Short Session Ends Mixed

News at a Glance

The Lowdown

Stocks finished mixed after the Labor Department said the economy lost 62,000 jobs in June, roughly in line with what economists had expected. The Dow Jones Industrial Average climbed 73 points to 11289. The Nasdaq was weighed down by profit warning from a chip maker and gave up 6 at 2245, and the S&P 500 picked up a point at 1263.

Traders had more or less fortified themselves and their portfolios for the jobs report. Payrolls fell by only 2,000 more than consensus estimates. The June unemployment rate also came in close to economists' estimates, holding steady at 5.5%. The average workweek was also unchanged at 33.7 hours, and hourly earnings ticked up 0.3% as predicted.

A report released Thursday showing a higher-than-expected drop in private payrolls had traders on the heels before the data were released. The ADP Employment report showed the economy lost 79,000 jobs in the private sector last month.

The labor market did offer one unpleasant surprise Friday. Weekly jobless claims came in at 404,000 for last week, up sharply from a revised 388,000 in the prior week and well above economists' estimates.

In tech, Nvidea (NVDA) issued a second-quarter profit warning and saw its rating cut by several analysts. The firm now projects revenues of $875 million to $950 million, well below analysts' estimates. The firm's shares fell sharply and helped depress the Nasdaq.

In energy, oil price were fairly flat after hitting a new record earlier. Crude traded as high as $145.85 as the dollar declined, but prices eased a bit. By 1:06 p.m., crude traded up 86 cents at $144.43.

Gasoline prices hit a new record high for the fourth straight day, according to AAA's Fuel Gauge Report. The national average is now $4.098 a gallon.

In economic news, the services sector appears to have buckled in June. The Institute for Supply Management's Non-Manufacturing Index fell to a reading of 48.2% last month, down from 51.7 in May. A reading below 50.0% indicates the sector is contracting.

Overseas, the European Central Bank raised its benchmark interest rate by 25 basis points to 4.25%. The move was widely expected, as policy makers had expressed concern over inflation. The dollar gained ground against the euro.

The major European indexes advanced. The FTSE gained 0.93%, and the DAX picked up 0.77%. In Asia, Hong Kong's Hang Seng dropped 2.13%, while Japan's Nikkei slipped 0.16%.