Top 3 Reasons Markets Were Down After the BLS Jobs Report

Markets closed down on Wall Street today: Dow -0.49%, S&P -0.70%, Nasdaq -0.45%, Oil -2.31%, Gold +0.85%.

On the commodities front, Oil (NYSE:USO) made another reversal, falling back down to $96.39 a barrel after yesterday’s $2 jump. Precious metals continued to rise, with Gold (NYSE:GLD) up to $1,543.50 an ounce and Silver (NYSE:SLV) up 0.48% to $36.71 an ounce.

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Today’s markets were down because:

1) Jobs report. Jobs report. Jobs report. Did I mention jobs report? The Bureau of Labor Statistics released their monthly jobs report this morning, which showed next to no job growth in June, and actually showed that unemployment had increased by 545,000 since March. The report also showed that May’s job growth, originally reported at 54,000, was really less than half that figure. For that reason, the Dow (NYSE:DIA), S&P (NYSE:SPY), and Nasdaq (NASDAQ:NDAQ) all dropped about 1% this morning, though they have recovered somewhat since then.

2) Conglomerate stocks took a hit. Big conglomerate stocks with high trading volumes like General Electric (NYSE:GE), Emerson Electric (NYSE:EMR), Tyco International (NYSE:TYC), United Technologies Corp. (NYSE:UTX), and Textron Inc. (NYSE:TXT) all suffered major losses on the markets today. The best faring of the five was Textron Inc., shares of which were down 0.68% today. The five heavily traded stocks all trade on the NYSE, helping to bring down the whole index, where decliners outnumbered advancers today, two to one.

3) Capital goods weighed down the markets. Capital goods stocks were also a heavy weight on the NYSE, with Honeywell International (NYSE:HON), Cummins Inc. (NYSE:CMI), Caterpillar (NYSE:CAT), Deere & Company (NYSE:DE), and even Boeing (NYSE:BA) all down 1% to 2%. The one bright note is that BA, DE, and CAT are all recovering somewhat in after-hours trading.

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