Stocks mostly rise as investors snap up financials
NEW YORK (AP) -- Stocks reversed a steep sell-off to end mostly higher today as fears about a worrisome jobs report gave way to bargain hunting in sectors like financials and consumer staples.
Wall Street initially fell after the Labor Department reported that payrolls shrank more than predicted last month and that the unemployment rate reached a five-year high. But stocks that had been pounded lower, including a huge drop on Thursday, were suddenly more attractive to investors willing to make some bets.
According to preliminary calculations, the Dow Jones industrial average rose 32.73, or 0.29 percent, to 11,220.96; the blue chips had been down 150 points at their lows of the session.
Broader stock ended mixed. The Standard & Poor's 500 index rose 5.48, or 0.44 percent, to 1,242.31, and the Nasdaq composite index fell 3.16, or 0.14 percent, to 2,255.88.
Today's moves follow a dismal performance on Thursday, with all three major indexes moving back into bear market territory, defined as a 20 percent drop from a recent peak. The Dow plunged more than 340 points in a selloff underpinned by disappointing economic news and lackluster sales reports from retailers.
For the week, the Dow lost 2.8 percent, the S&P 500 gave up 3.2 percent and the technology-heavy Nasdaq fell 4.7 percent. The indexes remain in bear market territory, down from their October highs.
After the market was closed for the Labor Day holiday, stocks fell moderately Tuesday and were mixed Wednesday on jitters about the economy.
The Labor Department said payrolls shrank by 84,000 last month, more than the 75,000 economists predicted, and higher than the 51,000 jobs lost in July. The unemployment rate rose to a five-year high of 6.1 percent from 5.7 percent.
The report confirmed Wall Street's fears that the economy continues to weaken. The nation has lost nearly 550,000 jobs so far this year, eroding investors' hopes for a late-year recovery.
"This was an ugly number that pretty much confirms that our economy continues to trend downward," said Jack Ablin, chief investment officer of Harris Private Bank. "I had thought things were stabilizing, and this just knocks the legs out of any hope of seeing much economic improvement right now."
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