Stocks fell Friday after the government reported that more jobs were lost in September than had been expected.
The decline in stocks was more moderate than the previous day’s big drop, but extended the market’s losses into a fourth straight day. After coming within 82 points of the 10,000 level last week, the Dow Jones industrials have pulled back about 4.5 percent.
The day’s news added to a recent string of bad indicators for the economy. The Labor Department reported that employers cut 263,000 jobs last month, up from 201,000 in August and worse than the 180,000 losses economists were expecting. The unemployment rate rose to 9.8 percent, in line with forecasts.
Unemployment has been one of the market’s biggest concerns throughout the recession because lost jobs mean trouble for nearly every part of the economy, from people defaulting on loans, cutting back their spending and getting forced into foreclosure on their homes. Most economists expect the rate to surpass 10 percent by early next year.
A surprise decline in factory orders Friday was also troubling investors. The Commerce Department said factory orders fell 0.8 percent in August following a 1.4 percent gain in July. Analysts had been expecting a 0.7 percent increase.
A spate of bad economic news this week has led to even more doubts that the 50 percent surge in stocks over the past six months can be sustained. On Thursday, the Dow tumbled more than 200 points after a disappointing report on manufacturing activity from the Institute for Supply Management dealt another blow to optimism that had been emerging about a recovery in the industrial sector.
Still, analysts were encouraged by Friday’s orderly trading, saying the modest decline is a sign that investors are willing to use pullbacks in their favour to pick up stocks they see as being cheap.
“Pullbacks are going to constantly be used as opportunities to get into the market,” said Hank Smith, chief investment officer of equity at Haverford Investments in Radnor, Pa.
At midday, the Dow fell 10.88, or 0.1 percent, to 9,498.40, after earlier falling as much as 79 points. The Standard & Poor’s 500 index fell 3.43, or 0.3 percent, to 1,026.42, and the Nasdaq composite index fell 4.56, or 0.2 percent, to 2,052.92.
About 3 stocks fell for every one that rose on the New York Stock Exchange, where volume came to 637.1 million shares, compared with 532.8 million at the same time on Thursday.
In other trading, the Russell 2000 index of smaller companies lost 2.72, or 0.5 percent, to 581.03.
Yields on long-term Treasurys hovered at their lowest levels since the spring. The yield on the benchmark 10-year Treasury note held steady at a five-month low of 3.18 percent.
Nembe Oil Spill From Aiteo Facility Worst I’ve Seen – Diri
The Bayelsa State Governor, Senator Douye Diri, on Wednesday returned from visiting the oil spill site in Nembe Local Government Area of the state, describing it as the worst he had seen in his lifetime.
The OML 29 Well 1 platform, which is operated by Nigeria’s largest indigenous oil firm, Aiteo Exploration and Production Company Limited, has been spilling crude unabated into the Santa Barbara River for about one month.
An estimated two million barrels of crude has reportedly been spilled into the river, polluting the flora and fauna of the area, the governor’s spokesperson Dan Alabrah, said.
The Minister of State of Environment, Sharon Ikeazor, had said the scene of the spill was like a war zone.
Overwhelmed by the spill, Aiteo hired Halliburton’s Boots and Coots to “kill the well” by injecting cement into it. It bought the well from the Royal Dutch Shell in 2015.
As at Wednesday, the Bayelsa government said the spill that began November 5 was still ongoing.
Governor Diri said the continuous spillage has further endangered the lives of people of Nembe, Bayelsa and indeed the Niger Delta.
In a statement issued by his Chief Press Secretary, Mr Alabrah, the governor, who expressed shock over the quantity of crude that has been spilled into the environment, called on the Federal Government and operators of the oil field to immediately take action to stop it.
According to him, the prolonged oil spill into the water and air had an immediate and long term effect on the health of the inhabitants.
While assuring the people that appropriate measures would be taken to seek redress, he noted that the quest by oil firms to make money would not be at the expense of the lives of the people.
Describing fishing as the source of livelihood of the people of the area, Mr Diri noted that just as there are grazing routes, Bayelsa State has fishing routes and must be protected.
His words: “Today happens to be a very dark day for me. What we have seen, I believe, is worse than what happened in the Gulf of Mexico. In all my life, I have not seen such magnitude of oil spillage.
“Our people are endangered. Our people’s source of livelihood is endangered. I empathise and sympathise with the people of Nembe on behalf of the government and people of Bayelsa State.
The Bayelsa governor also decried the exclusion of indigenes of host communities in the running of the oil industry, saying that if indigenes were part of the operations of the oil field, they would have looked for ways to address the problem.
To ameliorate the suffering of the people, the governor directed the State Emergency Management Agency and Ministry of Health to immediately provide relief materials and healthcare services to the people.
Earlier, the chairman of Nembe Local Government Area, Hon. West Alalibo, and member representing Nembe Constituency 2 in the State House of Assembly, Edward Brigidi, appreciated the governor for embarking on an on-the-spot assessment visit to the site.
‘Emerging Challenges May Frustrate Dev Of Gas Resources’
Although the Petroleum Industry Act (PIA) is expected to unlock gas potential in Nigeria, especially the current 206 trillion standard cubic feet proven reserves, stakeholders Wednesday said the goals might remain elusive.
Investment to unlock the series of the opportunities outlined by the country according to the stakeholders, may remain a daunting task amidst heavy levies on the sector, domestic gas pricing challenges as well as lack of necessary technology and skills set.
Coming as the price of natural gas Wednesday, tumbled further to $4.4 per MMBtu after rising close to $7, the stakeholders at the 10th Practical Nigerian Content Forum stated that without the right environment, Nigeria may miss out of the window of opportunities available through the energy transition phase.
The Senate Chairman, Local Content, Teslim Folarin at the event also insisted that the cross-sectorial local bill in the National Assembly would make existing executive orders on patronage of Nigeria goods and services a law across sectors of the economy, stressing that it won’t however scrap the NOGIC Act.
With the current high price of cooking gas, the inadequacies of gas to power plants, the experts noted that data challenges, legal framework, lack of collaboration, weak research and development, lack of technology, imposition of taxes on the gas value chain lay heavy siege to the country’s aspirations in the gas revolution.
Group Executive Director, Gas and Power at the Nigerian National Petroleum Corporation Limited, Abdulkadir Ahmed, insisted that declining funding for fossil fuels would create challenges for existing gas resources in the country, stressing that the sector must devise a means to fund projects and also produce more with cost.
Ahmed was also concerned about the infrastructure that transports and ensures utilisation of gas, adding that a transparent and market-driven pricing remained sacrosanct.
“We can not make progress without a market-driven and transparent gas price. No one will put in money if they have no feasibility of how they will recover their cost. There won’t be any gas to process if we do not invest in upstream activities,” he said.
Managing Director, Shell Nigeria Gas, Ed Ubong stated that there was a need to build local capacity for gas and ensure that the resources are used to spur industrial development.
According to him, there was a need to support indigenous companies to thrive, adding that the gas space remained a key avenue to grow local content.
A Governing Council Member at Nigerian Content Development and Monitoring Board (NCDMB), Mina Oforiokuma said with progress being made by countries like Mozambique, Nigeria needs to learn and move fast to address bottlenecks.
Speaking on the expansion of local content across sectors, Executive Secretary of NCDMB, Simbi Wabote noted that the government may consider a local content department across ministries to develop.
Wabote said: “That’s the only way you can get benefit out of the implementation because what people forget is that NCDMB is like a department within the ministry of petroleum resources saddled with the responsibility of driving local content within the oil and gas industry and controlled by the Ministry in the same way.”
Senator Folarin noted that the government remained concerned about the development of indigenous companies, adding that the move would address inefficiencies, in the long run reduce cost of projects and build strong local companies that can compete globally.
He revealed that some of the key sectors that would be primarily targeted are power, ICT, manufacturing, agriculture and others.
PHCCIMA Boss Lists Core Service Areas
The 62nd President of the Port Harcourt Chamber of Commerce, Mines, Industries and Agriculture (PHCCIMA), Sir Mike Elechi said his administration shall have member oriented, inclusive programmes and opportunities as its hallmark and guiding principles.
Elechi said this during his investiture as the PHCCIMA President in Port Harcourt during the week.
He also listed consolidation of growth, peace, unity, increased scope of programme dispensation and internally generated revenue as part of his core mandate to be delivered to the people.
He said that these would be achieved within the confines of PHCCIMA’s constitution and that of the Country.
The President who was a permanent secretary before his retirement, pointed out that the choice of the key areas was as a result of deep reflection and wide consultation with relevant stakeholders in the society.
He said that his administration would reintroduce the monthly PHCCIMA meeting, develope a calendar of member oriented programmes and opportunities as well as trade mission travels and access for the benefit of its members.
On the issue of increased scope of programme dispensation and internally generated revenue, he said that it would be realised by creating an atmosphere of welcome and corporate opportunity.
“Another way out among others, was engagement of various governments both state and local, with business strategies especially non oil businesses”, he said.
In his address, the Chairman of the occasion, Chief Ferdinand Anabrabra, urged those that are yet to be registered with PHCCIMA to hurry and do so in order to meet up with the current speed of the organisation.
Anabrabra, anchored his point on the passion that the new President and his team have for the body, which will definitely pay off.
Also speaking, the former President of Nigerian Bar Association ( NBA), Hon Onueze C.J . Okocha, said that Elechi’s whealt of experience would enable him do the expected.
”As a career Civil Servant and a successful businessman cum Manager and Chief Executive Officer of the Vintage Farm and Products in ElelIkwerre Local Government of the state, his administration would be successful.
The Tide gathered that the Elechi-led PHCCIMA executive would elapse in the next three years.
By: King Onunwor
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