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US Market
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Stocks
ended mixed Friday after a tough session and week, as a rally in the hard-hit
financial sector countered amplified recession fears that were sparked by a
weak labor market report.
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Bond
prices edged lower, raising the corresponding yields, while the dollar
strengthened versus the euro and yen. Oil prices settled at a five-month low,
while gold and other commodity prices also declined modestly.
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After
the close, reports surfaced that the Treasury Department is close to
announcing a plan to help troubled mortgage lenders Fannie Mae and Freddie
Mac.
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The
plan, which could be announced as soon as this weekend, is expected to
include a capital injection and changes to senior management at both firms,
the Wall Street Journal reported. The two government-sponsored firms own or
back about half the mortgage debt in the country. Fannie Mae (FNM, Fortune
500) shares fell 18% in extended-hours trading, while Freddie Mac (FRE,
Fortune 500) shares lost 10%.
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All
three major gauges fell through the morning Friday but managed to recover in
the afternoon as the financial sector turned around. Financial stocks make up
the second biggest sector in the S&P 500, after technology, so a rally
can help improve the overall market.
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For
the week, all three major gauges slipped. The Dow declined 2.8%, the Nasdaq
lost 4.7% and the S&P 500 lost 3.2%
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The
unemployment rate surged to a five-year high of 6.1% in August, as employers
cut jobs from their payrolls for the eighth straight month amid the weak
economy. Economists surveyed by Briefing.com had forecast the unemployment
rate would hold steady at July levels of 5.7%.
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Average
hourly earnings, the report's inflation component, rose 0.4% after rising a
revised 0.4% in July. Economists were looking for average hourly earnings to
rise 0.3%, on average.
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In
other economic news, a record 1.25 million homes were in foreclosure during
the second quarter of 2008, according to the Mortgage Bankers Association.
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Market
breadth was mixed. On the New York Stock Exchange, winners topped losers by a
narrow margin on volume of 1.2 billion shares. On the Nasdaq, decliners beat
advancers seven
to six on
volume of around 2.27 billion shares.
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U.S. light crude oil for
October delivery fell $1.66 to settle at $106.23 a barrel on the New York
Mercantile Exchange, after ending the previous session at a five-month low.
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Gas
prices declined for a fifth straight day, according to a national survey of
credit-card activity.
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The
recent decline in driving has cut into the federal Highway Trust Fund,
prompting the government to ask Congress for an $8 billion emergency infusion
Friday.
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In
the bond market, Treasury prices gave up early gains and turned lower. The
decline lifted the yield on the benchmark 10-year note to 3.64% from 3.62%
late Thursday. Prices and yields move in opposite directions.
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The
dollar gained versus the euro, hitting its highest point against the European
currency since October of last year. The dollar also hit its highest level
against the British pound in two years. But the greenback was flat versus the
yen.
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COMEX
gold for December delivery fell 40 cents to settle at $802.80 an ounce.
v
Sources
from money.cnn.com
US economic reports release
this week (Sep 08 to Sep 12):
Monday,
08 Sep: Consumer Credit (Jul)
Tuesday, 09 Sep: Pending Home Sales
(Jul)
Wholesale Inventories (Jul)
Wednesday, 10 Sep: Crude Inventories (09/06)
Thursday, 11 Sep: Export prices ex-ag.
(Aug)
Import Prices ex-oil
(Aug)
Initial Claims (09/06)
Trade Balance (Jul)
Treasury Budget (Aug)
Friday, 12 Sep: Core PPI (Aug)
PPI (Aug)
Retail Sales (Aug)
Retail Sales ex-auto
(Aug)
Business Inventories
(Jul)
Mich Sentiment-Prel. (Sep)
HK Market
Last day's close
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