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December 14, 2017
Friday, January 9, 2015

Wall Street retreats after two-day advance; jobs data mixed

US stocks fell following a two-day rally as December's jobs report gave a mixed view of the economy, with financial shares leading the way lower.

All three major indexes posted slight losses for the week and fell back into negative territory for 2015.

US nonfarm payrolls rose in December, topping Wall Street expectations, but wages unexpectedly fell.

Fourth-quarter results from S&P 500 companies pick up next week, including JPMorgan Chase & Co and Wells Fargo . Both were among the biggest drags Friday, with JPMorgan down 1.7 percent at $59.34 and Wells Fargo down 1.6 percent at $52.68. The S&P financial index lost 1.3 percent, the day's worst-performing major sector.

The Dow Jones industrial average fell 170.5 points, or 0.95 percent, to 17,737.37, the S&P 500 lost 17.33 points, or 0.84 percent, to 2,044.81 and the Nasdaq Composite dropped 32.12 points, or 0.68 percent, to 4,704.07.

Today's decline followed two days of more than 1 percent gains for the market, a rally fueled in part by minutes from the last Federal Reserve meeting, which reassured investors the central bank was in no hurry to start raising interest rates.

For the week, the Dow and Nasdaq were down 0.5 percent, while the S&P 500 lost 0.6 percent.

Oil prices resumed their slide after two days of relative calm, with Brent and U.S. crude lowest since April 2009 on persistent worry over a supply glut. The S&P energy sector fell 0.8 percent.

A number of retail shares fell after reporting December sales and providing forecasts. The S&P retail index ended down 1.7 percent.

Bed, Bath & Beyond dropped 6.7 percent to $74.09 and was among the S&P 500's biggest percentage decliners after the retailer forecast fourth-quarter earnings at the low end of expectations.

Macy's shares fell 2.8 percent to $65.92 a day after it said it would close 14 stores and cut some jobs.

About 6.3 billion shares changed hands on US exchanges, below the 7.1 billion average for the last five sessions, according to BATS Global Markets.

NYSE decliners outnumbered advancers 1,916 to 1,139, for a 1.68-to-1 ratio; on the Nasdaq, 1,811 issues fell and 927 advanced, for a 1.95-to-1 ratio.

The S&P 500 posted 43 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 75 new highs and 45 lows.

In Europe, shares were poised to post a loss in the first full trading week of 2015, weighed down by a slide in banks, led by Spain's Santander after its capital increase, and oil companies.

Relief after stronger-than-expected U.S. jobs data proved short-lived as the pan-European FTSEurofirst 300 index dipped back late on Friday to trade 1.1 percent lower at 1,353.60 points. It was down 0.7 percent from last Friday's close.

Euro zone banks, down 5.2 percent, continued to weigh as expectations of a bond-buying programme from the European Central Bank cooled and heavyweight Santander slid over 13 percent after announcing a capital increase and dividend cut.

Traders said the discounted price of Santander's capital increase had hurt the stock, though some analysts said the move would pay off.

The broader sector was under pressure as sources close to the discussions told Reuters that an ECB bond-buying programme may see national central banks buy some of the bonds, and set a ballpark figure for the overall size of the programme at 500 billion euros ($590 billion).

Energy stocks, down 1.5 percent, also weighed as oil prices headed for a seventh straight weekly loss, slipping back towards $50 a barrel on Friday as key producers show no sign of cutting output in the face of a supply glut.

The market had briefly cut its losses earlier after data showed US job growth increased briskly in December, further strengthening the economy's fundamentals.

Meanwhile, the Nikkei rose for a third day today on growing confidence in the U.S. economy and hopes of aggressive stimulus steps in Europe, while Fast Retailing Co rose after reporting strong quarterly profits.

The Nikkei advanced 0.2 percent to end at 17,197.73 after dipping into negative territory earlier. For the week, it dropped 1.5 percent. The broader Topix added 0.2 percent to 1,380.58, and the new JPX-Nikkei Index 400 gained 0.2 percent to 12,495.99.

Index-heavy Fast Retailing gained 0.8 percent and contributed a hefty 40 points to the benchmark Nikkei index after reporting strong first quarter profits.

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Tags:  US  stock market  Europe  Nikkei  





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