Job numbers are WAY below expectations! This with record oil and milk prices is depressing stuff!
By ADAM GELLER, AP Business Writer
NEW YORK - Stocks fell sharply Friday as investors reacted to a new report showing the economy created far fewer jobs in July than analysts had expected.
In morning trading, the Dow Jones industrial average was down 101.91, or 1 percent, to 9,861.12.
Broader stock indicators also fell. The Standard & Poor's 500 index was down 10.68, or 1 percent, to 1,070.02, and the Nasdaq composite index was down 26.46, or 1.5 percent, to 1,795.17.
The decline in stocks came as traders pored over new payroll figures showing employers added just 32,000 jobs last month, low enough to warrant worries that a slowing in the economy in June may have been more just a brief pause.
The July job report reflects the weakest increase in hiring since December and comes after a revised gain of just 78,000 in June, even less than previously reported. Economists had forecast the creation of roughly 243,000 jobs for July.
Analysts said the weak jobs report was seeding doubts among investors about the overall strength of the economy, and raising new doubts about what the Federal Reserve (news - web sites) board of governors will do next week when it meets to discuss interest rates. The Fed had widely been expected to raise rates.