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Payroll pay day on Wall Street

Friday, August 03, 2012 - 02:06

Aug 3 - Summary of business headlines: Stocks surge 2 percent after U.S. hiring picks-up in July; Some Knight Capital customers return as possible buyers lurk; Procter & Gamble beats, Boeing beats Airbus again. Conway G. Gittens reports.

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PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL Wall Street snaps back faster than a rubber band as hiring hits a five-month high. It's the Dow's biggest one-day gain since late-June, with the rest of the market up about 2 percent….that erased four days of losses, leaving stocks up for the week. The economy added 163,000 new positions in July; more than predicted, and the first time in four months payroll gains topped 100,000. The unemployment rate, however, ticked up to 8.3 percent. Wall Street's response, though, was too exuberant for John Lonski of Moody's Capital Markets Group. SOUNDBITE: JOHN LONSKI, CHIEF ECONOMIST, MOODY'S CAPITAL MARKETS GROUP (ENGLISH) SAYING: "The most important fundamentals that give direction to private sector hiring are business sales, which have been very weak, and profitability, which has begun to decline on a year-over-year basis and thus as an investor you would be making a big mistake if you extrapolated too much good news about the future." On the corporate front: Knight Capital rebounds sharply from a two-day sell-off after losing 75 percent of its market value. Some of Knight's major customers started sending orders back to the Wall Street market maker even as possible buyers privately look, or consider looking, at Knight's financial records. Knight's future is in jeopardy after losing $440 million due to a software glitch on Wednesday. It's slow going at Procter and Gamble, but it still beat profit forecasts, despite lower sales. But there's a faster take-off at Boeing. It landed a $5 billion order from Singapore Airline's Silkair, stealing away a key customer from rival Airbus. Turning now to European markets: stocks rose to the best close in four months. Germany up 4 percent. France up more than 4 percent . And the UK up 2.2 percent. Conway Gittens, Reuters

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Payroll pay day on Wall Street

Friday, August 03, 2012 - 02:06