Questions Arise from Important Unemployment Data as Rate Falls to 7.8% (ZNGA)
[Market prices as of 2:50 PM] On Friday, the biggest news came from the US Labor Department, reporting that the unemployment rate fell to 7.8%, the lowest since January 2009. Although the Dow Jones hit its highest level in almost five years, after the release of the unemployment rate more questions arose about future stimulus measures and both gold prices and the US dollar retreated. Zynga (ZNGA) shares dropped sharply on Friday after cutting its yearly outlook for a second time, also causing Facebook's (FB) stock to fall as well.Investors look to the kickoff of quarterly earnings season next week and cautiously await reports from those such as Alcoa Inc. (AA) and JPMorgan Chase (JPM).
Word on the Street
- US unemployment falls to 7.8%, the lowest since January 2009.
- The possible merger of BAE Systems (BAESY) and EADS (EADSY) still faces some critical questions and problems.
- While Zynga Inc. (ZNGA) shares fell hard other tech stocks rallied on Friday.
- New Deals market still upbeat despite Dave & Buster's cancellation of an IPO.
- Bank of America (BAC) gains 1% and joins others in plans to cut costs.
- Constellation Brands (STZ) posts a lower quarterly profit on wine while beer sales outperform.
- Avon (AVP) chairwoman Jung announces she will be stepping down.
Published on Oct 5, 2012By InvestorGuide Staff