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Rising Oil Prices Overshadow Drop in the Jobless Rate
By THE ASSOCIATED PRESS
Published: March 4, 2011
Stocks fell on Friday after another spike in oil prices overshadowed a report that the unemployment rate fell to its lowest level in nearly two years. Crude oil rose 2.5 percent, to $104.42 a barrel, the highest level since September 2008, after fighting in Libya escalated. Markets have been rattled over the last two weeks as higher oil prices threaten to undermine the economic recovery by increasing transportation and production costs.
Higher energy prices sent stocks lower despite news that the nation’s job market was improving. The Labor Department reported that the unemployment rate fell to 8.9 percent in February from 9 percent the previous month. The rate has dropped for three consecutive months and is at its lowest level since April 2009. Employers added 192,000 jobs in February, the fastest rate in almost a year.
“They’re tugging at each other, employment and oil,” said Jack Ablin, chief investment officer of Harris Private Bank. “Oil is high enough that it has to be a concern. The longer it remains at this level the greater the chance that it upends our recovery.”
The Dow Jones industrial average fell 88.32 points, or 0.72 percent, to 12,169.88. The Dow had been down as many as 178 points earlier.
The Standard & Poor’s 500-stock index fell 9.82 points, or 0.74 percent, to 1,321.15. The Nasdaq composite index fell 14.07 points, or 0.50 percent, to 2,784.67.
All 10 company groups that make up the S.& P. index fell. Financial companies fell 1.3 percent, the largest drop. Citigroup fell 3 percent and the Goldman Sachs Group fell 2.1 percent after Bank of America analysts trimmed their earnings forecasts for the two banks. Analysts noted that they expected the turmoil in the Middle East to make institutional investors more cautious with their cash, leading to a drop in trading revenue.
Each index eked out small gains for the week. The Dow had the largest move, inching up 0.3 percent.
Wal-Mart Stores raised its annual dividend 21 percent Friday. Its stock gained 0.1 percent, to $52.07.
Interest rates were lower. The Treasury’s benchmark 10-year note rose 17/32, to 101 4/32, and the yield fell to 3.49 percent from 3.55 percent late Thursday.
The dollar was weaker against other major currencies.
The euro traded at $1.3987, up from $1.3959 late Thursday. The dollar faded to 82.32 Japanese yen from 82.37 yen.
A version of this article appeared in print on March 5, 2011, on page B6 of the New York edition.
Rising Oil Prices Overshadow Drop in the Jobless Rate
By THE ASSOCIATED PRESS
Published: March 4, 2011
Stocks fell on Friday after another spike in oil prices overshadowed a report that the unemployment rate fell to its lowest level in nearly two years. Crude oil rose 2.5 percent, to $104.42 a barrel, the highest level since September 2008, after fighting in Libya escalated. Markets have been rattled over the last two weeks as higher oil prices threaten to undermine the economic recovery by increasing transportation and production costs.
Higher energy prices sent stocks lower despite news that the nation’s job market was improving. The Labor Department reported that the unemployment rate fell to 8.9 percent in February from 9 percent the previous month. The rate has dropped for three consecutive months and is at its lowest level since April 2009. Employers added 192,000 jobs in February, the fastest rate in almost a year.
“They’re tugging at each other, employment and oil,” said Jack Ablin, chief investment officer of Harris Private Bank. “Oil is high enough that it has to be a concern. The longer it remains at this level the greater the chance that it upends our recovery.”
The Dow Jones industrial average fell 88.32 points, or 0.72 percent, to 12,169.88. The Dow had been down as many as 178 points earlier.
The Standard & Poor’s 500-stock index fell 9.82 points, or 0.74 percent, to 1,321.15. The Nasdaq composite index fell 14.07 points, or 0.50 percent, to 2,784.67.
All 10 company groups that make up the S.& P. index fell. Financial companies fell 1.3 percent, the largest drop. Citigroup fell 3 percent and the Goldman Sachs Group fell 2.1 percent after Bank of America analysts trimmed their earnings forecasts for the two banks. Analysts noted that they expected the turmoil in the Middle East to make institutional investors more cautious with their cash, leading to a drop in trading revenue.
Each index eked out small gains for the week. The Dow had the largest move, inching up 0.3 percent.
Wal-Mart Stores raised its annual dividend 21 percent Friday. Its stock gained 0.1 percent, to $52.07.
Interest rates were lower. The Treasury’s benchmark 10-year note rose 17/32, to 101 4/32, and the yield fell to 3.49 percent from 3.55 percent late Thursday.
The dollar was weaker against other major currencies.
The euro traded at $1.3987, up from $1.3959 late Thursday. The dollar faded to 82.32 Japanese yen from 82.37 yen.
A version of this article appeared in print on March 5, 2011, on page B6 of the New York edition.
