BLOOMFIELD HILLS (WWJ/AP) – It was a wild day on Wall Street, a day after the Dow’s worst decline since 2008.
The new jobs report caused the Dow to climb as many as 171 points at the start of trading. Less than ten minutes after that peak, all the gains had disappeared. Between 10 a.m. and 10:30 a.m., the Dow dipped, rallied, fell, then rose again, only to wind up little change at the end of the half-hour.
The swings continued all day. The index spent much of the morning and early afternoon down, falling by as many as 243 points. By the closing bell, it had bounced back and was up nearly 61 points.
The Dow closed up 61 points, or 0.5 percent, at 11,445. The S&P 500 closed down a point, or 0.1 percent, at 1,199. The Nasdaq composite index closed down 24, or 0.9 percent, at 2,532.
The U.S. government reported that some 117,000 jobs were created in July and that the unemployment rate inched down to 9.1 percent from 9.2 percent in June. But, while better than most analyst expectations, the rate of job growth was still far too low for a healthy economy and could not alleviate concern that the U.S. may fall back into recession.
WWJ Newsradio 950 spoke with David Sowerby, of Loomis Sales & Company in Bloomfield Hills, who said there’s global uncertainty here and in Europe.
“How long is the problem gonna last? Is it now creeping into Italy as well as Spain, Portugal, Ireland, and Greece … you name it,” Sowerby said.
“U.S, the debt and deficit issue…it’s solved for the near term , but it’s not solved , frankly, for the long term and all that’s weighing heavily on the economy, consumer confidence, investor confidence,” he said.
“The average stock is trading about 17 percent down from its 52 week high, so this , this is turning into a true test of conviction,” Sowerby said.
Sowerby said gold is still up 1 5percent this year — a good place to make money, which the stock market has not been. But, hhe thinks the stock market will end the year higher, although it will have to bottom out first.
The Associated Press contributed to this report.