Dow stumbles after touching 29,000 for first time ever

Credit: Reuters Studio
Published on January 11, 2020 - Duration: 01:57s

Dow stumbles after touching 29,000 for first time ever

The Dow Jones Industrial Average made history Friday when it hit 29,000 for the first time in history but a tepid jobs report and caution ahead of the weekend sparked a widespread sell-off.

Conway G.

Gittens wraps up the market action.

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Dow stumbles after touching 29,000 for first time ever

A Wall Street rally ran out of gas Friday shortly after the Dow Jones Industrial Average topped 29,000 for the first time in history.

Stocks retreated from record highs to close Friday's session pretty much at the lows of the day.

Taking some money of the table ahead of the weekend - given tensions in the Middle East - makes sense, says Albion Financial Group's chief investment officer Jason Ware.

(SOUNDBITE)(English): JASON WARE, CHIEF INVESTMENT OFFICER, ALBION FINANCIAL GROUP, SAYING: "It's Friday and we're going into a weekend and who knows what could develop over the weekend geopolitically, so I think that's a pretty common thing to see - traders positioning into a weekend by being a little more cautious - in particular around geopolitical events." A tepid jobs report may have also given investors pause.

U.S. hiring saw a deeper-than-expected slowdown in December with 145,000 new jobs created.

Total hiring for the year: 2.1 million new jobs, which was the weakest annual job gain in 8 years.

Another disappointing sign: average hourly earnings rose just 0.1 percent in December.

But on a bright note, the nation's unemployment rate held steady at 3-1/2 percent, a near 50-year low.

Boeing was once again a drag on the Dow.

The company released hundreds of internal memos detailing past employee complaints about the development of its now grounded 737 MAX, including one message describing the plane as "designed by clowns who in turn are supervised by monkeys." The MAX has been grounded for nearly a year following two deadly plane crashes.

Boeing's biggest supplier is feeling the heat from a shutdown in production of that plane.

Spirit AeroSystems plans to lay off about 2800 workers, according to a memo seen by Reuters.

The company warns more layoffs could follow.

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