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The S&P 500 suffers worst week in 2 years

Friday, August 01, 2014 - 02:41

Friday's jobs report showed employment growth slowing, but still robust; U.S. auto sales slow; Procter & Gamble and Expedia fly high; GoPro hits the skids. Lily Jamali reports.

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Markets ended the day lower across U.S. indexes - and sectors - Friday - but avoided the kind of steep selloff we saw Thursday. The S&P 500 saw its steepest weekly drop in two years. The Dow and the Nasdaq also finished lower. On this jobs report Friday - job growth in July showing a slowdown but the recovery appears robust. The economy added 209,000 jobs - marking six months of strong gains. But the unemployment rate ticked slightly higher as well - giving way to chatter that the Fed may keep interest rates low for longer. Geoff Hoffmann is CEO of executive hiring firm DHR International. He says the jobs market recovery still feels fragile. SOUNDBITE: GEOFF HOFFMANN, CEO, DHR INTERNATIONAL (ENGLISH) SAYING: "It doesn't feel like we're on a definitive growth path. Maybe that's some overhang from weak first quarter which I think was driven largely by the bad weather the country experienced. But we'll see. I mean the second quarter was a great snapback. Hopefully that continues into the third quarter. That's certainly what we're anticipating and what we've seen so far." The improving job market keeping consumer sentiment steady in late July. And the economic data kept on coming Friday. U.S. auto sales growth slowing down slightly in July - despite heavy discounting by automakers. The U.S. manufacturing sector expanded last month at the fastest pace in more than three years thanks to new orders. World oil prices fell to a two-week low on oversupply and slowing demand. Major markets in Europe - from the UK to Germany to France - also finishing lower Friday. John Canally of LPL Financial says European woes had a sour impact on world markets. SOUNDBITE: JOHN CANALLY, SENIOR RESEARCH ANALYST, LPL FINANCIAL (ENGLISH) SAYING: "Their Consumer Price inflation year-over-year in the month of July was up just 4/10ths or 5/10ths. That's pretty close to deflation. The ECB meets next week. I think the ECB can help give the market a big boost if it hints more strongly that they're going to take some more action to help combat the deflation in the Eurozone." In company news: Friday's gainers include: Procter and Gamble. The world's largest household products maker reporting a sizable jump in quarterly profit. P&G also said it will sell off more than half its brands. Travel booking site Expedia shares - flying high - on better-than-expected quarterly results. And Tesla saw its share price speed higher after the electric carmaker announced plans to build more than 60,000 cars next year. Not such a good Friday for wearable camera maker GoPro which reported a large quarterly loss as costs almost doubled.

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The S&P 500 suffers worst week in 2 years

Friday, August 01, 2014 - 02:41

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