Financials broadly lower on jobs report
07/06 11:24 AM
NEW YORK (MarketWatch) -- Capping off a week of volatility, financial stocks traded broadly lower on Friday as investors grappled once again with bleak economic data -- this time a jobs report that fell short of expectations and underscored weakness in hiring trends.
The Labor Department said Friday the U.S. added 80,000 jobs in June while the unemployment rate remained constant at 8.2%. Economists polled by MarketWatch projected an increase of 100,000.
Insurers fared the worst, with several firms such as Lincoln National Corp. (LNC:$20.6125,$-0.5675,-2.68%) and Hartford Financial Services Group Inc. (HIG:$16.73,00$-0.53,00-3.07%) losing more than 2%.
Among the big banks, Morgan Stanley (MS:$14.32,00$-0.19,00-1.31%) led decliners with a 1.5% loss, while J.P. Morgan Chase & Co. shed 0.9%. J.P. Morgan, which is being investigated in connection with Barclays' (BCS:$10.26,00$-0.19,00-1.82%) rigging of the London interbank offered rate, or Libor, as well as over its alleged manipulation of the energy market in California, reports second-quarter earnings next week.
"On the whole, this employment report adds to the recent flurry of dismal economic data signaling further weakness in overall economic activity, as ongoing anxiety about the situation in Europe and domestic uncertainty about the fiscal outlook continue to temper business hiring and investment decision," Millan Mulraine, an analyst with TD Securities, wrote in a note to clients Friday.
All of the other Dow Jones Industrial Average financial components were in negative territory, with Travelers Cos. Inc. (TRV:$63.03,00$-0.93,00-1.45%) down by 1.1%, American Express Co. (AXP:$58.46,00$-0.79,00-1.33%) declining 0.9%, and Bank of America Corp. (BAC:$7.73,00$-0.09,00-1.15%) falling by 0.7%.
The Financial Select Sector SPDR ETF, which tracks the financial stocks in the S&P 500 , retreated 0.9%. The KBW Bank Index , which tracks the 24 leading U.S. banks, trimmed 0.6%.
