 500 Index (SPX - 1,925.15) spent part of the session in positive territory, but couldn't maintain upside momentum, dropping 5.5 points, or 0.3%, by the close. The Nasdaq Composite (COMP - 4,352.64) followed suit, ending with a deficit of 17.1 points, or 0.4%. For the week, the SPX and COMP gave up 2.7% and 2.2%, respectively.

The CBOE Volatility Index (VIX - 17.03) eked out a fractional gain, advancing 0.5%. For the week, the "fear barometer" surged 34.2%.

CLOSING SUMMARY  INDICES

CLOSING SUMMARY  NYSE AND NASDAQ

5 Items on Our Radar Today:

  1. The U.S. saw 209,000 jobs created in July -- down from an upwardly revised 298,000 in June, and falling short of economists' expectations for 233,000 new jobs. Likewise, the unemployment rate unexpectedly increased by 0.1 percentage point to 6.2%, the Labor Department reported, compared to the anticipated drop to 6%. (CNBC)
  2. Rounding out a mixed bag of economic reports, July's final University of Michigan/Thomson Reuters consumer sentiment index fell to 81.8 from 82.5 in June -- higher than the preliminary July reading of 81.3, but slightly steeper than the expected drop to 81.9. Meanwhile, consumer spending rose the most in three months in June, construction spending took an unexpected tumble, and July factory activity rose at the fastest pace in more than three years. (MarketWatch; Bloomberg; Reuters)
  3. A TWTR option trader upped the bullish ante.
  4. Michael Kors Holdings Ltd (NYSE:KORS) and Coach Inc (NYSE:COH) are primping for the earnings spotlight .
  5. 3D Systems Corporation (NYSE:DDD) was slapped with a slew of downgrades.
EARNINGS

For a look at today's options movers and commodities activity, head to page 2.

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