Stocks Opened Mixed after Payrolls
U.S. stocks opened mixed on Friday, as investors weighed the chances a weaker-than-expected U.S. jobs report will spur the Federal Reserve to launch another round of economic stimulus. The Dow Jones Industrial Average lately gained 23.03 points to 13,315.03 and the S&P 500 index rose 4.77 points to 1,436.89. The Nasdaq Composite was nearly flat to 3,135.88.
Jobs growth slowed sharply in August, setting the stage for the Federal Reserve to pump additional money into the sluggish economy next week and dealing a blow to President Obama as he seeks reelection in November.Nonfarm payrolls increased only 96,000 last month, the Labor Department said on Friday. While the unemployment rate dropped to 8.1 percent from 8.3 percent in July, that was because so many Americans gave up the hunt for work.
Intel Corp cut its third-quarter revenue estimate and withdrew its full-year forecast, saying demand for its chips declined as customers reduced inventory and businesses bought fewer personal computers. The company said on Friday it expects third-quarter revenue of $13.2 billion, plus or minus $300 million, down from its previous forecast of $13.8 billion to $14.8 billion. Full-year capital spending is expected to be below the low-end of its previous forecast of $12.1 billion to $12.9 billion.
China has given the green light for 60 infrastructure projects worth more than $150 billion as it looks to energise an economy mired in its worst slowdown in three years, fuelling hopes the world’s growth engine may get a lift from the fourth quarter.
President Vladimir Putin promised Asia and Pacific leaders meeting in the seaport of Vladivostok on Friday that they could count on Russia to be a reliable energy supplier and provide a bridge to Europe that can help revitalize regional trade.