Midday Report: U.S. stocks drop on jobs shock

11:50 am ET Sep 7, 2007

DJIA

13,165

-197.70

S&P

1,457

-20.82

NASDAQ

2,567

-47.24

10Yr

4.38%

-0.118

U.S. stocks drop on jobs shock

NEW YORK
U.S. stocks sold off Friday in the wake of a surprising decline in
August employment -- the first such drop in nonfarm payrolls in nearly
four years.

Economic Report: U.S. nonfarm payrolls drop by 4,000 in August

WASHINGTON
U.S. employers cut back their hiring in August for the first time in
four years, government data released on Friday showed, a major surprise
that undercuts optimism about the economic outlook and makes a Federal
Reserve interest rate cut later this month much more likely.

Capitol Report: Commentary: Fed has smoking gun to cut rates, if it
wants

WASHINGTON
With payrolls falling in August, the Federal Reserve has the smoking gun
-- the hard evidence of a weaker economy -- that it would need to cut
interest rates.

Hovnanian, Beazer news caps tough week for home builders

BOSTON
Residential builder stocks, which were hit earlier this week by a plunge
in pending home sales, were under pressure again Friday on quarterly
losses and renewed bankruptcy fears.

HSBC facing shareholder pressure for strategy review

LONDON
HSBC has become the latest European target of U.S. activist investor
Knight Vinke after the fund manager revealed it has requested a
"fundamental review" of strategy at Europe's biggest bank.