Stocks, S&P take dive af­ter dis­ap­point­ing jobs re­port

The Buffalo News - - BUSINESS - – Wash­ing­ton Post – Bloomberg News Al­lied Mo­tion buys TCI – Matt Glynn – Bloomberg News

Oil prices spiked and stocks dove on Fri­day as un­cer­tainty roiled global mar­kets.

The Dow Jones in­dus­trial av­er­age slid 559 points, or 2.2 per­cent, to 24,388 on a dis­ap­point­ing jobs re­port Fri­day morn­ing that seemed to ce­ment wor­ries that an eco­nomic slow­down is ahead.

The Stan­dard and Poor’s 500-stock in­dex was down 2.2 per­cent and the Nas­daq Com­pos­ite re­treated 3 per­cent Fri­day, adding to a wild week in which the ma­jor in­dices fell more than 4 per­cent. Some, like the Nas­daq, have hit cor­rec­tion ter­ri­tory, or a de­cline of 10 per­cent from a 52-week high. The S&P 500 is close to that mark with a 9.5 per­cent de­cline from its re­cent high.

Tech­nol­ogy and fi­nan­cial sec­tors were among the sec­tors that were hurt the most. Chip stocks were get­ting shel­lacked for their worst week since March. Ap­ple dropped an­other 3.4 per­cent in af­ter­noon trad­ing. The iPhone maker is in re­treat for the ninth of the last 10 weeks.

The la­bor re­port that showed Novem­ber pri­vate-sec­tor job gains of 155,000 ver­sus the 198,000 that were ex­pected. But wage growth con­tin­ued to show year-over-year gains of more than 3 per­cent.

JPMor­gan pre­dicts growth

Next year will be bet­ter for stock in­vestors, ac­cord­ing to JPMor­gan Chase & Co., which is join­ing other Wall Street bulls in fore­cast­ing big gains for 2019.

The S&P 500 In­dex will rise about 17 per­cent from cur­rent lev­els to 3,100 by the end of next year, driven by profit growth and in­vestors’ will­ing­ness to ac­cept higher val­u­a­tions, strate­gists led by Dubravko Lakos-Bu­jas and Marko Kolanovic wrote in a note to clients Fri­day. The pre­dic­tion is slightly higher than the av­er­age es­ti­mate of 3,056 from 14 other strate­gists sur­veyed by Bloomberg.

In­vestors who have turned away from the stock mar­ket as the benchmark in­dex heads to one of its worst per­for­mances in the nine-year bull mar­ket will be lured back as com­pa­nies spend more than $1.5 tril­lion on div­i­dends and share re­pur­chases, JPMor­gan wrote. Hedge funds in par­tic­u­lar hold fewer stocks than nor­mal, and just a re­turn to av­er­age would mean $500 bil­lion pour­ing into U.S. eq­ui­ties, ac­cord­ing to the in­vest­ment bank.

Al­lied Mo­tion Tech­nolo­gies, an Amherst-based com­pany which de­signs and makes pre­ci­sion mo­tion control prod­ucts, has ac­quired TCI for $64 mil­lion.

TCI has 165 em­ploy­ees and is based in Wis­con­sin. The com­pany de­vel­ops and makes prod­ucts that re­solve power qual­ity and har­monic is­sues as­so­ci­ated with in­dus­trial power con­ver­sion. TCI ex­pects to gen­er­ate rev­enues of about $45 mil­lion this year.

Tesla hints at GM pur­chase

Tesla Chief Ex­ec­u­tive Of­fi­cer Elon Musk told CBS’ “60 Min­utes” that he may be will­ing to buy some of the five fac­to­ries Gen­eral Mo­tors Co. will idle next year, mak­ing him the sec­ond ri­val in two days to step up with pos­si­ble job-cre­at­ing moves as GM takes po­lit­i­cal heat for cut­ting work­ers.

Musk made the state­ments in an in­ter­view with Leslie Stahl that will air Sun­day. CBS re­leased ex­cerpts Fri­day.

GM CEO Mary Barra was in Wash­ing­ton the past two days meet­ing with mem­bers of Congress about her plans to close five fac­to­ries in North Amer­ica and lay off 14,700 work­ers. She is un­der pres­sure to keep some of those fa­cil­i­ties opened.

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