U.S. markets tumble after poor jobs report

invisibleSHIELD case for iPad“Stocks tumbled Friday after a report showed fewer jobs were added to nonfarm payrolls than expected last month and most of those were temporary census workers,” Cindy Perman reports for CNBC.

“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.

53 Comments

  1. Look at the bright side… we’re taking care of that pesky don’t ask don’t tell law, 95% of media representatives agree that Obama isn’t at fault for the gulf oil disaster, California is getting rid of grocery bags, Congress is working feverishly on preparing new legislation to take control of the Internet, we spend more on the interest on the national debt in a few months than the entire cost of the Iraq and Afghanistan wars to date, (oh wait, that’s bad)… the administration will likely push for yet another ineffective trillion dollar pork package masquerading as a stimulus package, that no one can track, the Congressional Budget Oversight folks have finally done the math and figured out the Health Care package will “put extreme stress and demand” on the American economy…

  2. 41,000 actual, meaningful private sector jobs vs. 411,000 government jobs. Ouch!

    10 new temporary government workers, with taxpayer funded paychecks, for every new private employee. Is that what the stimulus is all about?

    If that doesn’t embody what the future holds for this country under Democratic control led by the Obama regime, then I don’t know what does.

    The government is eating us alive.

  3. “If that doesn’t embody what the future holds for this country under Democratic control led by the Obama regime, then I don’t know what does. “

    It doesn’t and you don’t. All of these jobs were lost during the Bush years.

    So I guess this site has converted completely to a far right wing political opinion rag. Yes Apple is a public traded company, but we all know what this post is all about. It’s pretty easy to post anything anti Obama. It’s like the 6 degrees of separation. We’re only 2 away from Kevin Bacon. The new catch word “Mainstream Media” pops up here more and more. Fox news started it, and now every righty follows suit.

  4. “Government does not solve problems; it subsidizes them.” – Ronald Reagan

    “Governments tend not to solve problems, only to rearrange them.” – Ronald Reagan

    What we need is another Ronald Reagan. This time, without the Cold War to win, we’d be debt-free within 8 years!

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