• U.S. stocks declined

Market news

1 June 2012

U.S. stocks declined

 

The Dow Jones Industrial Average wiped out its 2012 advance as American employers added the fewest workers in a year, the unemployment rate rose while manufacturing in the U.S., Europe and China disappointed.



Equities tumbled as U.S. payrolls climbed by 69,000 last month, less than the most-pessimistic forecast. The jobless rate rose to 8.2 percent. The Institute for Supply Management’s factory index fell to 53.5 after reaching a 10-month high. A gauge of manufacturing in the euro zone fell to a three-year low while China’s Purchasing Managers’ Index dropped to 50.4 from 53.3, the weakest production growth since December.

Nine out of 10 groups in the S&P 500 fell today as financial, consumer discretionary and technology shares slumped at least 2.2 percent. The Dow Jones Transportation Average dropped 2.5 percent. Bank of America (ВАС) lost 4.1 percent to $7.05. Caterpillar (САТ), the largest maker of construction equipment, lost 1.5 percent to $86.34. Alcoa (AA), the largest U.S. aluminum producer, retreated 1.7 percent to $8.41.

Facebook slipped 4.8 percent to $28.19, almost erasing yesterday’s 5 percent rally. The social-networking company led U.S. IPOs to their worst monthly performance since Lehman Brothers Holdings Inc. collapsed, as Europe’s debt crisis scuttled IPO plans from New York to Hong Kong.

Groupon Inc. retreated 9.8 percent to $9.60, the lowest since it went public in November. The largest daily coupon website declined as a lock-up period expired, permitting insiders to sell shares.

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