July 7, 2012- On Friday, the attention of investors’ was dominated by the government’s latest jobs report. The Department of Labor’s June jobs report showed that the nation’s economy increased jobs by only 80,000 during the month, below the expectations of Wall Street. The results of the report point towards the slowdown of growth in employment, which is worrisome for the economy in the U.S.
Many people are becoming very alarmed with the reports, wondering how a recovery can be accomplished if people do not have jobs. Friday’s trading was light and most of the biggest losses were pared by the end of trading. Helping to par losses was a rumor that the Federal Reserve may intervene with some sort of stimulus package. One report said the Fed might start another round of buying bonds.
The Dow ended the day on Friday off 124 points or about 1%. The Nasdaq was down 39 points or about 1.3% and the S&P 500 shed 13 points or just under 1%. For the shortened holiday week, the Dow was off 0.8% while the Nasdaq gained 0.1% and the S&P lost 0.5%.
Commodities were hit the hardest on Friday with Oil prices dropping by over 3%, copper prices dropped 2% and prices on gold were down 2%.
The worry about the eurozone continued, as once again the Spanish bonds’ yields were high as they hovered near the 7% range, a dangerous sign.