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Dow Jones Today: The markets slid on Friday despite the fact that the unemployment rate slipped to a five-year low.
The jobless rate fell to 6.3%, beating expectations of 6.6%. In April, the U.S. economy created 288,000 jobs, but the labor participation rate slipped to 62.8% from 63.2%.
The Dow Jones Industrial Average was down 46.04 points to finish at 16,512.83. The S&P 500 slid 2.56 points to close at 1,881.12, while the Nasdaq was down 3.55 points to finish at 4,123.90.
Here's your recap of today's major market events.
- Banks Behaving Badly: The battle over Herbalife Ltd. (NYSE: HLF) is far from over. This afternoon, the U.S. Securities and Exchange Commission (SEC) announced a probe to determine whether some hedge funds engaged in market manipulation or insider trading last year. U.S. regulators are trying to determine if the companies failed to disclose that they may have united to position themselves against Bill Ackman's $1 billion short position. Both the FBI and the SEC haven't accused anyone of wrongdoing. However, they did notice that the bets on both sides were "well-timed." The SEC has requested documents from the firms of both Carl Icahn and George Soros and is exploring whether Ackman engaged in any wrongdoing before he publicly announced his short position in December 2012.
- Ukraine Begins Unwinding: The situation in Ukraine is worsening again. On Friday, the United Nations Security Council held an emergency meeting at the request of President Vladimir Putin and his government. The meeting comes in the wake of Ukraine's decision to send tanks into a pro-separatist stronghold. Fighting on Friday left many dead and saw two helicopters shot down. With presidential elections in the next month, both President Obama and German Chancellor Angela Merkel have warned against any meddling by Russia's government.
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.