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Market Update

Smaller Increase in U.S. Payrolls, Jobless Rate Falls to 7.4%

Author: Nichole Harper
Last Update: 10:41 AM ET August 02 2013

10:40 AM New York Stocks on Wall Street eased a day after record levels in widely followed indexes. U.S. employers added less than expected jobs in July and June gains were revised downward. Asian markets tracked New York gains and closed higher. European markets eased.

U.S. market indexes declined after employers added less than expected workers in July and unemployment rate fell.

Private sector and government at all levels added 162,000 workers in July, the smallest increase in four months and June gains were lowered to 188,000, Labor Department said today.

The agency also said unemployment rate declined to 7.4% from 7.6% and the data is based on a separate sample survey.

U.S. consumer spending in June increased 0.5% after rising 0.2% in previous month, Commerce Department said today.

European Markets

European markets pared back weekly gains after U.S. government report showed smaller than expected increase in employment.

In London, FTSE 100 index decreased 0.6%, in Frankfurt DAX index declined 0.2% and in Paris CAC 40 index fell 0.1%. The Swiss Market Index soared 1.6% tracking gains in world markets after it resumed trading from National Day holiday yesterday.

Deutsche Lufthansa AG declined 4% after the German airline reported first-half operating profit plunged 69%.

IAG, the parent of British Airways said its operating net swung to profit of 134 million euros excluding one-time items compared to 4 million euros loss in the quarter a year ago.

AXA S.A., the second largest insurer in Europe reported first-half operating income of 2.58 billion euros and net income declined less than expected 3%.

Asian Markets

Nine of the ten largest markets in Asia closed higher after a record close on Wall Street sparked a worldwide rally.

Nikkei surged the most with a rise of 3.3% and the yen declined 1.2% and closed at 99.53 against one dollar. Hang Seng and Shanghai Composite Index gained on the prospects of higher exports to the U.S. as economy expanded moderately in the second quarter.

In Mumbai, the Sensex closed fractionally higher after falling for seven days in a row and retailers were in focus after the government eased requirements for international investors in local supermarkets.

U.S. Stocks in Review

AIG (AIG) increased 3% after the insurer estimated net income increased 17% to $2.73 billion and announced quarterly dividend of 10 cents a share.

Chevron (CVX) declined 2.5% after the second largest energy company reported a decline in earnings.

Dell Inc (DELL) rose 4.5% after Silver Lake Management LLC and Michael Dell agreed to lift their offer and pay a special dividend of 13 cents a share and offer $13.75 a share.

LinkedIn (LNKD) soared 10% after the professional networking service on Internet said revenues soared 59% in the second quarter.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc