Stocks – Dow Reverses Course, Loses 130 After Hitting 29,000

Investing.com – The wiped out gains and ended lower after hitting a historic level in intraday trading Friday, pressured by a downturn in financials as Treasury yields fell sharply on a weaker jobs report.

The lost 0.29%, while the fell 0.27% and the slumped 0.46%. The Dow reversed course after hitting 29,000 for the first time.

The U.S. created jobs last month, undershooting economists’ forecast of 164,000.

The jobs report also showed weak wage inflation, pressuring Treasury yields, which led to a slump in financials, mostly banks.

JPMorgan (NYSE:) and Citigroup (NYSE:) fell about 1%, while Goldman Sachs (NYSE:) ended the day just below the flatline.

Falling U.S. Treasury yields weigh on a bank’s ability to generate net interest margin income – the difference between the rates they charge on loans and the rates they pay on deposits and borrowings.

Industrials also played their part in the broad-based decline, partly driven by pressure from General Electric (NYSE:) and Boeing (NYSE:).

GE fell 2% as JPMorgan reiterated its underweight rating and $5 price target on the stock.

Boeing fell 2% as its reputation continued to come under fire after documents released on Thursday to Congress showed employees raised doubts about 737 Max’s ability to fly safely.

The negative end to the week on Wall Street comes as investors hope the U.S. and China are nearing a resolution to their months-long trade war, with the phase one deal expected to be signed next week.

White House economic adviser Larry Kudlow told Fox Business Network that the trade deal is on track to be signed on Jan. 15.

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