Market Wrap

kenwind

Stocks
U.S. stocks fell as weaker hiring across the country sent investors scurrying to safer assets, though stocks regained most of their losses late in the session to finish the week firmly in positive territory. Economically sensitive cyclical stocks led the declines, with industrial, energy and financial stocks bearing the brunt of the pain. "We were hoping for good news, and we just didn't get it," said Maris Ogg, president of Tower Bridge Advisors.

Treasurys
Treasurys rose, posting gains on the week, after a weak July payrolls report stoked fears about the strength of the economic recovery, driving investors into safer securities. Gains pushed the two-year yield to hit another fresh record low, of 0.494%, while the 10-year yield fell to a level last seen in April 2009. In another sign the economic recovery may be losing momentum, the payrolls report showed that the U.S. economy lost more jobs than expected in July.

Forex
The dollar fell after the disappointing U.S. jobs report led to fresh concern over the pace of an economic recovery. The euro rose to a three-month high while the dollar flirted with a break below Y85, dropping to its lowest level of 2010 against the yen and threatening to sink to a 15-year low against the Japanese currency. "The market is bracing itself" for a downbeat Fed statement next week, something that is weighing on the dollar, said Chris Turner, head of foreign exchange strategy at ING Financial Markets.