Stocks, S&P take dive after disappointing jobs report
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.