Dow Jones industrials sink 500 points

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The Dow Jones average was down 402 points at 25,784 and the S&P 500 was 36 points at 2,786 as the value of the United States dollar rose by an average of 0.5% on foreign exchange markets.

Shares of Exxon Mobil dropped 5.10 per cent to close at $84.53 apiece after it reported weaker-than-expected earnings on Friday.

The higher wage growth and potentially higher inflation "might then lead the Federal Reserve to raise their interest rates more rapidly than the market is comfortable with", he told NPR's John Ydstie. Crude oil prices headed lower. The S&P 500 index meanwhile, finished down 2.1%, at 2,762, while the Nasdaq Composite Index gave up 2% at 7,240.

The Dow closed at 25,520.96, and Friday's 666-point drop was the sixth-worst ever. The index has lost 3.9 percent since hitting a record high of 2,872.87 a week earlier.

Nonfarm payrolls rose by 200,000 jobs in January, the Labor Department said, beating expectation of 180,000.

Last Friday's job report showed that average hourly earnings rose 2.9 per cent in January from a year earlier, the fastest growth in years. Daimler Benz (as we reported yesterday) disappointed the market with a warning that higher-than-expected tech investments would suppress earnings growth during 2018, and the DAX followed.

Bond prices on Friday declined again, pushing yields higher. The yield on the U.S. 10-year Treasury hit a high of 2.8525 per cent yesterday.

Solid jobs data that underscored the strength of the economy sent bond bulls scurrying and rattled equity investors who haven't seen a week this bad in two years. Equities are being tested by the surge in bond yields, with some fund managers saying 3 percent USA 10-year rates would signal a bond bear market.

Revenue of US$66.52bn was also way short of expectations of US$74.44bn. The stock slid $62.39 to $1,119.20.

The Standard & Poor's 500 index fell 58 points, or 2.1 percent, to 2,763 as of 2 p.m. The stock was down $4.36 to $163.42. "Did you think 7 percent was going to be a normal monthly gain?" By that measure, analysts expected earnings of $1.22 per share, according to Thomson Reuters I/B/E/S.

ENERGY: Oil futures declined.

US crude fell $1.02 to $64.78 per barrel and Brent fell $1.34 to $68.31. But, the Dow Jones Index only fell 2.5% today.

CURRENCIES: The dollar rose to 110.30 yen from 109.42 yen on Thursday. The euro weakened to $1.2451 from $1.2502.

Apple shares were off by 4.3 percent as investors anxious about the iPhone maker's weak outlook amid reports of scaled back iPhone X production.

The S&P 500 and the Dow are both on track for their biggest one-week declines in more than two years.

Friday's slump caps a week of negative performance for the major US stock indexes.

Exxon Mobile sank 5 percent and Chevron lost 1.8 percent.

The pan-European FTSEurofirst 300 index of leading regional shares lost 0.98 per cent and the STOXX 600 index tumbled 1.07 per cent.

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