DISAPPOINTING JOBS REPORT

Disappointing U.S. jobs report fuels Wall Street's bullish sentiment

NEW YORK -- U.S. stock losses mounted Friday after Standard & Poor's downgraded its outlook for Bear Stearns Cos. added to Wall Street's credit-related worries and the latest employment report showed weaker-than-expected jobs growth last month.

Chart of $INDU
Stocks lost ground on a "disappointing" employment report and anxiety about "Bear Stearns and their credit concerns," John Hughes, managing director at Epiphany Equity Research, told MarketWatch. Listen to Hughes.
After falling more than 100 points, the Dow Jones Industrial Average ($INDU :
$INDU

Hard labor

The Labor Department reported that nonfarm payrolls grew by a lower-than-expected 92,000 in July, the lowest level since February. See full story.
In addition, the unemployment rate rose to 4.6%, the highest since January, Economists were expecting payroll growth of about 133,000, according to a survey conducted by MarketWatch. The jobless rate was expected to remain at 4.5%. See Economic Calendar.

"This is not a positive catalyst for the market," said Art Hogan, chief market strategist at Jefferies & Co. "I think people are going to be a little shocked that the unemployment rate inched higher last month."

The Institute for Supply Management reported non-manufacturing parts of the U.S. economy expanded at a slightly slower pace in July, with its gauge of the sector falling to 55.8% from 60.7% in June.

Oil slide

After touching a low of $75.84 on the New York Mercantile Exchange, September crude fell 1.1%, or 86 cents, to $76 a barrel as weaker-than-expected U.S. jobs growth raised concerns about an economic slowdown, which would hinder energy demand.

The jobs data also weakened the dollar. In New York trade, the greenback was quoted at 118.59 yen, vs. 119.23 yen late Thursday. The euro stood at $1.3740, compared with $1.3701.

Treasurys shot higher after the weaker-than-expected jobs report as these safe-haven assets generally benefit from signs of economic weakness. The benchmark 10-year Treasury note was 11/32 higher at 98-8/32 with a yield ($TNX :

Gold futures climbed to one-week highs, with Gold for December delivery up $5 at $681.60 an ounce on the New York Mercantile Exchange. End of Story