YAHOO[BRIEFING.COM]: Though
the highly anticipated December jobs report didn't contain any glum surprises,
stocks still spent the session trading with marked losses amid continued
investor concern.
December nonfarm payrolls
declined 524,000, in-line with the 525,000 job losses that were widely
expected.
While the numbers weren't as
bad as feared, investors remain mindful that overall economic conditions are
dour. Specifically, December unemployment is at a multiyear high of 7.2%, while
total job losses for 2008 were the most since 1974, and are expected to
increase.
Boeing (BA 44.45, -0.34) announced it would cut
jobs in its commercial airplane business. The Wall Street Journal
reported that oil drillers Schlumberger (SLB 43.01, -2.82) and
Halliburton (HAL 19.01, -2.15) were also cutting staff.
The job cuts come amid ongoing
economic headwinds. Such headwinds have many companies issuing cautious
earnings outlooks. Coach (COH 18.11, -2.79) and CVS
Caremark (CVS 25.69, -3.65) lowered their earnings estimates below
analysts' forecasts, while Chevron (CVX 72.82, -1.42) expects
fourth quarter earnings to be significantly lower than the third quarter
results. Chevron earned $3.85 per share in the third quarter. The consensus
fourth quarter estimate calls for $1.78 per share.
Best Buy (BBY 28.08, -1.57) narrowed its full-year
outlook after its December same-store sales fell 6.5%. Best Buy expects
adjusted earnings to range from $2.50 and $2.70 per share. The current
consensus stands at $2.61.
The tepid outlooks have made
market participants cautious about enter the fold ahead of earnings season,
which officially begins Monday when Dow component Alcoa
(AA 10.81, -0.55) reports its latest results.
With expectations for earnings
season low, investors are making note of the companies that trade with strength
on better-than-expected results. Private education provider Apollo
Group (APOL 85.27, +8.05) brought in $1.12 per share during its latest
quarter. That topped the consensus estimate of $0.98 per share.
APOL's advance lent support to
other education providers, which often benefit from higher enrollment amid
higher unemployment.
Overall, though, the broader
market finished near its session low, and down 4.5% for the week. All 10
economic sectors closed lower.DJ30 -143.28 NASDAQ -45.42 NQ100 -2.4% R2K -4.1%
SP400 -2.7% SP500 -19.38 NASDAQ Dec/Adv/Vol 2046/694/1.95 bln NYSE Dec/Adv/Vol
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