Disappointing US jobs growth was not enough to knock the benchmark S&P 500 off a four-year high on Friday, as the poor figures boosted optimism that the Federal Reserve will act to stimulate the economy next week. The nonfarm payrolls report, which showed job growth of only 96,000 last month, came a day after bold action by Europe to stem the debt crisis drove the S&P to its highest close since January 2008.
The Dow ended at its best level since the end of 2007 while the Nasdaq hit a 12-year high. Intel Corp cut its third-quarter revenue estimate and withdrew its full-year forecast, saying demand for its chips declined as customers reduced inventory and businesses bought fewer personal computers. Shares of the world's largest chipmaker fell 3.4 percent to $24.23.
The Dow Jones industrial average dropped 8.50 points, or 0.06 percent, to 13,283.50. The Standard & Poor's 500 Index gained 4.13 points, or 0.29 percent, to 1,436.25. The Nasdaq Composite Index fell 0.42 point, or 0.01 percent, to 3,135.39. Semiconductor shares fell after Intel's warning, with the PHLX semiconductor index down 1.1 percent. The S&P materials sector index rose 1.8 percent as gold prices hit a six-month high on increased likelihood of Fed easing.
Comments
Comments are closed.