Aug. 2 - Summary of business headlines: U.S. hiring slows; Stocks comeback to close higher; Dell gets closer to a deal; Viacom profits jump; Weight Watchers stock sinks. Bobbi Rebell reports.
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After flip flopping through Friday's session. stocks climbed higher at the end of the day- and to new records for the Dow and the S&P 500. Among the notable winners: Linked in moving higher a day after its impressive earnings. And Facebook closing above its $38 IPO price.
For the week...The Dow rose 0.6 percent. The S&P 500 1.1 percent. The Nasdaq more than 2 percent (2.1)
European stocks were mixed in a volatile session.
Data showed that while the jobless rate fell in July to a 4-year low- U.S. hiring slowed. That could make the Fed more cautious about scaling back its stimulus plan.
And while there was disappointment that only 162,000 jobs were created last month- the big picture trend is solid says Macquarie Capital Market's David Doyle:
SOUNDBITE: DAVID DOYLE, STRATEGIST, MACQUARIE CAPITAL MARKETS (ENGLISH) SAYING:
"The economy has added now more than 140,000 jobs for 10 straight months . That's the first time since the late 1990's that this has occurred, so there is a trend of hiring or net hiring that is taking place." (41:52)
Dell CEO Michael Dell has boosted his group's bid to take the company private- to close to $25 billion- and is offering a special dividend. The voting rules have been changed- absentee shareholders will no longer be counted as "no" but rather won't be counted at all- a boost for Mr. Dell's group. Carl Icahn, who has been leading a group opposed to the deal tweeted: "We are pleased to have won another battle in the Dell war but the war itself is far from over. More to follow. "
Earnings news included Viacom. Its stock jumped after news that strong advertising and affiliate fees helped boost third quarter revenue. Its also doubling its share repurchase plan.
Chevron stock falling after it posted a steeper than expected 26 percent drop in quarterly profit.
But the biggest pummeling was for Weight Watchers. The value of its shares got a lot lighter after it cut its full year forecast saying its losing customers to free weight loss apps.
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