Friday’s Market Recap: Mixed Day For Stocks Despite Horrific Unemployment Data

As investors braced for another rough day in the continuing market turmoil environment, more horrific economic data flooded the market which ended up faring better than expected.  The Dow Jones Industrial Average (^DJI) gained 0.61% to a close of 6,626.94 while the Nasdaq (^IXIC) and S&P (^GSPC) moved -0.44% and 0.12% respectively to closes of 1,293.85 and 683.38 respectively.  Crude oil gained on the day boosting $2.47 to a close of $46.08 while gold and copper gained $11.10 and $0.03 respectively to closes of $938.20 and $1.68.  Another 651,000 U.S. jobs were lost in February, the Labor Department said today, bringing the total number of jobs lost since the recession began in December 2007 to 4.4 million. The unemployment rate jumped to 8.1%, it’s the highest level in 25 years.

Roche Holding AG (NYSE:ROG) raised its offer to buy the remaining portion of Genentech Inc. (NYSE:DNA) by 7.5% to $93 a share in the hopes of ending a seven-month takeover battle.  Roche’s new offer, which expires in two weeks, now values the 44% of Genentech that it doesn’t own at about $45 billion.

Dow Chemical Co. (NYSE:DOW) and Rohm & Haas Co. (NYSE:ROH) said Friday they are in discussions about their proposed $15.3 billion merger and the pending lawsuit related to the deal.  In a joint statement, the chemical companies said they could not predict the outcome of the discussion.

Wells Fargo & Co. (NYSE:WFC) became the final large U.S. bank to cut its dividend, by 85% to a nickel per share, amid growing scrutiny of its once-strong balance sheet.  The move was announced barely five months after it proudly inked a deal to purchase troubled rival Wachovia Corp, which will help it save $5 billion per year.  The firm simultaneously announced another $2 billion in cost cuts.

Metals and mining company Vedanta Resources PLC (VED.L) is close to inking a deal worth around $1.5 billion to acquire the operating assets of U.S. copper miner Asarco LLC.  The rationale for the deal is to expand Vedanta’s presence into the U.S. and to move towards being a fully integrated producer of non-ferrous metals.

Disclosure: The mutual fund the author manages is long DNA.

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