The Dow Sells Off Before Friday's Jobs Report

Updated

Two-thirds of the companies on the NYSE traded lower today, possibly a sign that investors are pulling back on expectations of a slight market correction tomorrow, when payroll figures are released. All indications are pointing toward a negative nonfarm payrolls report, possibly setting up a selloff to close out the week. Yesterday, we saw private-sector hiring come in at a seven-month low, and that was followed by today's services-sector index reporting a lower-than-expected reading of 53.3.

The Dow Jones Industrials (INDEX: ^DJI) fared the best of the three major U.S indices today, down half a percent. The Nasdaq finished down 1.16%, seeing some huge movers in the index: Green Mountain Coffee Roasters (NAS: GMCR) finished down a whopping 47%, while Fuel Systems Solutions (NAS: FSYS) fell 19%.

Among Dow stocks, Intel was down 1.42%, with retailers thinking second-quarter demand may be lower than originally anticipated if consumers hold off on computer purchases until after Microsoft releases Windows 8.


Alcoa (NYS: AA) took another hit today, down 1.54% as Chinese economic forecasts have lacked transparency and poor European industrial growth creates uncertainty in the aluminum markets. Uncertainty and lack of demand have combined to send Alcoa down more than 3% over the past week.

Coca-Cola, meanwhile, bucked the day's trend and steadily increased its share price, closing up 0.36%. Reports making the rounds say Coca-Cola backed out of its talks to take over Monster Beverage (NAS: MNST) because of Monster's carefree image.

Around the market's close today, we got a big announcement that the staring price for Facebook's IPO will be between between $28 and $35. That amount would raise about $13.6 billion, enough to make it the biggest U.S company at the time of its original IPO.

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At the time thisarticle was published Joel South owns shares of no company listed above. The Motley Fool owns shares of Coca-Cola, Intel, and Microsoft.Motley Fool newsletter serviceshave recommended buying shares of Green Mountain Coffee Roasters, Microsoft, Intel, Coca-Cola, and Monster Beverage, creating a lurking gator position in Green Mountain Coffee Roasters, and creating a bull call spread position in Microsoft. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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