July 6 - Summary of business headlines: Stocks fall 1 percent as lackluster job growth worries investors; Best Buy to cut 2,400 additional jobs; Navistar tumbles 15 percent on engine re-start. Conway G. Gittens reports.
PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL A dismal jobs report dashes hope the U.S. economy is shaking off a mid-year swoon, leaving the Dow with a triple-digit hangover and the rest of Wall Street feeling weak in the knees. But it was a split decision for the week with blue chips down and the Nasdaq unchanged. The U.S. economy added a weaker-than-expected 80,000 jobs in June, hardly enough to make a dent in the nation's 8.2 percent unemployment rate..and hardly enough to move the Federal Reserve. Michael Gapen, Senior U.S. Economist at Barclays Capital: SOUNDBITE: MICHAEL GAPEN, SENIOR U.S. ECONOMIST, BARCLAYS CAPITAL (ENGLISH) SAYING: "The number today we are saying is probably something the Fed had in mind when they extended Operation Twist so we wouldn't say this number alone would be enough to propel them into more action, we think they'll want to see more data we tend to think it's more of a September decision than an August decision but they very well may." Best Buy added to the dismal jobs news Friday. The struggling consumer electronics chain plans to cut about 2,400 jobs including 600 of its Geek Squad workers, according to confirmation from the company, that's on top of the planned job losses tied to 50 store closings announced earlier in the year. The stock of the day is Navistar- which had the distinction of being the biggest percentage loser on the NYSE - down 15 percent. Investors question the U.S. truck and engine maker's strategy after announcing plans to develop a new engine that will pass regulatory approval. Moving overseas: European stocks suffered their biggest blow in about two weeks as global economic worries take their toll. Conway Gittens, Reuters