Day five. Investors know that more than 90% of oil and 73% of gas production on on-shore facilities is closed but what about the loss of rigs, platforms, and energy production in the off-shore locations. Investors and so is the much of the nation, still in dark.

Fear of economic slow down gripped the market despite the world-wide commitment to release 60 millions of barrels in the next thirty days. Rise in payroll reported this morning was largely ignored by the market.

Construction equipment, building materials, steel and other commodities rose during the day and week. Energy producers, distributors and refiners came under pressure after rising close to 20% during the week on the news of 60 million barrels release of oil.

Investors largely ignored the employment report, released by the Labor Dept. It indicated that non-farm payroll figures for August rose by 169,000, slightly down vs. the expected rise of 190,000. The jobless rate was reported to be the lowest in four years, at 4.9% compared with previous expectations of 5%.

The payroll data show that the labor market continued gaining speed but Friday’s figures don’t reflect Katrina’s impact. According to economists the economic picture ahead is not painted in bright colors as energy costs are seen as a serious hindrance to economic growth.

Several refineries and oil companies reported production shut-downs and loss of facilities.


ECONOMIC NEWS

The Labor Dept. reported unemployment rate of 4.9% for July which is the lowest level of unemployment since August 2001. Economists had expected unemployment rate to be 5%.
The Labor Department released the August employment report according to which U.S. companies provided 169,000 jobs, slightly down vs. expectations of 190,000.

The increase in monthly employment figure represents increased employment in construction, profession and business services, healthcare and education, financial services. Manufacturing employment continued to decrease for the third month in a row.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks closed mostly higher after mixed early trading. The Nikkei rose 0.74% on optimism about the Japanese economy and hopes that the U.S. Fed Reserve will slow the pace of interest-rate hikes. Blue chips and exporters were among the leading gainers together with automakers which rose on strong monthly sales reports. Across the region Hong Kong’s Hang Seng added 0.5% and South Korea’s Kospi gained 0.3%. The dollar stood at 109.85 against the yen.

European markets closed largely down, though off session lows on positive U.S. jobs report and M&A speculations across the region. The German DAX 30 fell 0.11%, the French CAC 40 was down 0.43%, and London’s FTSE declined 0.03%.

ENERGY, METALS AND CURRENCIES MARKETS

Oil prices tumbled by nearly $2 on oil support from the U.S. and European reserves. Light sweet crude dropped $1.90 to $67.57 a barrel and gasoline dropped 21 cents to $2.18 per gallon. London Brent shed $1.62 to $66.10.

Gold declined in European trading. In London the precious metal closed at $443.70 per ounce, down from $444.20. In Hong Kong gold climbed $11.10 to close at $447.05. Silver traded at $6.99, up from $6.96. In New York gold rose to $445.40 up $1.90 per ounce.

The U.S. dollar fell against most of its major counterparts in European trading. The euro was quoted at $1.2517, up from $1.2487. The dollar bought 109.72 yen, down vs. 109.88. The British pound closed at $1.8404, up from $1.8326.

EARNINGS NEWS

H&R Block, consulting services company, posted a 1Q net loss of 9 cents a share, up vs. 11 cents a share for the same period last year on revenue growth to $615 million from $486.6 million in the year-ago period.

CSK Auto, auto parts supplier, posted 2Q net earnings 29 cents a share, down 14.5% vs. 33 cents a share in the same period last year despite revenue growth to $419 million from $409.1 million the year-ago, but missing analysts’ expectations of $424 million. Same-store sales advanced 1.1% from last year.