The S&P 500 slimmed-down its weekly advance to 1.8 percent after private payrolls that exclude government agencies rose by 71,000, less than forecast, after a gain of 31,000 in June that was adjusted lower. The data added to concern that the United States has been slow in recouping the 8.4 million jobs lost since the recession began in December 2007, preventing consumer spending from accelerating.
“Figures on employment/unemployment are crucial to the economy that is moving forward and recovering and a significant indicator to the market –it’s quite unsatisfactory,”
Equities pared losses as the Federal Housing Administration said it will begin to accept applications for a program to help struggling mortgage borrowers.
JPMorgan Chase & Co., International Business Machines Corp. and Exxon Mobil Corp. led the drop in the Dow Jones Industrial Average, falling at least 1.2 percent each. The index slipped 21.42 points, or 0.2 percent, to 10,653.56, ending the week with a gain of 1.8 percent.
Earlier gains in stocks this week came amid better-than-
U.S. Treasuries are up after the jobs report on speculation that a stalled recovery may force the Federal Reserve to provide more stimulus.
The yield on the 10-year note decreased eight basis points to 2.82 percent. The extra yield investors demand to hold 10- year notes instead of 2-year debt dropped five basis points to 232 basis points. It fell to 227.5 basis points on July 1, reflecting the flattest yield curve since October. .
The Dollar Index, which tracks the U.S. currency against those of six trading partners, fell 0.6 percent and has dropped 1.5 percent over the past five days as it heads for a ninth weekly drop, the longest run of declines since 2004. The dollar lost at least 0.8 percent versus the euro and Swiss franc and earlier fell to 85.02 yen, the lowest level since Nov. 27.
Currencies of major commodity-producing nations retreated against the dollar, with the Canadian, Mexican and Brazilian currencies losing at least 0.3 percent.
The Canadian dollar weakened against all but one of 16 major counterparts, losing 1.9 percent versus the Swiss franc the euro and the Danish krone, after jobs data in that country also trailed estimates. Canadian payrolls shrank by 9,300 jobs in July, the first drop this year.
Gold futures for December delivery rose 0.7 percent to $1,207.50 an ounce, an eighth straight gain, on the Comex in New York. Earlier, gold reached $1,213.30, the highest level for a most-active contract since July 16.
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