“The Dow Jones Industrial Average was down more than 200 points, or over 2 percent, in afternoon trading,” Perman reports. “The S&P 500 and Nasdaq also fell 2 percent or more.”
“The selloff was so severe that decliners outpaced advancers more than 12 to 1 on the New York Stock Exchange. And the CBOE volatility index spiked over 10 percent, topping 33,” Perman reports “Industrials, materials and consumer discretionary were the biggest decliners.”
Perman reports, “US employers added 431,000 jobs to nonfarm payrolls in May, but 411,000 of those were temporary census workers. The private sector added just 41,000 jobs: Manufacturing, temporary help and mining added jobs, while construction declined. That number was also well short of the more than 500,000 economists had expected. The unemployment rate, however, fell to 9.7 percent from 9.9 percent in April. ‘This number is extremely disappointing,’ said Todd Schoenberger, managing director at LandColt trading. However, he said, it should come as no surprise. ‘Considering first time jobless claims have been inching higher over the past four weeks … and GDP came in at a lackluster 3%, American companies are going to be reluctant to hire.'”
Perman reports, “‘The two areas of potential vulnerability for the economy remain payrolls and housing and they’re both staggering a good deal,’ Art Cashin, director of floor operations at UBS, said on CNBC this morning. ‘From a market standpoint, I think we’re going to switch over and start issuing Dow 10,000 helmets!’
Perman reports, “Apple is expected to debut a new version of the iPhone on Monday but the early buzz is that it may not be a dazzler.”
Full article here.
MacDailyNews Take: This “next iPhone not a dazzler” meme is running throughout the mainstream media today. We wonder who paid for today’s FUD-fest?
• Reuters: New Apple iPhone on tap but may fail to dazzle
• The Telegraph: 10 reasons not to buy Apple’s new iPhone 4G
• CNN: As strong rivals emerge, do you really need a new iPhone?
Despite all of this, AAPL is holding up pretty well, trading down just $3.61, or -1.37%, to $259.51.