Stocks erase most of 2012 gains after jobs report - Stocks erase most of 2012 gains after jobs report -

Friday, June 1, 2012

Stocks erase most of 2012 gains after jobs report -

Stocks erase most of 2012 gains after jobs report -

NEW YORK (Reuters) - Stocks erased most of the year's gains on Friday after a much weaker-than-expected jobs report added to fears about a global economic slowdown.

The Dow industrials turned negative for the year and the S&P 500 was on track to close at its lowest since early January. The benchmark traded below its 200-day average for the first time in 2012.

The Labor Department said employers created a net 69,000 jobs last month, the weakest in a year and far from the 150,000 new jobs economists had forecast. The unemployment rate rose to 8.2 percent.

The bleak report caps a week that brought soft economic data from China and saw Europe's problems grow as the Spanish bank crisis deepened. A global flight to safety was evidenced in record low yields in U.S. and German government debt as well as a spike in the VIX, a gauge of U.S. equity market anxiety.

"The 10-year yield and VIX are suggesting the vast majority of investors are choosing to panic," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.

"It's been pretty clear for the last year that Europe was going to be a drag for the global economy."

Jacobsen views the steep pullback as a buying opportunity and said he would not revisit that view unless the S&P 500 falls below 1,250.

The Dow Jones industrial average lost 241.92 points, or 1.95 percent, to 12,151.53. The S&P 500 Index dropped 28.63 points, or 2.18 percent, to 1,281.70. The Nasdaq Composite fell 70.26 points, or 2.49 percent, to 2,757.08.

Financial sector stocks were among the worst hit, with the KBW bank index down 4.4 percent, its largest daily drop since early November.

"Most investors don't think the problem in Europe is going to infect the U.S. economy as much as it would the U.S. financial system," said Wells Fargo's Jacobsen.

JPMorgan Chase & Co fell 3 percent to $32.17 and Bank of America Corp was down 4.2 percent to $7.04.

Data released later in the session was less bleak. U.S. construction spending rose 0.3 percent in April and the Institute for Supply Management said its index of national factory activity slipped to 53.5 from 54.8 in April, just missing expectations..

More than five issues fell for every one that rose on both the New York Stock Exchange and the Nasdaq.

In one of the few positive moves of the day, Newmont Mining surged 7.1 percent to $50.52 and Barrick Gold added almost more than 7 percent to $41.82 as gold posted its biggest one-day rise in more than two years.

Homebuilders were among the weakest stocks. Pulte Group plunged 10.8 percent to $8.35 while D.R. Horton lost 8.3 percent to $15.22. The PHLX housing sector index fell 6 percent, but it was still up nearly 14 percent for the year.

(Reporting by Rodrigo Campos, editing by Dave Zimmerman)

(c) Copyright Thomson Reuters 2012. Check for restrictions at:

Stocks plunge on disappointing jobs report - MSN Money
Charley BlaineUpdated: 3:05 p.m. ET

Stocks dropped sharply today, with the Dow Jones Industrial Average ($INDU) going negative for the year, after the Labor Department said the national unemployment rate rose to 8.2% in May and payroll employment growth fell dramatically.

The economy created just 69,000 new jobs in May, down from 77,000 in April and 143,000 in March. The payroll gains were much less than the consensus estimate of 150,000. Worse, the payroll gains for April and March were cut by a total of 49,000 jobs. In a note to clients, Ian Shepherdson, chief U.S. economist of High Frequency Economics, summed up the report in three words: "This is horrible."

There was renewed speculation that the Federal Reserve might try new measures to stimulate the economy, although Chairman Ben Bernanke and others have said they wouldn't move unless the economy shows serious deterioration.

It's questionable if today's jobs report meets that standard. A report on manufacturing missed estimates slightly but suggested more strength in the economy than the jobs reports indicates. Automakers were reporting decent May sales, but the reports were generally below Wall Street estimates.

At 3:05 p.m. ET, the Dow was down 267 points to 12,126. The index is now down 0.8% for 2012. The Standard & Poor's 500 Index ($INX) was off 31 points to 1,280; it's still up 17% for the year. The Nasdaq Composite Index ($COMPX) was off 71 points to 2,757 and enjoying a 5.7% gain for the year. The losses likely are the third straight for the indexes and the worst point losses for the three indexes since Nov. 1.

Article continues below.

The Nasdaq-100 Index ($NDX), meanwhile, was down 61 points to 2,464. The index is heavily influenced by Apple (AAPL), which was down $15.44 to $562.29, subtracting roughly  13 points from the index by itself. Facebook (FB) was down $1.82 to $27.78.

Interest rates were lower, as investors around the world sought safety in bonds. The U.S. 10-year note yield fell to 1.467% from Thursday's 1.58%. The German 10-year bond was yielding 1.172% after falling to as low as 1.172%.

Financial stocks were the weakest sector of the S&P 500, down more than 3.4% overall. All 19 sectors of the index were lower. Bank of America (BAC) was down 36 cents to $6.99. JPMorgan Chase (JPM) dropped $1.35 to $31.81.

Utility stocks were the best performers. The Dow Jones Utility Average ($UTIL) was off just 3 points to 465.

The Dow has now fallen 8.3% since peaking on May 1. The S&P 500 is off 9.5% since its peak of 1,419 on April 2, though it remains up 2.1% for the year. The Nasdaq has dropped 11.4% since peaking on March 26. Its gain has been cut from 20% to 6.3%. A loss of 10% or more is the popular definition of a correction.

Warm weather, Europe and China may be hurting U.S.
Unseasonably warm weather, which brought forward hiring into the winter months, has been blamed for the step back in March and April.

The report contained a number of worrisome elements. Over the last three months, the economy has added 96,000 jobs a month, compared with 250,000-plus in December, January and February. The average workweek fell slightly; average weekly earnings were up just 0.1%.

The payroll survey -- the one from which the unemployment rate is derived -- was stronger, with total employment up 422,000.

Part-time employment, however, accounted for all of the gain and then some. And the alternative measure of unemployment, which includes the traditional measure plus those who have given up or are working part time because they can't find full-time employment, rose to 14.8% from 14.5% in April. It's still down from 15.4% a year ago.

"While this report hardly qualifies as a disaster, it does confirm that there's a real slowdown under way, and not just some weather-related quirks," said Philippa Dunne and Doug Henwood of the Liscio Report, a newsletter that tracks state finances.

What's not clear is the cause. Most economists believe it is worry that Europe's worsening problems will spill over to this country.

"Some had believed that we had decoupled from China slowing and all the problems in Europe, but that seems to be short-sighted," Malcolm Polley, president and chief investment officer of Stewart Capital Advisors in Indiana, Pa., told Reuters.

The report came as stocks in Europe plunged after the European Union's statistics service said unemployment in the eurozone nations hit 11%.

Manufacturing activity declined across the continent, with activity in Spain, France, Greece and even Germany hitting three-year lows. China also contributed to the day's distress after two reports on manufacturing showed growth continuing to slow.

Manufacturing in the United Kingdom also fell back.

European nations have been struggling with a tottering banking system. Spain's largest banks are largely wards of the state, and a big issue now appears to be finding a eurozone-wide mechanism to guarantee bank deposits, as the Federal Deposit Insurance Corp. does in the United States.

Crude oil drops, but gold rises
Crude oil (-CL) was down $3.13 to $83.40 a barrel, potentially its lowest price since Oct. 10. It had traded as low as $82.70. Brent crude, the benchmark North Sea oil, fell to $99.12 a barrel, down $2.75. Brent hasn't traded below $100 a barrel since Oct. 4.

Crude in New York is off more than 15% this year and 26% since peaking at $109.77 a barrel on Feb. 24. Brent has fallen 22% since peaking on March 1.

The national average retail price of gasoline fell to $3.611 a gallon today, according to AAA's Daily Fuel Gauge Report, from $3.626 on Thursday. Gasoline is still up 10% for the year but down 8.3% from a peak of $3.936 in early April.

Gold (-GC), however, jumped $57.90 to settle at $1,622.10 an ounce. Silver (-SI) closed up 75.5 cents to $28.51 an ounce, and copper (-HG) rose 5.2 cents to $3.3135 a pound.

The euro, however, moved higher against the dollar, trading at $1.24285, up from Thursday's $1.2364. It had traded as low as $1.23183.

Auto stocks fall as sales disappoint
Auto sales were good. They were very good. But not good enough for Wall Street.

Shares of most automakers, including Ford Motor (F), Toyota (TM), Honda Motor (HMC) and Nissan (NSANY), were all lower this afternoon as automakers reported May sales.

GM deliveries last month rose 11% to 245,256. Toyota's sales surged 87% to 202,973, Chrysler's climbed 30% to 150,041 and Nissan's increased 21% to 91,794.

But the consensus estimates ahead of the reports were for gains of 15% by GM, 93% by Toyota, 40% by Chrysler and 29% by Nissan.

Volkswagen's (VLKAY) U.S. sales so far in 2012 are the company's best since 1973.

GM shares moved up 88 cents to $23.08 this afternoon after the company said it plans to offer a lump-sum payment to about 42,000 current retirees to invest as they see fit. Those who don't accept will get their pensions via a group annuity purchased through Prudential Insurance. The move is expected to cut GM's pension obligations by some $26 billion.

Wal-Mart is the best Dow performer; gold stocks jump
None of the 30 Dow stocks was showing gains. The best performer was Wal-Mart Stores (WMT), down 27 cents to $65.55.

Only seventeen S&P 500 stocks were higher, along with just four Nasdaq-100 stocks were higher.

Gold miners were having a big day. Newmont Mining (NEM), the largest U.S. gold producer, was the S&P 500 leader, up $2.81 to $49.97. Randgold Resources (GOLD) was the Nasdaq-100 the leader, up 5.6% to $83.75.

German Stocks Fall as China Output Slows; BMW Declines - Bloomberg

German stocks declined for a third day as manufacturing growth slowed in China, unemployment in the single currency area reached a record and American employers in May added the fewest workers in a year.

Bayerische Motoren Werke AG (BMW) dropped 3.9 percent after the world’s largest luxury carmaker said Germany’s car market won’t grow in 2012. Infineon Technologies AG slid 5.7 percent. MAN SE jumped 2.2 percent after its parent company, Volkswagen AG (VOW), said it was forging a truckmaking alliance.

The DAX Index (DAX) dropped 3.4 percent to 6,050.29 at the close of trade in Frankfurt. The benchmark gauge lost 7.4 percent in May amid growing concern that Greece will be forced to leave the euro area and Spanish banks will seek bailouts. The broader HDAX Index also retreated 3.3 percent.

“The weak data from China is one of the main themes of the moment,” said Mikkel Kirkegaard Petersen, a senior equity specialist at Nordea Private Bank in Copenhagen. “Today’s numbers have not made us more confident and investors are selling because of this. The biggest part of the German car industry’s growth comes from China and they will get hammered if China growth recedes.”

China’s purchasing managers’ index expanded at the weakest pace since December last month, falling to 50.4 from 53.3 in April, the statistics bureau and logistics federation said today in Beijing. This compares with the 52 median estimate in a Bloomberg News survey of 27 economists. A reading above 50 indicates expansion.

A separate gauge from HSBC Holdings Plc and Markit Economics showed a seventh straight contraction, the longest since the global financial crisis.

Euro-Area Unemployment

Euro-area unemployment reached the highest on record as a deepening economic slump and budget cuts prompted companies from Spain to Italy to cut jobs. The jobless rate was at 11 percent in April and March, the European Union’s statistics office in Luxembourg said today. That’s the highest since the data series started in 1995 and in line with the median forecast of 28 economists in a Bloomberg survey. The March figure was revised up to 11 percent from 10.9 percent.

Euro-region manufacturing output contracted for a 10th month in May as the economy struggled to regain strength amid the deepening debt crisis.

A gauge of manufacturing in the 17-nation euro area fell to 45.1 from 45.9 in April, London-based Markit Economics said today. That’s the lowest since mid-2009. It had previously reported the May output indicator at 45. A reading below 50 indicates contraction.

U.S. Hiring

Employers in the world’s biggest economy added the smallest number of workers in a year in May and the unemployment rate unexpectedly increased as job-seekers re-entered the workforce, further evidence that the labor-market recovery is stalling.

Payrolls climbed by 69,000 last month, less than the most- pessimistic forecast in a Bloomberg News survey, after a revised 77,000 gain in April that was smaller than initially estimated, U.S. Labor Department figures showed today in Washington. The median estimate called for a 150,000 May advance. The jobless rate rose to 8.2 percent from 8.1 percent, while hours worked declined.

Manufacturing in the U.S. grew at a slower pace in May as factories tempered production and pared inventories in response to weakness in the global economy.

The Institute for Supply Management’s factory index fell to 53.5 after reaching a 10-month high of 54.8 in April, the Tempe, Arizona-based group reported today. Readings greater than 50 signal growth. The median projection of economists surveyed by Bloomberg News called for a decrease to 53.8 in May.

Carmakers Fall

BMW retreated 3.9 percent to 58.72 euros after it said Germany’s car market won’t grow in 2012 following a jump in 2011. “Last year was an exceptionally positive year for us in Germany,” said Karsten Engel, the carmaker’s head of sales and marketing in Germany.

Volkswagen dropped 4.1 percent to 123.75 euros. Europe’s largest carmaker will appoint a new trucks chief, add an executive to oversee China and replace three members of Audi’s board as part of a management shakeup to push forward with growth plans, according to people familiar with the matter.

Daimler AG (DAI) fell 5.1 percent to 35.52 euros after it was cut from sell to buy at Bankhaus Metzler in Frankfurt by equity analyst Juergen Pieper.

Infineon (IFX), Europe’s second-largest semiconductor maker, declined 5.7 percent to 6.03 euros, its lowest price this year.

Deutsche Bank Drops

Deutsche Bank AG (DBK) fell 4.2 percent to 27.15 euros. Germany’s largest lender borrowed 9 billion euros ($11.1 billion) from the European Central Bank through its Spanish and Italian units after saying it took only “a small amount” in a second round of emergency funding.

Deutsche Bank SA Espanola, the lender’s Spanish unit, took 5.5 billion euros and Deutsche Bank SpA, the Italian arm, borrowed 3.5 billion euros in the ECB’s second longer-term refinancing operation in February, according to annual reports filed by the two divisions.

Deutsche Bank said it named a new 15-member executive committee for its investment bank after Anshu Jain, the sole head of the unit since 2010, moved up to become co-chief executive officer with Germany head Juergen Fitschen.

Commerzbank AG (CBK), Germany’s second-biggest lender, fell 2 percent to 1.31 euros.

MAN rose 2.2 percent to 79.07 euros after Volkswagen’s decision to strengthen ties with the truckmaker and Scania.

“MAN has been driven up today by the news that VW will make crucial decisions in the personnel for the integrated commercial vehicle group,” said Helena Wuestenfeld, an analyst at Bankhaus Metzler in Frankfurt.

Scania AB Chief Executive Officer Leif Oestling will join Volkswagen’s management board to help coordinate synergies between the truckmaking operations.

To contact the reporter on this story: Jonathan Morgan in Frankfurt at

To contact the editor responsible for this story: Andrew Rummer at

Stocks Skid 2%, Dow Negative for 2012; Vix Soars - CNBC

Stocks plunged near session lows on the first day of June, with the Dow trading in negative territory for 2012, as a disappointing government jobs report in addition to dismal data from China and Europe fueled worries over the health of the global economy.

Whether the stock selloff continues through the summer "really depends on the government," said Doug Roberts, managing partner at Channel Capital Research. "If [the Fed] starts making news about QE3, than you can start to see this [selloff] is going to be relatively short-lived."

The Dow Jones Industrial Average dropped nearly 250 points, led by H-P [HPQ  Loading...      ()   ] and AmEx [AXP  Loading...      ()   ], after logging its worst May since 2010.

The S&P 500 and the Nasdaq both fell more than 2 percent to enter correction territory.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, jumped above 26.

All 10 S&P sectors were firmly in negative territory, led by financials and consumer discretionary.

The U.S. added just 69,000 new jobs in May while the unemployment rate grew to 8.2 percent, fueling speculation that the Fed might be prompted to intervene with another round of quantitative easing. Economists polled by Reuters had expected nonfarm payrolls to increase 150,000 and the jobless rate to hold steady at 8.1 percent.

"It's painfully obvious the economic recovery in the U.S. isn't just slowing down, it's pulling up the emergency brake," said Todd Schoenberger, managing principal The BlackBay Group.

Also on the economic front, construction spending rose a less-than-expected 0.3 percent and the Institute for Supply Management's manufacturing index also came in light at 53.5—still in expansion territory but reflective of a slowdown.

"We think it is increasingly likely the Fed will announce another round of QE at the Aug. 1 or Sept. 13 meeting," Michelle Meyer, senior economist at Bank of America Merrill Lynch, told clients in a note. "The Fed will not sit idle as the economy slows."

Bond yields found new historic depths, with the 10-year Treasury note yield dropping below 1.5 percent and the 30-year bond touching its all-time low, while energy prices hit three-year lows as well and metals including gold surged.

Adding to woes, China's slowdown worsened in May as its factories saw a further deterioration in demand at home and abroad. The darkening outlook was underlined by data showing the fourth monthly decline this year in exports from South Korea, as shipments to the United States, Europe and China all fell.

Oil prices fell to their lowest since October 2011, while gold surged more than 4 percent to trade above $1,620 an ounce, logging its biggest one-day gain in more than two years as investors rushed to the yellow metal as a safe-haven.

Gold mining stocks were sharply higher, with Barrick Gold [ABX  Loading...      ()   ] leading the way and Newmont Mining [NEM  Loading...      ()   ] topping the S&P 500 performers.

European shares finished sharply lower amid lingering fears over the debt-ridden economies of Greece and Spain.

This comes after Spain unveiled Thursday that almost 100 billion euros ($123.25 billion) had left the country in the first three months of the year and the head of the European Central Bank (ECB) lambasted its handling of Bankia, the nation's troubled lender.

Meanwhile, Facebook [FB  Loading...      ()   ] continued to trade in negative territory. The social networking giant is on track to post the biggest two-week loss of any IPO since 1995. It is down nearly 28 percent from its IPO price of $38 a share.

Groupon [GRPN  Loading...      ()   ] .o>slumped after the IPO lock-up on the stock sales by insiders of the company ended. Insiders are typically prevented from selling for six months after an IPO.

Beacon Federal Bancorp [BFED  Loading...      ()   ] was also a rare stock trading in positive territory, after the company said it will be acquired by Berkshire Hills Bancorp [BHLB  Loading...      ()   ] for $132 million.

And Hughes Telematics [HUTC  Loading...      ()   ] soared on news that Verizon [VZ  Loading...      ()   ] would buy the company for $612 million in cash, or $12 a share to beef up its enterprise business.

—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)

On Tap Next Week:

MONDAY: Factory orders; Earnings from Dollar General
TUESDAY: ISM non-mfg index; earnings from Hovnanian
WEDNESDAY: Weekly mortgage apps, ECB announcement, productivity and costs, oil inventories, Fed's Beige Book, Fed's Lockhart speaks, Fed's Lockhart speaks, Fed Basel III vote
THURSDAY: Bank of England announcement, jobless claims, Bernanke speaks, quarterly services survey, Fed's Lockhart speaks, Fed's Kocherlakota speaks, consumer credit; Earnings from Lululemon Athletica, JM Smucker
FRIDAY: International trade, wholesale trade, Fed's Kocherlakota speaks, Chesapeake annual meeting

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Shelley Zapp, President of UNIT4 Business Software, Recognized as "Executive of the Year" by VIATeC Technology Awards - Market Wire

VICTORIA, BRITISH COLUMBIA and MANCHESTER, NEW HAMPSHIRE--(Marketwire - June 1, 2012) - Shelley Zapp, president of UNIT4 Business Software, has been recognized as the "Executive of the Year" last night from the Victoria Advanced Technology Council (VIATeC). UNIT4 Business Software is a local subsidiary of a worldwide company UNIT4, the world's leading provider of ERP solutions for Businesses Living IN Change (BLINC™). The company competes successfully against multi-billion dollar giants such as SAP, Oracle, and Microsoft thanks to Agresso Business World. The company has been steadily expanding its business throughout North America, and has enjoyed strong growth over the last five years while also growing its employee footprint locally in Victoria.

The VIATeC Technology Awards celebrate each year the achievements of companies that are responsible for making Greater Victoria the fastest growing technology region in British Columbia. The Executive of the Year award recognizes an individual who had a significant impact on the success of an organization as a direct result of their leadership.

Shelley Zapp joined the company as a developer 13 years ago. Shelley's hard work and dedication enabled her to rise through the ranks and assume the role of President in 2004. Since that time, Shelley has grown the company to five times its size and revenue. These achievements positioned the North American subsidiary as one of the top performing divisions of the UNIT4 group globally. Shelley's wisdom, integrity, social judgment and effective leadership established her as the leading country manager within the group.

"It's a great honour to be recognized by peers last night," said Shelley Zapp, president of Unit4 Business Software. "I am very fortunate to work for such a great company and be part of a talented team. I owe this award to our collaborative culture driven by the "can-do" attitude of everyone at UNIT4 Business Software".

About VIATeC

VIATeC is the conduit that connects people, knowledge and resources to grow a successful technology sector in Greater Victoria. The organization was founded in 1989 to promote and enhance the development of the local advanced technology industry. Since its inception, the Victoria tech sector has grown to over 1,100 technology companies, employing more than 15,000 people and generating in excess of $1 billion in annual revenues.

About UNIT4 Business Software

UNIT4 Business Software in North America ( is a wholly-owned subsidiary of UNIT4, a global business software and services company aimed at helping dynamic public sector and non-profit organizations, as well as people and service-centric companies, to embrace change simply, quickly and cost effectively in a market sector it calls 'Businesses Living IN Change' (BLINC)™. Agresso Business World is widely acknowledged as the business software solution that delivers the lowest Total Cost of Change. The software's unique Vita architecture allows for ongoing, post-implementation changes by business users, without the external IT costs typical of disparate systems.

Over 3,000 companies and organizations in 100 countries deploy Agresso Business World for both operational support and strategic management. The company's role-based, Web Services and Services-Oriented Architecture (SOA) enabled solutions include Financial Management, Human Resources and Payroll, Procurement Management, Project Costing and Billing, Reporting and Analytics, Business Process Automation, and Field Services and Asset Maintenance.

The names of actual companies or products mentioned herein may be the trademarks of their respective owners. Agresso, Agresso Business World and BLINC are registered trademarks of UNIT4 Business Software.

Money Market Savings Account with Top Rate Offered by UFB Direct - Transworld News

Money Market Savings Account with Top Rate Offered by UFB Direct

Atlanta, GA 6/01/2012 03:04 PM GMT (TransWorldNews - Top Story)

UFB Direct, a division of BofI Federal Bank, has recently launched their new money market account, a product that comes with one of the most competitive rates in the industry. UFB Direct has set their current rate, as of June 1, 2012, for account balances between $5,000 - $250,000 at 1.15% APY.

In addition to the high money market interest rate offered by UFB Direct, there are no monthly maintenance fees for accounts with a minimum $5,000.00 average daily balance. Along with their great rate UFB Direct provides money market account holders with a number of privileges to ensure their banking needs are met.

Opening a money market account through UFB Direct will afford you the opportunity to utilize Mobile Deposits- enabling you to deposit checks from anywhere, take advantage of free online banking with Bill Pay (limited), free mobile banking, email and text messaging alerts, access at no charge online images of checks and statements, make online transfers between your UFB Direct accounts, and many more perks.

The advantage that a money market savings account through UFB Direct holds over regular savings account is the top rate being offered by UFB. Most savings accounts can’t come close to matching the current 1.15% APY offered by UFB Direct, a rate that can produce significant returns for the account holder.

To learn more about the new money market account or any other products offered by UFB Direct visit the company website:

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