The jobs picture is looking a little fuzzy, and that lack of clarity is not helping Wall Street. Stocks (^DJI, ^GSPC, ^IXIC) and oil prices (CLH16.NYM) are struggling to make headway after another volatile week.
The U.S. economy cranked out fewer jobs than economists were expecting last month. The Labor Department reported that 151,000 jobs were added in January. However, there were some bright spots: the unemployment rate fell below 5% to 4.9% for the first time since 2008, and workers took home a little more pay—average hourly earnings rose 2.5% in January compared to a year ago.
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LinkedIn (LNKD) shares hit a 52-week low in early trading after the professional networking site provided a weaker-than-expected profit and revenue outlook for its current quarter. The company and analysts cited headwinds in its online sales business, economic pressure overseas, and its decision to pull the plug on an advertising product launched last year. This comes as it posted a beat on both its top and bottom lines in the fourth quarter.
News Corp. (NWSA), Rupert Murdoch's media conglomerate, which owns the Wall Street Journal and the New York Post, handed in fiscal second-quarter earnings that missed analysts' estimates, as ad sales declined and the stronger U.S. dollar weighed on profits. But revenue came in slightly above forecasts even though sales fell for the fourth straight quarter.
Symantec (SYMC), the company behind the Norton antivirus software, said private equity firm Silver Lake Partners has invested $500 million in the company and will be getting a board seat. The cyber security software firm also reported better-than-expected quarterly results, and said it would will return $5.5 billion to shareholders through a stock buyback and special dividend after the recent sale of its storage division.
Tyson Foods (TSN), the biggest U.S. meat processor, delivered earnings per share that blew past estimates with profit jumping 49% from a year earlier thanks to lower feed and livestock costs. However, revenue missed estimates, with sales down 15% from a year earlier, and the company’s guidance for the year was mixed.
Oil tax?
President Obama wants to make oil a little more expensive. He's calling for a $10 dollar a barrel tax to pay for transportation and climate change initiatives. As you can imagine, the industry and Republicans in Congress aren't thrilled about that.
Health care alliance
And finally, several big companies are teaming up to try to keep health insurance costs down. The Wall Street Journal says 20 firms including Verizon (VZ), IBM (IBM) and Coca-Cola (KO) are joining what is called the Health Transformation Alliance that will share information about employee health spending and outcomes—and perhaps use the companies' collective clout to negotiate lower prices.
