Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Dow Tanks After Strong Jobs Report

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Despite a strong employment report that showed 171,000 jobs added, the Dow Jones Industrial Average (INDEX: ^DJI  ) fell slightly more than 1%, or 139 points, to finish the week at 13,093. The unemployment rate ticked up to 7.9% from 7.8%, even though job growth numbers from August and September were revised upwards by a total of 84,000. For October, businesses added 184,000 jobs, while governments shed 13,000 jobs, better than economist projections of 125,000 new jobs this month. September factory orders reported later in the morning also showed their strongest increase in a year and a half, at 4.8%.

Still, the market seemed unimpressed, as indexes started the day with small gains, but steadily fell until close, as the New York area struggled to recover from the effects of Hurricane Sandy. Investors may have also interpreted the employment numbers as a bonus for President Obama, whereas some believe Mitt Romney would be better for the economy.

Chevron (NYSE: CVX  ) led the downward march today, falling 2.8%, after reporting an underwhelming quarter. A number of events hurt production during the period, including Hurricane Isaac in the Gulf, a refinery fire in California, and an investigation of two oil spills in Brazil. The energy giant was also hurt by lower oil prices during the quarter. Earnings per share fell sharply to $2.69 from $3.92, short of estimates of $2.83. Revenues also declined by about 10%.

Fellow energy producer Chesapeake Energy (NYSE: CHK  ) also got hit hard, falling 7.9%, as the troubled company posted a $2 billion loss on one-time charges. When adjusted for those, Chesapeake turned in a profit of $0.10  a share, struggling with low natural gas prices that have hurt the industry as a whole. Looking ahead, the company plans to focus on oil and natural gas liquids, and cut back on natural gas.

Bank of America (NYSE: BAC  ) was by far the biggest winner on the Dow, gaining 1.1% today. B of A has been on a tear post-Sandy, climbing 8% in the last three days and on particularly heavy volume on Thursday and Friday. The bank plans to lend at least $2.5 billion to businesses affected by the storm, and CFO Bruce Thompson also said his bank may already be above global capital standards according to a recent ruling by the Financial Stability Board.

To learn more about Bank of America's prospects going forward, I recommend picking up a copy of our special premium report, which is all about the financial giant. It details its opportunities and risks, as well as key areas for investors as the bank moves forward with its turnaround strategy. As a free bonus, the report comes with a year's worth of updates, so you don't have to worry about parsing earnings reports or looking out for any other breaking news. To get your copy of this valuable insight now, just click right here.

Jeremy Bowman has no positions in the stocks mentioned above. The Motley Fool owns shares of Bank of America and has the following options: long JAN 2013 $16.00 calls on Chesapeake Energy, short JAN 2014 $15.00 puts on Chesapeake Energy, long JAN 2014 $20.00 calls on Chesapeake Energy, and long JAN 2014 $30.00 calls on Chesapeake Energy. Motley Fool newsletter services recommend Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2093313, ~/Articles/ArticleHandler.aspx, 10/27/2016 1:10:50 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,204.06 4.73 0.03%
S&P 500 2,138.18 -1.25 -0.06%
NASD 5,230.36 -19.91 -0.38%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/27/2016 12:55 PM
^DJI $18206.90 Up +7.57 +0.04%
BAC $17.06 Up +0.19 +1.13%
Bank of America CAPS Rating: ****
CHK $6.13 Up +0.13 +2.17%
Chesapeake Energy CAPS Rating: ***
CVX $101.14 Down -0.05 -0.05%
Chevron CAPS Rating: ****